When your budget is tight or your credit card bill is higher than usual, a small personal loan may help cover a temporary spike in your monthly expenses. Typically defined as $3,000 or less, a small personal loan can be a great way to borrow exactly what you need without taking on more debt than is absolutely necessary.
Because they are less profitable than home mortgages and auto loans, many major banks won’t offer small personal loans. However, plenty of reputable online lending marketplaces offer access to lenders that do offer such loan options. For example, qualified borrowers can obtain a personal loan through LendingClub for as low as $1,000 (and all the way up to $40,000) at much lower rates than you’d get for a payday loan.
Regardless of your lender, it’s important to take on no more debt than is needed to cover the expense.