$25,000 Loans

In general, there are two main categories of loans: secured and unsecured.

When we look at borrowing $25,000, requirements can become more strict, and options can become more narrow. To find the best loan, make sure you choose the right type of loan and position yourself properly. Checking your credit score before applying for offers or a loan can offer the opportunity for you to identify areas of improvement. Offers will be more likely to be returned for borrowers with fair, good, average, or excellent credit. This is especially true as the loan amount increases. The larger the loan, the more the loan will likely cost. As you shop offers, be aware of the total loan cost. While the monthly payment may catch your attention, loans are not all about a monthly payment. Understanding the total cost of the loan and how it works can help you compare offers for what they are worth. It can also help motivate you to create a plan that can help you pay the loan off faster and potentially save on interest and fees.

Now let’s take a look at secured loans vs. unsecured loans:

• Secured loans are loans that are backed by collateral. Collateral can consist of your home, vehicle, or other assets, depending on what the lender permits. Some secured loans, such as auto loans, can require collateral and a down payment. While secured loans reduce the risk for the lender, which can allow them to relax requirements in some cases, they can be more complicated and risky for the borrower. However, in some cases they are more cost-effective and can make sense. 
• Unsecured loans are loans that are not backed by collateral. Instead, they are extended based on your creditworthiness. While secured loans also examine a borrower’s creditworthiness, they are not solely based on it. With an unsecured loan the lender assumes more risk. If the borrower defaults on the loan it can damage their credit score, but there’s no collateral to be seized. For example, if you use an unsecured loan to build a swimming pool, and default on the loan, the lender should not come possess the swimming pool. While the funds were allocated toward the swimming pool, it really has no tie to the loan. 

Ultimately, the loan that’s best will depend on what you qualify for and what’s important to you. Offers are based on your qualifications and request, so comparing personalized offers can play a pivotal role in identifying a competitive offer, based on what you actually qualify for. Shopping loan offers are more complex than comparing the price of the same blue jeans offered for sale at two different stores. There are several factors that lenders can assess when making a loan decision. All of these factors can impact the offer received. 

How do you compare $25k personal loans in [October 2023]?

The internet can make comparing offers more convenient, while expanding options. However, you will want to ensure you are sharing information and or considering legitimate lenders. Since you may not qualify for every lender you apply with, and some may have more competitive offers than others, using Acorn Finance can help you compare offers. We partner with a network of top national lenders. By submitting information on our website, we can communicate with lending partners to generate personalized offers in seconds, all with no credit score impact. 

As you compare offers, consider the following components, in addition to the monthly payment:

• APR: APR can play a big role in the total cost of the loan. APR represents the yearly interest charge generated by the loan. In most cases, the interest fee for the year will be bundled into monthly payments, so you may not even realize you're paying it. That is, until you do the math or look at the APR. If you take out a $20,000 loan with a repayment period of five years, the APR can add up year over year. 
• Fees: On top of APR, you may encounter fees applied to your loan. Origination fees or late payment fees are a few examples of fees. Some loans may have higher fees than others, thus impacting the total loan cost. 
• Total loan cost: Note what the loan will cost you over the duration of the loan. If there are no prepayment penalties, you may be able to pay the loan off sooner than the repayment period to save money on the total loan costs. 

What are $25k loans?

A $25,000 loan is a loan for $25,000. While that may be straightforward, understanding loans and offers can be rather complex. Additionally, with larger loan amounts, the commitment may be longer. 

How do $25,000 personal loans work?

Personal loans are installment loans. Installment loans are usually funded as a lump sum that is to be repaid in equal monthly installments over a predetermined period with interest. 

1. FInd a lender or network of lenders that can offer $25,000 personal loans: Lenders typically have minimum and maximum loan amounts. You will need to find a lender that can offer a personal loan in the amount of $25,000. Secondly, you will need to qualify for the loan. 
2. Get prequalified: The first step toward getting a $25,000 loan is to get prequalified. Some lenders can extend prequalified offers without doing a hard credit pull. A prequalified offer is usually contingent upon the underwriting process, where the lender will verify the details you submitted and perform a hard credit pull. With that being said, it’s important to submit accurate information from the start to avoid speed bumps during the process. Lenders can revise their prequalified offer or take it back together if they lose confidence in the decision. 
3. Accept the offer: Accept the offer once you’ve found the loan offer you want to pursue. You may need to submit a final application for the lender and or submit supporting documentation. When the lender has what they need, they can decide to approve or deny your loan officially. 
4. Get approved: Once approved, it’s time to get your funds. Some lenders can deposit funds directly into your bank account in as little as 1-2 business days, although funding times can vary.

When are $25,000 loans worth it?

Before borrowing $25,000, you’ll want to make sure it’s worth it. Additionally, you will want to ensure you can keep up with the payments. Loans are designed to help people get ahead, but the cycle of debt is an easy one to get trapped in. Just because you get an offer for a $25,000 loan, does not mean it’s worth it. Before committing, weigh the pros and cons as they relate to your situation. 

List pros & cons of $25,000 personal loans:

Pros:

• Fixed monthly payments
• Funding in as little as 1-2 business days (although funding times may vary) 
• Funded as a lump sum 
• Few spending restrictions
• Marketplace of lenders to consider 

Cons

• Interest rates and fees
• Risk of default 
• Credit score impact 
• Increase in project costs 
• Increases debt 

Why choose Acorn Finance for comparing $25k personal loans?

Partnering with a trusted platform such as Acorn Finance can alleviate some of the stress associated with taking out a loan. At Acorn Finance, we work to streamline the process of checking personal loan offers with our safe and secure platform. At Acorn Finance, you can check rates in seconds with no credit score impact. Take advantage of our convenient portal with vetted and trusted top lending partners. With well-known names, you can expedite your way to finding the right $25,000 dollar personal loan. 

Additionally, we eliminate the frustration of sifting through the internet, verifying lenders, and researching for hours. Whether you are ready to take out a loan today or just shopping around - you have everything to gain by checking offers at Acorn. 

Plus, you can sign in and return to them at a later date if the offers are still available. Our lending partners can fund loans in as little as 1-2 business days, although funding times can vary, so when you’re ready to accept an offer, they are ready to help. Upon accepting the offer, you can complete the application and approval process with the lender of your choice. 

We take the overwhelming process of shopping loan offers and bundle them up into a nutshell (no pun intended). 

Pros and cons of lenders $25k Personal Loans:

Lenders typically have minimum and maximum loan amounts, but these are not guaranteed for everyone. Applicants will need to qualify. However, if you need to borrow $25,000, you will want to at the least apply with a lender that’s a possibility with. Here are some top lenders for personal loans. 

LightStream

Best for home improvement loans 

Minimum qualifications: 

• Minimum credit score requirement of 660 or above 
• Minimum income requirement of $50,000/year

Pros:

• No origination fees
• Funding as soon as one business day on approved loans, although funding times can vary
• Competitive loan offers
• Allows co-signer
• Large personal loans available 
• Flexible repayment periods up to 12 years

Cons:

• Strict qualification requirements
• No access to pre-qualify through the LightStream website (When applying directly, you can get pre-approved but not pre-qualified, therefore, you may be subject to a hard credit pull. To get pre-qualified with LightStream, check offers through Acorn Finance to see if you qualify.)
• No direct payment to creditors for debt consolidation loans

SoFi

Best for online personal loans for borrowers with next-to-perfect credit

Minimum qualifications:

• Minimum credit score requirement of 680 or above 
• Minimum income requirement of $50,000/year

Pros:

• Flexible loan amounts and repayment terms
• No origination fees
• Competitive interest rates
• Funding as soon as one business day on approved loans, although funding times can vary
• Allows cosigner applications
• Unemployment protection available

Cons:

• High credit score requirement
• Approvals may take 3 days or more

Best Egg

Best for personal loans for borrowers with fair credit 

Minimum qualifications:

• Minimum credit score requirement of 600 or above 
• No minimum income requirement 

Pros:

• Fair credit scores can qualify
• No minimum income requirement
• Same or next day funding available, although funding times can vary

Cons:

• Not available in some states
• Origination fees between 0.99% and 6.99%
• Higher APRs

Prosper

Best for peer-to-peer loans

Minimum qualifications:

• Minimum credit score requirement of 600 or above 
• No minimum income requirement 

Pros:

• Low threshold for credit score
• No minimum income requirement
• Flexibility to change payment dates
• Offers peer-to-peer lending

Cons:

• Long funding times
• Origination and late fees may apply
• No rate discount for autopay is available
• Restrictive repayment periods
• Funding may take about 5 business days 

Upgrade

Best for bad credit personal loans 

Minimum qualifications:

• Minimum credit score requirement of 560 or above 
• No minimum income requirement

Pros:

• Low credit score requirement
• No early payoff penalty
• Joint applications allowed
• Funding as soon as one business day on approved loans, although funding times can vary

Cons:

• Origination fees between 2.9% to 8%
• Higher APRs, especially for subprime borrowers

Axos Bank

Best for refinancing existing personal loan

Minimum qualifications:

• Minimum credit score requirement of 700 or above 
• Minimum income requirement $48,000/year

Pros:

• Low origination fees
• Mobile app to manage loans
• Fast funding times
• Funding as soon as one business day on approved loans, although funding times can vary

Cons:

• High credit score requirement
• Origination fee up to 2%

OneMain Financial

Best for borrowers with less-than-perfect credit who need fast funding for a personal loan

Minimum qualifications:

• Minimum credit score requirement of 600 or above 
• Minimum income requirement $7,200/year

Pros:

• Low credit score requirement
• Offers secured loan option
• Low income requirement
• Flexibility to choose your payment date
• Fast funding times

Cons:

• High interest compared to similar lenders
• Origination fee between 1% – 10% (or flat fee up to $500 depending on state)

LendingPoint

Best for fair credit personal loans with fast funding

Minimum qualifications:

• Minimum credit score requirement of 600 or above 
• Minimum income requirement $30,000/year

Pros:

• Low origination fees
• Relaxed credit score and income requirements
• Same or next-day funding is available, although funding times can vary

Cons:

• No joint applications
• High loan costs
• Short repayment periods 

Check rates from these top lenders and more at Acorn Finance!

Lenders outside the Acorn network to consider:

Lending USA

LendingUSA is best for one-time purchases or uses, such as cosmetic surgery financing, pet financing, funeral financing, and more. LendingUSA offers loans for a variety of industries. Loans can be obtained through the LendingUSA website or through a merchant partner that refers to LendingUSA. Additionally, if you pay your loan off within six months, no interest will be charged to the principal. With fast approval decisions and loans as small as $1,000 available, Lending USA is another lender to consider for a  personal loan. 

Reprise Financial

Reprise Financial can help borrowers find personal loan offers that meet their needs. In order to help borrowers obtain funds quickly, Reprise works to streamline the personal loan process. With customized payment options and fixed rates, check personal loan offers at Reprise Financial. 

Universal Credit

For borrowers with bad credit, Universal Credit may be your golden ticket to the funds you need. With a minimum credit score requirement of only 560, Universal Credit is a top choice for subprime borrowers. While loan costs may be higher, they usually are when it comes to borrowing money with bad credit.