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If your home isn’t connected to a local sewer system, a septic tank is a must. But setting up a new septic system or replacing an old one can be a pricey endeavor. A new system, as of 2025, can typically cost between $3,634 and $12,512, with an average of $8,035, according to the home improvement site Angi.

Fortunately, there are a few different payment options available to help homeowners cover the costs of installing this essential piece of equipment.

In this guide, you’ll learn the various sources you might choose to fund your septic system project, and some of the pros and cons of each.

Septic System Costs

Most homeowners in the U.S. pay from $3,634 to $12,512 for a septic system installation, according to the home improvement site Angi. The average cost comes out to about $8,035. But prices can vary significantly depending on the size and type of tank you choose, the materials used, labor, and other factors — and costs could go over $20,000.

If you’re a die-hard DIYer who’s considering tackling this project with the help of some YouTube videos, you may want to think again. This is a big and dirty job that’s probably best left to professionals with the experience and machinery to get it done right. Here, take a look at some ways you can pay for the work and stay clear of the mess and stress.

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What Factors Influence Septic System Pricing?

How much a new septic system costs will depend on several factors. Among them are:

•   How large and complex the septic system is

•   The site conditions, which can include everything from whether it’s steeply sloping to what type of soil needs to be dug up

•   Local permit guidelines and other regulations

•   What type of materials and tank you opt for

•   The cost of labor which can vary considerably with the cost of living in your area

As with other home improvement projects, it’s wise to comparison-shop and get multiple bids before starting a septic system replacement project.

Personal Loans for Septic System Financing

If you need to finance your project in a hurry (and with a septic system repair, that’s often the case), you may want to consider a personal loan.

With personal loans, it’s possible you could receive your money on the same day you apply or within a few business days. You also may have some flexibility in when the funds arrive and how long you have to pay back the money.

Personal loan repayment terms typically range from two to seven years, but they vary by lender. The amount you can borrow and the interest rate you’ll pay with home improvement loans are generally based on a few different factors, including your credit score. Typically, the better your credit, the lower the interest rate.

Generally speaking, qualifying borrowers with a strong credit history and high income may be able to secure a loan of up to $100,000 without having to provide some type of collateral. This type of home improvement loan usually has a fixed interest rate, so you can know exactly what your monthly payments will be.

Home Equity Loans and HELOCs

Another potential way to finance a septic system project is to tap your home equity and apply for a home equity loan or home equity line of credit (HELOC).

If you qualify for a home equity loan for your septic system, you’ll receive a lump-sum amount that you’ll repay in equal monthly installments, much like a personal loan.

A home equity line of credit (HELOC), on the other hand, works more like a credit card. The interest rate usually isn’t fixed with a HELOC, and neither is the payment amount. As you repay the money you’ve borrowed, you can use it again — up to a predetermined limit.

Because both home equity loans and HELOCs are secured with your home as collateral (which means the lender can foreclose if you fail to make your payments), the interest rates are generally lower than with unsecured personal loans. But it’s worth noting that you typically have to have at least 15% to 20% equity in your home to qualify, it can take longer to get your money, and you can expect to pay closing costs with this type of financing.

Credit Score Considerations for Septic System Loans

If you’re planning on getting a loan to finance a new septic system, your credit score will likely come into play in a few important ways.

•   Your credit score and credit report will impact the kind of loan you qualify for. Those with higher scores and strong reports will usually be approved for lower interest rates and higher loan amounts, and the opposite is true as well.

•   More specifically, many lenders require a good to excellent credit score (say, 660 or higher) in order for an applicant to be approved for a loan at a favorable rate. Loans are often available to those with lower scores (even borrowers with bad credit), but they will probably involve higher interest rates.

•   When you apply for a loan to fund a new septic system, the lender will typically require a hard credit pull to gain insight into your creditworthiness. This usually lowers your credit score by several points for a short period of time.

•   Once you have a loan for your new septic system, on-time payments should positively impact your credit score. Late payment or missing payments entirely, however, can lower your score.

Government Programs and Grants

If you meet certain criteria, you may be able to get help with funding through federal or state assistance programs. Here are a few options you may want to research:

•   The Environmental Protection Agency (EPA) Clean Water State Revolving Fund provides grants to all 50 states and Puerto Rico so that qualifying residents can receive low-interest loans to install, upgrade, or maintain their septic systems.

•   The U.S. Department of Agriculture (USDA) offers both loans and grants that can benefit low-income homeowners who need help with their septic system costs.

•   An FHA 203(k) loan combines a mortgage and funding for repairs, which may include septic system replacement.

•   The Department of Housing and Urban Development (HUD) provides community block grants to help eligible homeowners repair, install, or improve their residential septic system.

•   Some states also offer tax credits or deductions to residents who repair or replace a septic system. (You may want to check with your state government or local tax professional first to see what’s available and if you qualify.)

Contractor Financing and Payment Plans

It’s possible the septic tank company you’re considering has teamed up with a lender in order to offer its own financing plan to potential customers.

The salesperson or contractor will likely take you through each step of how the company’s septic tank financing works and may even offer a financial incentive if you sign up. Just remember that a contractor isn’t obligated to find you the best payment solution when it comes to how to pay for septic repair. So it’s important to review and understand the terms of any offer you receive, and to compare the contractor’s offer with other options available.

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Comparing Septic System Financing Options

Hopefully, you’ll have time to do some comparison shopping as you consider the various financing methods for your septic system project. Here are some things to keep in mind as you do your research:

•   What monthly payment works for your budget? A longer loan term generally means lower monthly payments. Keep your budget in mind as you choose how much time you’ll need to pay back your septic tank installation financing.

•   How’s your credit? Good credit can often get you a better interest rate and other loan terms. If you aren’t sure where your credit stands, you may want to check out your latest credit report and/or credit score and dispute any errors you see.

•   What’s in the contract? Understanding the terms you’re being offered for a septic tank loan can keep you from running into trouble down the road. For example, if a contractor or credit card company offers you a low introductory interest rate, it’s important to ensure you’ll have enough time to pay off your purchase before the interest rate goes up.

•   Are there fees? Remember, fees can add to the overall cost of your loan. Some lenders may charge origination, application, and other loan fees. And you can expect to pay for a home appraisal and other closing costs if you get a home equity loan or HELOC.

•   How fast can you get the money? If you don’t have enough cash stashed away for your project, applying for a personal loan may be the quickest way to finance the work. Some personal loan lenders can get you your money on the same day you’re approved. Contractor financing also may offer a convenient and fast approval process.

Tips for Choosing the Right Financing Option

Deciding on the right financing option for your septic system replacement or repair will depend upon your unique situation. A few points to consider:

•   If you are in a rush to get your system back up and running (which is often the case), a personal loan can be a good avenue to pursue. Some lenders even offer same-day financing options. Note that your credit score will come into play, with higher scores typically contributing to lower interest rates.

•   If you have built up home equity, you might investigate a home equity loan or line of credit. These can take longer to secure and they use your home as collateral (meaning you risk foreclosure if you default), but they can offer favorable interest rates.

•   If you qualify, you may be able to secure government-backed loans and grants to pay for your septic system work. Diving into the requirements and documentation needed is a key step here.

•   Contractor payment plans may work well for some homeowners; be sure to review the terms and conditions carefully and compare them to other options.

•   Another option is to use your emergency fund to take advantage of a no-interest way to finance the work needed.

Understanding Total Loan Cost

As you look into the options available for funding your septic system work, remember to consider the total cost of the loan. That includes:

•   The principal, or the amount you are borrowing

•   The interest charged over the life of the loan

•   The fees that are often assessed, such as origination fees, which can be 1% to 10% of the principal amount

Understanding these factors will help you determine the full cost of the loan over the term you select and how much money you may need upfront. Equipped with this intel, you can determine which loan option best suits your needs.

Evaluating Repayment Flexibility

Sometimes, as you repay a loan, life happens and finances get tight. In that case, you may need flexibility to repay your loan. You may want to check the fine print before signing up for a lona. Features that can help in challenging times include grace periods, which are a buffer between when the payment is due and late fees kick in. Also, a loan may offer deferment and forbearance options, allowing you to pause or reduce payments in times of financial need.

On the other hand, you may also want to look into whether a loan offer has prepayment penalties. These fees can be applied if you pay off a loan before the term expires. The reason: The lender is losing out on the interest payments they were expecting to collect over the life of the loan. Prepayment fees can help compensate them for that.

Lastly, keep in mind that other features impact your repayment. A longer term can lower monthly costs but increase the amount of interest you pay over the life of the loan. Also, whether you opt for a fixed or variable rate loan will influence your monthly payment amounts, meaning whether they are stable or vary with the market.

The Takeaway

Replacing your septic system can be expensive, currently averaging more than $8,000. To fund this project, you might look into tapping your home equity via a home equity loan or line of credit, wherein you use your home as collateral. Or perhaps there’s a contractor financing plan that suits your needs. A personal loan, sometimes called a home improvement loan, can be a good option for many people, especially when funding is needed quickly; no collateral is typically needed. You may also be able to cut some of your costs if you can qualify for a government-funded grant or low-interest loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Are there tax deductions for septic system installation or repair?

A new septic system doesn’t qualify for any of the tax credits the Internal Revenue Service, or IRS, currently allows for home improvements. But some states offer tax credits or deductions to homeowners who replace or repair a septic system. A tax professional in your area can help you check for potential tax savings.

Can I finance both installation and ongoing maintenance of my septic system?

It’s a good idea to make septic tank maintenance costs a part of your household budget, but those expenses likely won’t be included in the amount you borrow to pay for a new system.

Are there special financing options for rural homeowners?

Yes. USDA loan programs can benefit rural homeowners who need to repair or replace a septic system.

What credit score do I need to qualify for septic system financing?

There is no one single credit score needed to qualify for septic system financing. However, it’s important to know that higher credit scores typically lead to approval for more favorable loan interest rates and terms, while people with bad credit are usually assessed higher rates and, say, qualified for lower loan amounts.

How long does it take to get approved for a septic loan?

How long it takes to get approved for a septic system loan will depend on the kind of financing you seek. If you are applying for a home equity loan or line of credit, that can take up to 6 weeks, depending on the lender and your specific circumstances. A personal loan can be significantly faster, with some lenders offering same-day funding or disbursement in just a few days.

Photo credit: iStock/Kwangmoozaa

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q425-054

Student loans are a type of financial aid option that lets you borrow a lump sum of money upfront that you’ll repay over time later, with interest. Some students are unclear whether a student loan is a secured or unsecured debt.

Both federal and private student loans are considered an unsecured form of debt. Keep reading to learn more on secured loans versus unsecured loans, pros and cons of each, and why student loans are considered an unsecured debt.

What Are Secured Loans?

A secured loan is a type of debt that requires borrowers to provide the lender with an asset of value to back the loan. This asset is called collateral. Collateral could be your home, your car, other property that has monetary value, a savings account, jewelry, and more. The type of collateral you put up is stated in the loan agreement.

If a borrower defaults on their loan and doesn’t pay it back, the lender can take actions to seize possession of the collateral. It then uses the proceeds from the sale of the collateral to recover the unpaid debt.

Common Examples of Secured Debt

Common types of secured loans include:

•   Mortgage loans

•   Home equity loans

•   Auto loans

•   Some personal loans

Lenders typically view secured loans as less risky to their bottom line since the promised collateral offers them at least some financial protection. In turn, secured loans might offer lower interest rates compared to unsecured loans.

Certain secured loans are also designed as accessible financing for individuals whose credit doesn’t qualify for an unsecured loan.

What Are Unsecured Loans?

An unsecured loan is an installment loan that doesn’t require an asset or collateral upfront to secure the debt. Since this type of loan doesn’t offer an asset-based guarantee to the lender, the borrower must demonstrate a strong likelihood that they’ll repay the debt.

A positive and extensive credit history, consistent and sufficient income, and low credit utilization are some markers that lenders use to determine how risky a borrower is for an unsecured loan. Additionally, since lenders don’t have access to collateral to fall back on in the event of default, unsecured loans generally have higher interest rates.

Credit cards, some personal loans, and private student loans are considered unsecured loans.

Why Most Student Loans Are Unsecured

Most student loans are unsecured because lenders do not require collateral to provide the funds. This allows students without significant assets to access the funds needed for tuition, fees, and living expenses, making higher education more accessible to a broader population.

Federal student loans, in particular, are designed to be accessible and flexible, so they are always unsecured. The government assumes the risk of lending, providing protections like income-driven repayment and deferment options that wouldn’t be feasible if loans were tied to collateral. Private lenders also issue unsecured student loans to allow students to finance their education without requiring property or other assets, though interest rates and approval criteria may vary.

Pros and Cons of Secured vs Unsecured Loans

Secured and unsecured loans have their own advantages and downsides. Before signing a loan agreement, it’s important to understand the pros and cons of each option.

Risk to Borrower and Lender

Secured loans are riskier to the borrower than to the lender. For borrowers, failing to make payments can result in the loss of the asset used as security, potentially causing financial hardship. For lenders, collateral reduces the risk of total loss, since they can repossess or sell the asset to recover funds if the borrower defaults. This security often allows lenders to offer lower interest rates compared with unsecured loans.

Unsecured loans, including student loans, pose different risks for both parties. Borrowers face the consequences of default through damaged credit scores, collections, and potential legal action, but they do not risk losing specific assets. Lenders, however, bear a higher risk since there is no collateral to recover if a borrower fails to repay. To offset this increased risk, unsecured loans often carry higher interest rates, stricter approval requirements, or reliance on cosigners to ensure repayment.

Interest Rate Differences

Interest rates for secured and unsecured loans differ primarily due to the level of risk each type of loan poses to the lender. Secured loans are backed by collateral, which reduces the lender’s risk and often results in lower interest rates.

When it comes to student loans, federal student loans often have lower interest rates than private unsecured loans because they’re backed by the federal government, which reduces lender risk.

However, secured loans (like auto or mortgage loans) still tend to have even lower interest rates overall because they’re backed by collateral. So federal student loans fall in between: lower than many unsecured loans, but typically higher than secured loans.

Recommended: What’s the Average Student Loan Interest Rate?

How Federal Loans Differ From Typical Debt

Both federal loans and private education loans are unsecured debt. However, federal loans have significant perks and protections that private student loans don’t offer.

Unlike private student loans that require a minimum credit score or cosigner, most federal student loans don’t require a credit check or a cosigner to qualify for a loan. The Direct PLUS Loan is the only federal loan that requires a credit check, but borrowers with adverse credit can still access a Direct PLUS Loan by completing a few additional steps.

Federal loan rates are fixed, meaning your monthly payment won’t change throughout your repayment term. With federal Direct Subsidized Loans, the Department of Education pays for interest that accrues while you’re in school. Conversely, federal Direct Unsubsidized Loans start accruing interest once the loan is disbursed.

You’ll also have access to a range of repayment options, including income-driven repayment (IDR) plans and student loan forgiveness programs that cancel a portion of your student debt after meeting minimum program requirements.

Lack of Collateral but Strong Repayment Enforcement

Federal student loans come with unusually strong repayment enforcement compared with other types of debt. Even without an asset to seize, the federal government can use powerful tools — such as wage garnishment, tax refund withholding, and Social Security benefit offsets — to collect on defaulted loans. Unlike many other unsecured debts, federal student loans are also difficult to discharge in bankruptcy, which further strengthens repayment expectations.

Options for Deferment, Forbearance, and Forgiveness

Federal student loan deferment allows borrowers to temporarily pause payments during certain qualifying situations, such as unemployment, economic hardship, or enrollment in school at least half-time. During deferment, interest does not accrue on subsidized loans, which helps prevent balances from growing while borrowers regain financial stability. Unsubsidized loans, however, will continue to accrue interest, even though payments are paused. Note that under the “Big, Beautiful Bill,” loans made after July 1, 2027 are no longer eligible for deferments based on unemployment or economic hardship.

Student loan forbearance is another option for borrowers who need temporary relief but do not qualify for deferment. General and mandatory forbearances pause payments for a limited period, but interest accrues on all federal loan types, which can significantly increase the total cost of the loan if left unpaid.

And finally, federal forgiveness programs offer long-term solutions for borrowers who meet certain employment or repayment criteria. Options such as Public Service Loan Forgiveness (PSLF) can eliminate remaining loan balances after a set number of qualifying payments. These programs provide a pathway to manageable repayment and potential debt relief, especially for borrowers working in public service, nonprofit roles, or those whose income makes standard repayment plans challenging.

Managing Your Student Loan Debt

Getting a handle on your unsecured student loan debt can feel challenging as you balance other areas of your life. Below are a few strategies to help you manage your student loans:

•  Make in-school interest-only payments. If you can afford to, consider paying off the monthly interest that accrues while your loan is on in-school deferment. This applies to both unsubsidized federal loans and private loans. Making these small but meaningful interest payments can help you avoid interest capitalization (i.e., paying interest on interest) later.

•  Track when your loan payments are due. Be aware of your loan due dates and minimum payments each month. Late payments or missing a payment altogether can have a negative effect on your credit score, since loan repayment history is reported to the major credit bureaus.

•  See if you qualify for loan forgiveness or loan repayment assistance. The Department of Education offers a few forgiveness and cancellation programs for eligible borrowers with qualifying loans, like the Public Service Loan Forgiveness program for government and nonprofit employees. Some states also offer loan repayment assistance programs to workers in certain professions, like health care, social work, and law.

•  Reach out to your loan servicer or lender. If you’re struggling to make your student loan payment, your loan servicer or lender is your best resource. They can guide you through relief options that are accessible to you, whether that’s getting on a different repayment plan or temporary forbearance.

Choosing the Right Repayment Plan

Choosing the right repayment plan can help you effectively manage student loan debt because it directly impacts your monthly payments, total interest costs, and long-term financial stability. The best plan aligns with your income, career goals, and budget, helping you stay current on payments while avoiding unnecessary financial strain.

Options for student loan repayment include a standard plan, an income-driven option, or refinancing or consolidating your loans. Selecting the right structure can make repayment more manageable and prevent your balance from growing due to accrued interest or missed payments.

Refinancing or Consolidating Loans

Borrowers can also consider refinancing or consolidating their student loans. With a student loan refinance, you replace one or more existing loans with a new loan — typically from a private lender — that may offer a lower interest rate, reduced monthly payment, or different repayment term. This option can save money over time, especially for borrowers with strong credit, but it also means giving up federal protections if federal loans are refinanced.

Consolidation, on the other hand, is a federal program that combines multiple federal student loans into a single Direct Consolidation Loan. While student loan consolidation generally won’t lower your interest rate, it can simplify repayment and may help borrowers regain eligibility for certain federal benefits, such as income-driven repayment or loan forgiveness programs.

Recommended: Student Loan Refinancing Calculator

The Takeaway

Both federal and private student loans are categorized as unsecured debt because they do not require collateral such as a car or house. With federal student loans, you gain access to unique protections that typical unsecured private student loans don’t offer.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

Are student loans considered secured or unsecured?

Student loans are considered unsecured debt, meaning they don’t require collateral from you as a condition of securing the loan. Since there’s no collateral tied to the loan, if you default on the debt, the lender might choose to take you to court in an attempt to collect some or all of the debt.

Is it possible to get a secured student loan?

It may be possible to get a secured student loan, though it’s uncommon. Some private lenders may offer secured education loans that require collateral, such as a savings account or certificate of deposit. These loans can offer lower interest rates, but borrowers risk losing the pledged asset if they fail to repay.

How are federal student loans different from private?

Federal student loans are issued by the government and offer fixed interest rates, income-driven repayment plans, deferment, forbearance, and potential forgiveness programs. Private student loans come from banks or lenders, often require credit checks, may have variable interest rates, and lack the wide range of protections and flexible repayment options federal loans provide.

What happens if you default on an unsecured student loan?

Defaulting on an unsecured student loan can lead to collections, damaged credit, higher costs from fees and interest, and potential legal action. Lenders may garnish wages or place liens depending on state laws. Default also limits future borrowing options, making it harder to access credit or additional student loans.

Do student loans affect your credit like other unsecured loans?

Yes, student loans affect your credit much like other unsecured loans. Your payment history, loan balance, and length of credit history all influence your score. On-time payments can build credit, while missed or late payments can lower your score and remain on your credit report for years.

Photo credit: iStock/DNY59

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOISL-Q425-043

A personal loan can be a relatively low-interest way to access a lump sum of cash, which is usually paid back in monthly payments. This kind of unsecured installment loan (meaning you don’t need to put up collateral) can be used for a variety of purposes. For example, you might pay off high-interest credit card debt, fund a home renovation, or finance a family reunion trip to the beach next summer.

Here, you’ll learn the full story on one popular option, a $10,000 personal loan.

Reasons to Get a $10,000 Personal Loan

Many prospective borrowers are attracted to personal loans because of the freedom and flexibility that they offer compared to some alternatives. Reasons to get a $10,000 loan might include the following:

•   To pay off an unforeseen expense, such as costly car repairs or a major medical bill. (A borrower might use a lesser sum, like a $5,000 personal loan, in some situations.)

•   To consolidate other debts. For example, assume you have a $10,000 balance between two credit cards, each having an interest rate of over 20%. You might be able to secure a $10,000 personal loan with a significantly lower interest rate to pay off that debt.

•   To pay for a home renovation.

•   To start a side hustle.

•   To cover wedding expenses, such as venue costs, catering, or attire, through a wedding loan.

•   Any other legal need for a cash infusion.

Pros and Cons of Taking Out a $10,000 Personal Loan

Consider the pros and cons of taking out a $10,000 personal loan as you explore this option.

$10,000 Personal Loan Terms

Depending on the lender, the repayment periods typically range from 12 months to 84 months.

You can shop around for a personal loan with terms that allow for affordable monthly payments. Keep in mind that a longer term likely means you will pay more interest over the life of the loan.

When calculating the overall costs of a personal loan, consider such factors as the principal amount borrowed, interest rate, fees, and the loan term. You might use an online personal loan calculator to help you tally up costs.

Note: Also keep in mind that some personal loans are secured loans, meaning that you put up collateral which the lender can take ownership of if you default on the loan. Be clear on whether the loan you seek is secured or unsecured.

$10,000 Personal Loan Monthly Payments

Personal loans are typically repaid over a multi-year term through monthly payments. The cost of the monthly payments is influenced by the interest rate that applies to the specific loan. Interest rates are essentially the fees charged by the lender for providing the loan.

The lowest interest rates are typically offered to consumers with a good to excellent credit history and may also be influenced based on other factors including their current income. Generally speaking, lenders charge lower interest rates if they think an applicant is likely to repay their loan in a timely way.

The following chart shows the impact that interest rates have on the monthly payment and also how choosing a longer-term loan can increase the overall cost of the loan.

Personal loan interest rates are generally fixed, which means the monthly payment will remain the same. Variable-rate personal loans are offered by some lenders, and payments will be influenced by market conditions.

Recommended: $20,000 Personal Loan Rates and Requirements

$10,000 Personal Loan Fees

In addition to interest, some lenders charge origination fees that will also increase the overall cost of the loan.

The combination of the interest rate and any applicable fees is the annual percentage rate (APR) of the loan. Calculating the APR is necessary for determining the true cost of the loan. Recent Federal Reserve data shows the average APR of a 24-month personal loan to be 11.14%.

It’s important for applicants to closely review the terms of any potential loan agreement. For example, a lender may charge a late fee when payments are not received on time, and some may have prepayment penalties that apply if a borrower pays off the loan ahead of schedule.

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What Credit Score Do You Need To Get a $10,000 Personal Loan?

Your credit score is a three-digit number that a lender checks to assess your creditworthiness. The most popular credit scoring systems (like FICO® Score) usually range from 300 to 850. Your credit score is calculated largely based on your credit history because past consumer behavior tends to predict the future.

Here are the usual credit score ranges according to FICO:

•   300 to 579: Poor

•   580 to 669: Fair

•   670 to 739: Good

•   740 to 799: Very good

•   800 to 850: Excellent or exceptional

There’s no single credit score needed for getting a personal loan. Keep in mind that a $10k loan is close to the average personal loan amount (the current average is $11,724). Rates may vary depending on the size of your loan.

Can You Get a $10,000 Personal Loan With Bad Credit?

In general, you need a good credit score to qualify for a personal loan. If you have bad credit (say, in the poor or fair range), you might still be able to secure a loan, but potentially at a higher interest rate. If your credit score is in the very good or exceptional range, you may qualify for even more favorable interest rates and terms.

If a personal loan with bad credit is more expensive than you like, you might look into personal loan alternatives, such as a salary advance or using credit cards.

How Long Does It Take to Get a $10,000 Personal Loan?

Personal loans are known for offering fast processing — or funding — times, particularly among online lenders. Many lenders today offer same-day or next-day funding of personal loans after approval. Applicants should be properly prepared with the documentation necessary to confirm their identity, address, and income, as well as current bank statements.

Requirements for a $10,000 Personal Loan

Requirements will vary across lenders. However, qualifying for a $10,000 personal loan typically requires a credit score in the good range, an active checking account, and a steady, verifiable income, among other factors.

Top $10,000 Personal Loan Lenders

Here’s a look at some of the current leading personal loan lenders, along with interest rate ranges.

How to Compare $10,000 Loan Offers

When comparing offers for a $10,000 personal loan, keep these tips in mind:

•  Focus on the APR vs. simply the interest rate to get a better idea of the actual costs of borrowing, with fees included.

•  Look at the total cost of the loan over its term. You’ll see that a longer term typically reduces your monthly payment but means you pay more interest over the life of the loan.

•  Do look into the fees involved, such as origination and late fees, as well as prepayment penalties. These can make a significant difference in some situations, so you want to take out a loan with a “no surprises” understanding.

Tips for Getting Approved for a $10,000 Loan

If you’re thinking about applying for a $10K personal loan, here are some ways to help improve your odds of success. You’ll see that understanding and optimizing your creditworthiness can be an important step.

•  Work on maintaining or building a credit score that’s at least in the good range, if not very good or exceptional for the most favorable terms.

•  Check your credit report for any errors and work to correct any that you find.

•  Calculate your debt-to-income ratio, or DTI, and focus on keeping it below 36% for the best odds of approval.

•  Only borrow how much you actually need, since applications for higher sums can face a more stringent approval process.

•  Gather all of your documentation (such as pay stubs, tax returns, and bank statements) needed for personal loan approval in advance

•  Prequalify for a loan and compare offers carefully.

The Takeaway

If you’re considering a personal loan, it’s a good idea to take the time to compare the various options available and make sure you understand the terms and costs of a loan. Those with lower credit scores are likely to encounter fewer choices and higher interest rates and fees, while those with a strong financial profile may have a number of solid offers to choose among.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What is the monthly payment on a $10,000 personal loan?

The monthly payment on a $10,000 personal loan will fluctuate based on your credit score, the loan’s interest rate and fees, and the term of the loan, among other factors.

Do I need at least a 620 credit score to get a $10,000 loan?

There is no formal minimum credit score needed for getting a personal loan. Different minimums may apply across the various institutions that offer personal loans in the $10,000 range. Those with a 640 or higher credit score are likely to find a number of options for a $10,000 personal loan; those with higher scores may have more options as well as more favorable terms.

How long will it take to get a $10,000 loan?

Fast-funding options including same-day and next-day loans are common for 10,000 dollar loans. As long as you are prepared with some basic documentation that verifies your identity, address, and income, rapid approval and funding may be available.

Photo credit: iStock/Edwin Tan

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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Pursuing a nursing program can lead to a rewarding career, but as the cost of higher education grows, paying for nursing school might just cause your blood pressure to rise.

Financial aid, including nursing student loans, can help fill the gap between money on hand and education costs, but it’s good to think about your future pay compared with the debt you’re willing to take on.

Keep reading to learn more on nursing school loans, the different types of student loans available, and alternative ways to pay for nursing school.

What Are Nursing School Loans?

Nursing school student loans are a type of financial aid available to eligible college students who are enrolled in a program for licensed practical or vocational nurses, registered nurses, nurse practitioners, or nurse anesthetists. They can cover the cost of nursing school tuition, books, and living expenses. Students can rely on both federal and private student loans.

Unlike grants and scholarships, nursing school loans must be repaid, though there may be forgiveness programs and repayment assistance programs available.

Most loan programs, federal and private, have a grace period during school and after graduation before repayment must begin.

How Nursing School Costs Differ from Other Programs

Nursing school often costs more than many other undergraduate programs because of its intensive, hands-on training requirements. Students typically pay additional fees for clinical lab courses, simulation training, medical equipment, uniforms, and licensing exam preparation. Programs also require smaller instructor-to-student ratios in clinical settings, which increases operational costs and is often reflected in higher tuition.

The average cost of nursing school varies heavily depending on the type of program being pursued. Associate degree programs in nursing tend to cost the least and can be completed at a community college. Bachelor of Science in Nursing programs can cost between $40,000 and $80,000, and grad school programs can cost $50,000 to more than $100,000.

Types of Loans Available for Nursing School Students

The Education Department provides options for federal nursing student loans under the William D. Ford Federal Direct Loan Program. Eligible borrowers can also explore private student loans for additional funding, if needed. Here are the types of student loans available for nursing students.

Direct Subsidized Loans

Federal Direct Subsidized Loans are available to undergraduate students who are enrolled at least half-time at a participating school. Students are required to demonstrate financial need to qualify.

If a nursing student qualifies for a Direct Subsidized Loan, the school determines how much they can receive for that academic year (up to a maximum amount). The government pays the interest that accrues on the loan while the student is enrolled at least half-time, during a six-month grace period after leaving school, and during any period of deferment.

In comparing subsidized vs. unsubsidized loans, the first type favors borrowers more, due to how accrued interest is paid.

Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans are available to undergraduate and graduate students. These loans are not based on financial need, but schools (and government caps) still decide how much students can borrow toward an academic year.

The key difference with this nursing loan option is that students are responsible for interest charges as soon as the loan funds are disbursed.

Direct PLUS Loans

Another federal option for nursing student loans is the Direct PLUS Loan. Grad PLUS Loans are available to graduate students who are pursuing an advanced degree like a Master of Science in Nursing.

Parents of an undergraduate student can help fund their child’s education through a Parent PLUS Loan; undergrads don’t have direct access to this loan option.

Direct PLUS Loans are non-need based and require a credit check. Borrowers are responsible for all interest that accrues. They can receive up to the school’s cost of attendance minus any other financial aid received.

Starting on July 1, 2026, though, Direct Grad PLUS Loans will no longer be available. Students will instead rely on Direct Unsubsidized Loans, which will have new annual and lifetime borrowing caps. Parent PLUS Loans will still be an option, but new limits will apply starting on July 1, 2026.

Private Student Loans

Nursing students who need funding beyond federal student loans can consider private student loans. Private student loans are offered by private financial institutions like banks, credit unions, and online lenders.

Each lender has its own eligibility requirements, interest rates, and loan terms. If you’re eligible for a private student loan, your interest rate and loan details will depend on various factors, including your credit score. Most lenders welcome your bringing a solid cosigner aboard.

State-Based Loan Programs for Nursing Students

State-based loan programs offer low-interest loans, tuition assistance, or forgivable loan programs for students pursuing nursing degrees, especially those willing to work in underserved or high-need areas after graduation.

Eligibility requirements, award amounts, and commitments vary by state, so it’s important for nursing students to research local options early in their academic planning.

Pros and Cons of Loans for Nursing School

The average student loan debt among all health care professionals can be eye-opening, yet healers usually feel the need to heed the call, no matter the cost.

Nursing student loans can be a fast way to finance your college education. However, before jumping in, weigh the benefits of student loans against their disadvantages.

Understanding Interest Accrual and Repayment Flexibility

It’s important to understand how interest accrual works when it comes to managing education debt. Federal loans begin accruing interest differently depending on whether they are subsidized or unsubsidized, and this interest can capitalize if left unpaid. With subsidized loans, you’re not responsible for the interest while in school and for six months after graduating. Unsubsidized loans begin accruing interest as soon as they’re disbursed.

Fortunately, federal repayment plans offer flexibility — such as income-driven repayment and extended plans — allowing nurses to align monthly payments with their income and career stage. Choosing the right repayment plan helps limit long-term costs and keeps loan payments manageable as you transition into the workforce.

Applying for Nursing Student Loans

The process to apply for nursing student loans depends on the loan option chosen.

Comparing Loans

If you’re thinking about taking out student loans, the first step is to fill out the Free Application for Federal Student Aid (FAFSA®). This application is used to determine aid including work-study, federal student loans, scholarships, and grants.

When it comes to loans, you might want to compare federal student loans that may be offered in your aid package, as well as private student loans.

Prioritizing federal student loans before private student loans can be a good idea, since federal loans offer advantages like income-driven repayment plans and Public Service Loan Forgiveness, which forgives any remaining federal student loan balance after certain borrowers make 120 qualifying payments.

If private nursing student loans are still needed to pay for college, check offers across multiple private lenders. Comparing a handful of private student loan offers can help you find competitive rates and terms.

Applying for Loans

Federal nursing student loans and private student loans have distinct application processes. As stated above, you must submit the FAFSA before the academic year to see if you’re eligible for federal aid.

Private student loans don’t require the FAFSA. Instead, private nursing student loan applications can be submitted online, in person, or by mail, depending on the lender. They require the would-be borrower, or a cosigner, to meet credit and income requirements.

After Applying

It’s a good idea to start the process early when seeking federal student loans for your nursing education. The time between submitting the FAFSA and disbursement of the loan funds to your school can be months.

The turnaround time after applying to receive private student loan funds can be notably shorter. Getting prequalified for a loan can take just minutes.

In general, if you’re approved for a private nursing student loan, you can expect to wait up to 10 weeks after your loan is approved to receive the funds.

Setting Up Repayment While in School

Setting up repayment while in school can help nursing students stay ahead of their loan obligations and reduce long-term costs.

One easy thing to do is prioritize small monthly payments toward unsubsidized loan interest. Doing this can prevent capitalization, keeping total debt lower after graduation.

Alternative Financing Options for Nursing Students

Securing nursing school student loans is only one of many ways to finance your higher education. Other options include personal loans, grants, employer sponsorship, and more.

Personal Loans

Personal loans are a general-purpose loan option that you may be able to use towards nursing school. Not all lenders allow personal loans to be used for education, though.

Repayment begins as soon as funds are disbursed. Check your rate and decide if a personal loan makes sense. One perk of personal loans is you could get funding within 24 hours of loan approval.

Grants

Grants are provided through the federal government, state, your school, nonprofit entities, and private organizations. Since grant funding doesn’t need to be paid back, this aid alternative lets nursing students leave school with less student debt.

Employer Sponsorship

If you plan on working while you’re enrolled in nursing school, you can ask if your company has a sponsorship program. Generally in this situation, your employer will send funds directly to your school.

Nursing School Loan Repayment Assistance Programs (LRAPs)

Nursing school Loan Repayment Assistance Programs (LRAPs) offer nurses financial relief by helping repay a portion of their student loan debt in exchange for service commitments. These programs are typically available at the federal, state, or employer level and often target nurses working in underserved or high-need areas. Options may include:

•  Nurse Corps Loan Repayment Program

•  National Health Service Corps Loan Repayment Program

•  NHSC Rural Community Loan Repayment Program

•  NHSC Students to Service Loan Repayment Program

Military Programs for Nursing Education Funding

Military programs for nursing education funding provide financial support for students pursuing nursing degrees in exchange for service commitments. Options like the Army Nurse Corps, Navy Nurse Candidate Program, and Air Force Health Professions Scholarship Program can cover tuition, fees, and living expenses. These programs offer both educational benefits and guaranteed career opportunities upon commissioning.

Private Student Loans

As mentioned above, private student loans for health professions can help bridge funding gaps when federal aid, scholarships, and grants aren’t enough to cover tuition and expenses. Issued by banks and private lenders, these loans often require a credit check and may offer variable or fixed interest rates. While they can provide quick access to funding, private loans typically lack the flexible repayment plans, subsidies, and forgiveness options available through federal student loans.

The Takeaway

Nursing students have a variety of student loan options to support their education, including subsidized and unsubsidized federal loans, PLUS loans, and private loans. Students can also rely on scholarships, grants, and employer sponsorships to help pay for nursing school. And finally, once graduated, there are financial relief programs available to help pay back student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

How do nursing students get loans?

Nursing students can see if they’re eligible for federal student loans by submitting the FAFSA. Private nursing student loans are also available through various private lenders.

Can nursing school loans be forgiven?

Nursing professionals might be eligible for loan forgiveness through federal programs like Public Service Loan Forgiveness and the Nurse Corps Loan Repayment Program.

What is the average student loan amount for a nurse?

The median student loan debt among nurses ranges from $40,000 to $55,000, according to the most recent report by the American Association of Colleges of Nursing. Depending on the type of degree they have, though, loans can range from $23,000 to $185,000 or more.

Are there special programs for nurses working in underserved areas?

Yes, nurses working in underserved areas can qualify for programs like the Nurse Corps Loan Repayment Program, which covers up to 85% of nursing education debt, and the NHSC Loan Repayment Program, which supports nurses serving in Health Professional Shortage Areas. Many states also offer their own loan assistance programs for eligible nurses.

Can nurses qualify for Public Service Loan Forgiveness (PSLF)?

Yes, nurses can qualify for Public Service Loan Forgiveness (PSLF) if they work full-time for a qualifying nonprofit or government employer and make 120 qualifying payments under an income-driven repayment plan. Many hospital systems, public health departments, and nonprofit clinics meet the employment requirements for PSLF eligibility.

Photo credit: iStock/erdikocak

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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A flex loan is a line of credit that is unsecured (meaning no collateral is required). It allows you to withdraw funds as needed up to a predetermined limit. As you pay down the balance, you can continue to borrow from the credit line, similar to a credit card.

While flex loans are usually easier to qualify for than more traditional lending products, they typically come with higher annual percentage rates (APRs) and fees. (Note: SoFi does not offer flex loans, but we do offer personal loans.) Here’s what you need to know about flex loans, including how they work, how much you can borrow, and the pros and cons of using a flex loan for fast cash.

What Is a Flex Loan?

Despite the name, a flex loan isn’t actually a loan — it’s an unsecured personal line of credit. Most commonly, you can find flex loans through cash advance companies, though some select credit unions, banks, and online lenders offer them.

Flex loans allow you to withdraw funds from a credit line up to a preapproved limit. You can use the funds in any way you wish. As you pay down the balance, you can continue to borrow from the credit line, similar to a credit card.

Because flex loans typically don’t require a credit check, they can be an attractive option for those who have a poor or limited credit history. But keep in mind: Because lenders assume additional risk by not checking credit, flex loans typically have higher APRs than other lending products, including personal loans, personal lines of credit, and credit cards. For this reason, you may struggle to make payments if interest and fees continue to accumulate.

How Do Flex Loans Work?

A flex loan works similar to a credit card in that it’s a revolving line of credit. Once approved, you’re given a certain credit limit and can borrow up to that amount. As the balance is paid down, that money is once again available to be borrowed.

You’ll receive regular statements showing how much you’ve borrowed and the interest owed, and typically need to make minimum monthly payments. Like a credit card, you may choose to pay only the minimum, or you can pay more. The more you pay each month, generally the less interest you’ll accrue.

Some flex loan lenders charge fees in addition to interest. This may include a flat fee when you take out the loan, as well as periodic fees, which may be daily, monthly, or each time you draw funds from the loan.

How Much Can You Get With a Flex Loan?

The exact amount you’ll be approved for will depend on the lender, as well as where you live, since state laws regulate credit limit amounts. You may be able to borrow anywhere from $100 to several thousand dollars with a flex loan.

Borrowers often turn to flex loans to cover immediate financial needs, emergencies, or hardships, but you can use the loan funds for almost any reason. However, due to the high APRs, it’s generally a smart idea to draw funds from a flex loan only when necessary.

Will a Flex Loan Hurt My Credit?

Getting a flex loan may not require a credit check so applying for one won’t necessarily affect your credit score. But lenders assume extra risk when they don’t do a credit check, so they might charge higher interest to make up for that.

A flex loan may hurt your credit if you don’t manage it responsibly. As with other types of debt, making late payments or missing payments on a flex loan may adversely affect your credit score. It’s a good idea to budget carefully to ensure you’re not borrowing more than you afford to pay back.

Recommended: Personal Loan Calculator

Benefits of Flex Loans

Flex loans may be beneficial for some borrowers. Here’s a look at some of the advantages of flex loans.

Application Process

•   In many cases, you can apply for a flex loan and receive a lending decision within minutes, especially if you apply online.

Access to Funds

•   You may receive access to your funds on the same day as your flex loan approval. Once approved, you can then make withdrawals from your credit line as needed. Funds are typically directly deposited into your bank account.

Credit Score

•   Most flex loan lenders won’t subject you to a credit check, making it less burdensome to qualify for a flex loan even if you don’t have good credit.

Requirements

•   In many cases, flex loans have more lenient requirements compared to other types of loans. In addition to giving the lender your personal details, you may only have to provide proof of employment and income.

Flexible Payment Terms

•   Each month or billing cycle, you can pay the minimum due or more. There are typically no penalties for paying down your debt faster.

Recommended: Typical Personal Loan Requirements Needed for Approval

Dangers of Flex Loans

Flex loans may be an attractive borrowing option because even those with poor credit can borrow money quickly. However, flex loans can present potential dangers.

Interest Rates

•   Flex loans typically carry much higher APRs than traditional lending products like personal loans and credit cards. If you can get a flex loan through a credit union, APRs can range from 24% to 28% or higher. If you get one from a cash advance company, the APR on a flex loan can reach triple digits.

Minimum Payments

•   You have the option to pay only the minimum payments on your flex loan. But if that’s all you pay, fees and interest will continue to grow your debt, making it increasingly harder to pay off the entire balance.

Excessive Debt

•   It can be tempting to borrow money repeatedly with a flex loan, but doing so can come at a high cost. If you continue to borrow money and don’t have a plan to pay down the amount you owe, a flex loan can lead to a cycle of debt that can be hard to break out of.

Risk of Predatory Lending Practices

•   It’s worth noting that some lenders can charge what are considered predatory interest rates, as high as 280% APR vs. an interest rate of, say, 20% you might pay on a credit card. This means borrowers run the risk of being mired in fast-rising debt.

Pros and Cons of Flex Loans

Here’s how the pros and cons look in chart form:

When Should You Take Out a Flex Loan?

A flex loan may be worth considering if you need quick access to cash and don’t want to go through a lengthy application process or can’t qualify for more traditional lending options. A flex loan may also be an option for those who want to have a backup source of funds in case of an emergency, like an unexpected car repair or dental bill.

However, because of the high APRs and added fees, you generally want to consider a flex loan only after exhausting other borrowing options, such as personal loans.

When to Apply for a Flex Loan

There may be other ways to get needed cash without paying interest rates as high as flex loans tend to offer. But if you’ve exhausted all other options, even a loan from a pawn shop, and you have a plan to repay the loan at the lowest possible cost to you, it may be an option you could pursue.

Emergency Expenses

Unfortunately, emergency situations can be part of life. Perhaps you need a major car repair or get hit with a huge dental bill. Or your home’s heating system conks out in the middle of winter. If you don’t have enough in an emergency fund to cover this kind of expense and other financing isn’t available, a flex loan might be an option.

Temporary Cash Flow Gaps

There are times when you may have issues with money coming in and going out. Perhaps you are in between jobs, or you are a seasonal worker and it’s the off-season. In these situations, you may want to access a flex loan to cover bills that need paying.

Alternatives to Flex Loans

Before applying for a flex loan, you may want to consider the following alternatives.

Personal Loan

Even if you have a limited credit history or bad credit, you may still qualify for a personal loan, albeit with a higher interest rate than those with solid credit would likely be offered. It can be worthwhile to see what terms various lenders offer you in this scenario.

Credit Cards

Like flex loans, credit cards are a form of revolving credit you can draw from on a recurring basis. While interest charges for credit cards can be high, they tend to be lower than flex loans. Depending on the card, you may also have an annual fee and other fees based on your use of the account.

Other Options

Here are a couple of other alternatives to a flex loan:

•   Personal line of credit: If you have healthy credit, a personal line of credit may be a worthy alternative because of its typically lower interest rates. However, you will be subject to a credit check, and the application process may take longer compared to a flex loan.

•   Personal loan with a guarantor: If you’re unable to qualify for an unsecured personal loan due to a poor or limited credit history, you might consider asking a friend or family member to help you get a guarantor loan. A guarantor is legally responsible for the repayment of the loan if the borrower defaults, but has no legal claim to any property the funds were used to purchase.

•   Payday alternative loans (PALs) are offered by federal credit unions and may provide an option for a small amount of short-term funding. Interest rates are typically capped at 28%.

Also explore if your employer offers any programs to advance your pay, whether cash advance apps could help, or if a buy now, pay later purchase could help you through a time when money is tight. One last consideration: You might ask a friend or family member for a loan.

Recommended: What Are Hardship Loans?

The Takeaway

Before taking out any type of loan, you’ll want to consider the benefits versus the costs. If you need cash for an emergency, it can be a good idea to look at all your borrowing options before settling on a flex loan due to the high interest rates and fees associated with these loans. (Note: SoFi does not offer flex loans, but we do offer personal loans.) Shopping around is a good way to see what you may qualify for and help you find a lender you feel comfortable working with.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What is a flex loan?

A flex loan is a form of revolving credit that allows you to withdraw funds up to a certain credit limit. As you pay down your balance, the funds become available to borrow again.

How much can you get with a flex loan?

Borrowing limits for flex loans will depend on the lender and where you live, since state laws regulate credit limit amounts. You may be able to borrow anywhere from $100 to several thousand dollars with a flex loan.

Will a flex loan hurt my credit?

Applying for a flex loan typically won’t affect your credit because lenders typically don’t do a credit check when you apply for the loan. However, lenders may report your borrowing activity to the major consumer credit bureaus. As a result, any late or missed payments could negatively affect your credit.

When should you avoid a flex loan?

There are a few scenarios when it can be wise to avoid a flex loan. One case is when the interest rates are excessively high; this can lead to getting deeper in debt. Also be cautious if you feel you don’t have good self-control when it comes to spending. A flex loan could be a path to owing more rather than repaying your debt.

Are there better alternatives to flex loans?

There can be better alternatives to flex loans. You might see what interest rate you are offered for a personal loan or how much it would cost to use a credit card. Or you could investigate payday alternatives loans (PALs), which are offered by federal credit unions at more favorable rates. Cash advance apps, employer paycheck advances, family loans, a personal loan with a guarantor, and buy now pay later purchasing can also be helpful options.

Photo credit: iStock/PeopleImages

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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