Getting a $2,000 loan: Your step-by-step guide

Quick access to a $2,000 loan – and the freedom to use it however you want – can offer relief in many situations. Whether for debt consolidation, medical bills, or an emergency expense, a $2,000 personal loan can help bridge a financial gap.

As with all types of loans, you’ll need to meet some eligibility requirements. This guide explores these requirements, the steps involved in getting a personal loan, and how you can go about making sure a $2,000 loan is right for you.

Where can you get a $2,000 personal loan?

Not all lenders offer loans as low as $2,000. Fortunately, though, you still have options if a $2,000 loan is enough to meet your needs.

Many banks, credit unions, and online lending institutions, including Rocket Loans^SM, offer $2,000 personal loans. Your financial situation and how quickly you need the funds often dictate which lender best fits your needs. After all, eligibility requirements, your interest rate, and how long it takes to get your loan funds usually vary by lender type.

Online lending institutions, Rocket Loans being no exception, can often offer same-day funding if you’re in a hurry.

How to get a $2,000 personal loan

Each lender has its own personal loan application process. But, regardless of which lender you choose, you’ll follow similar steps to get your loan.

The steps below walk through the process of how to get a $2,000 personal loan.

1. Make sure you meet eligibility requirements

Most lenders have a set of personal loan requirements that borrowers must meet. These requirements usually include:

• Credit score: You’ll likely need a minimum credit score. Some lenders approve borrowers with a credit score as low as 550, but most lenders look for a minimum score closer to 650.
• Debt-to-income ratio (DTI): Your DTI compares your monthly debt payments to your gross monthly earnings. A lower DTI will likely improve your chances of approval since it indicates you have the ability to manage more debt. Experts recommend aiming for a DTI of 36% or less.
• Income: Lenders often require borrowers to have enough income to support the loan repayments.
• Employment: In some cases, you’ll need to provide proof of employment. This shows the lender you’ll

If you aren’t sure where your financial situation stands, consider checking your credit report to confirm you meet the lender’s credit requirements. You can access a free report from each of the three major credit bureaus – Experian^TM, Equifax^®, and TransUnion^® – by visiting AnnualCreditReport.com.

2. Gather necessary documents

When applying for a personal loan, you’ll likely need to provide the following documents:

• State-issued ID
• Tax documents
• Pay stubs
• Documentation of your personal contact information
• Social Security number or Individual Taxpayer Identification Number
• Utility bills or a lease agreement to verify your home address

Having these documents prepared can help you get approval and your money faster.

3. Get prequalified with different lenders

If possible, you’ll want to avoid submitting multiple loan applications at once. Lenders typically perform hard credit inquiries when you apply for a loan, and multiple hard inquiries in a short time period can hurt your credit score.

Instead, consider getting prequalified for a personal loan with a few lenders. Prequalifying can give you an idea of the terms you’ll receive, and you’ll avoid a hard credit pull until you are ready to officially apply. Not only is this a more credit-friendly way to explore your loan options, but you might find out about your prequalification status in minutes.

4. Weigh your loan offers

After you get prequalified by a few lenders, compare your loan offers. Take this opportunity to see what lenders offer lower interest rates. Look for loans with flexible repayment plans and minimal fees.

Considering these factors will help ensure you choose the most ideal loan option available.

5. Choose a lender and submit your application

Once you determine your best personal loan offer, it’s time to submit your loan application. After you apply, your next step is to wait for the lender’s approval decision.

You’ll likely get an answer within 1 – 7 days of applying. In some cases, you could hear back the next business day.

6. Accept your loan terms and receive funds

If your application is approved, be sure to review the loan terms before accepting them. You’ll likely have to sign a promissory note, or loan agreement, before you receive funding. By signing this document, you accept the loan terms and your legal obligation to repay the loan.

Upon accepting the loan, you can expect to receive funds in 1 – 5 days. Some online lenders can even disburse funds the same day.

Pros and cons of a $2,000 loan

Before making any big decisions, it’s important to weigh the potential benefits and drawbacks. Here are a few of the pros and cons associated with taking out a $2,000 personal loan.

Understand the limitations of personal loans

Generally, borrowers can use the funds from a personal loan for almost any reason. Some common uses include:

• Keeping up with medical bills
• Covering a car repair
• Solving a temporary cash shortage
• Funding a home repair
• Taking a vacation
• Paying for a wedding

While the uses of personal loans are generally flexible, there are some limitations attached to this type of loan. You usually cannot use the funds for:

• A down payment on a house
• Investments
• Business expenses
• Illegal activities
• College expenses

Before you move forward with a personal loan, read the fine print to confirm there aren’t any restrictions against using the funds for your planned purpose.

$2,000 loan FAQ

Let’s take a look at some common questions that people ask about taking out a $2,000 personal loan.

Can I get a $2,000 loan with bad credit?

It’s possible to get a $2,000 personal loan with bad credit. Some providers offer bad-credit loans designed for borrowers with a low credit score or no credit at all. You may even be able to find lenders that offer loan approval with no credit check. But opting for a no-credit-check loan could mean higher interest rates and fees. Unfortunately, this makes it easy to fall into a cycle of debt.

Using a co-signer can also improve your chances of approval if you have poor credit. Another option is to apply for a secured personal loan, where you have to put up some form of collateral.

How much is interest on a $2,000 personal loan?

Interest rates on personal loans vary in large part based on your credit score and lender. On average, personal loan interest rates are currently 11.66%. But it’s not uncommon for interest rates to fall in the 10% – 32% range.

A good credit score, usually around 670, can help you stay on the lower end of the interest rate pendulum. Lenders tend to offer the lowest rates of all to borrowers with exceptional credit, which usually means a score of 800 or above.

What is the monthly payment on a $2,000 loan?

Your repayment term and interest rate will influence your monthly loan payment on a $2,000 loan. Borrowers with a higher interest rate will pay more per month on their loan. A shorter repayment period can also lead to a higher monthly payment.

For example, let’s say you take out a $2,000 personal loan with a 12% APR over a 2-year term. The monthly payment would be $94.15.

Should I take out a $2,000 personal loan?

Whether you should take out a personal loan for $2,000 depends on your financial situation. In general, it’s best to avoid taking on debt if you can avoid it. However, if you need money to fill a gap and can qualify for an interest rate lower than the rate a credit card can offer, a personal loan could make sense for you.

The bottom line: Is a $2,000 personal loan the right choice for you?

Sometimes a little help goes a long way. A $2,000 loan could help you solve a short-term financial problem. But, in some cases, taking on a personal loan of any size adds to an already debt-burdened budget. If you are struggling to make ends meet regularly, it’s unlikely a modest personal loan will resolve your financial issues. In fact, adding another loan payment could amplify your budget problems.

Make an effort to carefully assess your financial situation before moving forward with a loan application. If you decide a $2,000 personal loan is the right option for you, submit an application online with Rocket Loans today.