May
06
2026
A man sits on a couch before a laptop, touching the tip of his eyeglasses’ arm to his lips in a thoughtful manner, as he intensely studies a piece of paper in his left hand.

Loan Maturity Date: What It Means and Why It Matters

By | Financial Independence, personal_loan, Terminology | Comments Off on Loan Maturity Date: What It Means and Why It Matters

The maturity date for an installment loan like a personal loan is the date on which you should be finished paying off your loan, assuming all payments are made on time and in full. It’s important to mark this day on your calendar, not only so you can celebrate successfully paying back your debt, but also because it can tell you important information like how much you’ll ultimately end up paying in interest.

Here’s a look at how to figure out the maturity date for your personal loan, and other important loan terms you should know.

Key Points

•  The maturity date of a personal loan indicates when the borrower will have fully repaid the loan principal and any accrued interest.

•  This date is specified in the loan agreement and is determined by the loan term, typically ranging from 12 to 60 months or longer.

•  Borrowers can pay off their loans early to save on interest, but should check for any prepayment penalties that may apply.

•  The maturity value of a loan includes both the principal and total interest paid, calculated using a specific formula.

•  Timely payments ensure no obligations remain after the maturity date; otherwise, borrowers should contact their lender to discuss repayment options if needed.

What Is a Maturity Date On a Loan?

The term “maturity date” can be used with loans or investments. In investing, it refers to the day on which you’ll receive the money you invested, for example, in a savings bond or certificate of deposit (CD). You’ll get your investment back, plus any remaining interest that’s due to you.

If you’re a borrower, the maturity date of loans is the day a lender has scheduled for loaned funds and any interest to be paid off in full. Provided you’ve made regular and timely payments throughout the term of the loan, you’ll have no further obligation to the lender after the maturity date.

If, for whatever reason, you still have a balance after your loan maturity date, you’ll want to talk to your lender and work out a plan to pay off the remainder of your loan.

Recommended: What Is a Personal Loan?

How Does the Loan Maturity Date Work?

Your loan’s maturity date is a part of your initial loan agreement. So “What is a maturity date on a loan?” is not a question you should be asking midway through the loan process. You can find the maturity date on your loan contract. For example, say you take out a $10,000 personal loan on June 1, 2026 with a 36-month term. The loan maturity date will be 36 months later, on June 1, 2029.

It is possible to pay off your loan early before the loan maturity. This can save you money in interest payments. However, be mindful of whether your lender charges prepayment penalties. These penalties can outweigh the advantages of paying off your loan early.

Why Is the Loan Maturity Date Important?

The maturity date of a loan is its last major milestone. But choosing the personal loan term length that dictates the maturity date is an early step in the loan process. The maturity date is important because the length of time you have to pay off a loan, along with the loan amount and interest rate, are the things that determine your borrowing costs.

Length of a Personal Loan Maturity Date

The loan term is usually calculated in months. You can often find personal loans with terms from 12 to 60 months, and some lenders will offer loans with terms of up to seven years or longer.

The longer your term, the longer you’ll be paying interest, which generally makes longer-term loans more expensive for borrowers. When choosing a loan, you may want to consider one with the shortest term (and closest maturity date) possible, as long as you can comfortably afford the monthly payments.

Calculating Your Loan Maturity Value

A loan’s maturity value is the sum of what you’ve borrowed plus all of the interest you’ve paid (or will pay) on the loan. The maturity value (MV) formula is:

MV = P + I

Where “P” is the principal amount of the loan (the amount you borrowed) and “I” is the loan’s annual percentage rate (APR).

For example, say you take out a $10,000 personal loan with a 36-month term and 12% APR. In this case P = 10,000 and I = 12%. You would multiply $10,000 by .12 to arrive at the interest, or I — in this case: $1,957.15.

Then you would add the principal and interest to learn your maturity value, like this:

MV = $10,000 + $1,957.15
MV = $11,957.15

You can sidestep all the math by using a personal loan calculator to quickly compute the total costs of borrowing.

What Is an Amortization Schedule?

Your loan’s amount, term, and interest rate will be used to determine the amortization schedule that you may receive when you sign up for a personal loan. The schedule lists each loan payment’s total amount and how much of each payment is applied to interest vs. the loan principal. The amount you pay toward your loan each month will likely be fixed. But the portion of each payment that goes to principal vs. interest will change, with more of the payment going toward interest in the early months of the loan’s term.

If you refinance a personal loan, you’ll get a new maturity date, interest rate, and amortization schedule.

What Happens at the Personal Loan Maturity Date?

At the personal loan maturity date, you will make your final loan payment. Provided you have stayed on track with all of your payments, you will have fully paid off all of your loan principal and whatever interest you owe and have no further obligation to your lender.

If you think you’ll have trouble making any of your loan payments on time, it’s a good idea to reach out to your lender immediately and see if there’s anything it can do to help. The lender may allow you to pay at a later date.

Recommended: What Happens If You Default on a Personal Loan?

Other Key Loan Terms to Know

In addition to maturity and the principal amount, you’ll find other useful information on your personal loan agreement.

Loan Interest Rates

The interest rate is the amount that your lender charges you to borrow, and it’s the main way that lenders make money. Most personal loans rates are fixed interest rates, meaning the rate will not change over the life of the loan. The average personal loan interest rate is currently 11.40%. But rates will vary depending on your credit score.

Variable rate loans, on the other hand, carry interest rates that are usually pegged to a market interest rate. As a result, they can change over the life of the loan.

There may also be hybrid situations in which a loan starts with a fixed interest rate for a period of time, after which it switches to a variable rate. If market rates have gone down, this can be a good thing for borrowers. But if they’ve gone up, a variable-rate loan could be more expensive than its fixed-rate counterpart.

Recommended: What Is an Installment Loan and How Does It Work?

Monthly Loan Payments

You’ll be able to find the amount you owe each month on your personal loan agreement. Your loan payment should be the same over the course of your loan unless you have a variable interest rate.

Prepayment Penalties

If you’re wondering whether you can pay off a personal loan early, the answer is yes. Whether or not it makes sense to do so will depend on your loan agreement and the details of any prepayment penalties. Lenders may charge a fee based on the amount of interest you would have paid had you continued with regularly scheduled payment, or they may charge a flat fee or percentage of your remaining balance.

To avoid a prepayment penalty, read your loan agreement carefully before committing to a loan, as lenders handle prepayment differently. If you are midway through the life of the loan, it still pays to look at the loan agreement. Some lenders’ agreements allow a partial prepayment, which would reduce your interest costs. It’s possible the penalty will be less than the interest you would pay if you stuck with the payment schedule. Contact your lender to see if you can negotiate a reduced or waived penalty.

Paying off your loan early could hurt your credit score somewhat, as you will stop making regular payments on the loan and your credit utilization will change. However, if you can save money on interest by paying off the loan, it’s still a smart move to do so. Keep up the good financial habits that helped you pay the loan off early and your credit score should recover.

The Takeaway

For an installment loan like a personal loan, the maturity date of loan is the day of the final loan payment. This date is set based on the loan’s repayment period — how long you have to repay the loan, including both principal and interest. A personal loan is typically considered to have short- to medium-term maturity, since terms generally run from a few months to seven years.

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.


SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

What happens if the loan is not paid by the maturity date?

If your loan is not paid by the maturity date, you’ll need to work with your lender to come up with an extended repayment plan. If your last loan payment is late or your loan is in default, you may face penalties and your credit score may be negatively affected.

What is the maturity date on a loan?

The maturity date on a loan is the date by which a borrower has agreed to pay off the loan principal and interest in full. You generally make your final loan payment on the maturity date.

When is the maturity date on a loan?

The maturity date on a loan is the date when your final payment is due. It is based on the term of your loan. If you take out a personal loan on June 1, 2026 and the loan has a 36-month term, for example, the maturity date will be June 1, 2029.

Can you change the maturity date on a loan?

It may be possible to extend the maturity date on your loan through a process called loan modification. This is most often done in cases of financial hardship, when extending the date can help make payments more manageable. You could also consider refinancing the loan; though this is often done to obtain a lower interest rate, it could also allow you to make your loan term longer or shorter.

How does the loan maturity date affect my monthly payments?

The loan maturity date is the end point of your loan term, the number of months you have to repay what you have borrowed, with interest. The longer your loan term, the lower your monthly payments will typically be, but the more interest you will pay over the life of the loan. So a close-in maturity date usually means higher monthly payments and lower total interest.

Photo credit: iStock/Pekic

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.


Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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May
05
2026
Two women with coffee cups looking at a laptop together in a bright kitchen.

Exploring Whether or Not Personal Loans Are Bad

By | Debt Payoff, Financial Independence, personal_loan | Comments Off on Exploring Whether or Not Personal Loans Are Bad

Personal loans are a type of lending instrument offered through banks, credit unions, and online lenders. They’re paid back, with interest, in installments, and there are few limitations on how the loan funds can be used. They’re also typically unsecured, meaning you don’t have to put up any property as collateral for the loan.

A personal loan is an important financial tool if you can find one from a reputable lender at a reasonable interest rate, and you can commit to making loan payments on time. However, if you only qualify for a loan with a high interest rate or you feel you may have trouble paying it back, you may want to think twice before applying.

Key Points

•   Personal loans can be beneficial for consolidating high-interest debt or funding home improvements if you qualify for favorable rates.

•   Downsides include fees, higher interest rates compared to secured loans, and the risk of increasing overall debt.

•   No-credit-check loans are often predatory and can trap borrowers in cycles of debt due to extremely high interest rates.

•   Taking out a personal loan for discretionary spending or investing is generally not a good idea due to financial risk.

•   Before applying, compare alternatives such as home equity lines of credit (HELOCs) or 0% APR credit cards to determine an option that fits your needs.

Are Personal Loans Bad?

Not necessarily. There are both advantages and disadvantages to personal loans. Here’s a look at some of the benefits of taking out a personal loan:

•   Personal loans generally offer a wide range of borrowing limits, typically between $1,000 and $100,000.

•   There is flexibility in how the funds can be spent, unlike with a mortgage, which you must use to buy a house, or an auto loan, which must be used to purchase a car.

•   Proceeds from personal loans can be used for a variety of purposes, from paying down credit card debt to making home improvements and more.

•   Unsecured personal loans are offered by many lenders. There is no need to put any of your assets up as collateral for the loan, nor do you risk losing them should you default.

It’s important to weigh these benefits against potential disadvantages and determine whether it’s bad to get a personal loan for your financial needs. Here’s a look at some of the downsides of taking out a personal loan:

•   Personal loans may not offer the lowest-cost borrowing option. For example, you might be able to get a better rate on a home equity loan or a HELOC if you have enough equity in your home. That said, both of those lending instruments use your house as collateral, so if you default, you could risk losing your home.

•   Personal loans sometimes have fees or penalties that can increase the cost of borrowing. For example, origination fees on personal loans tend to be between 1% and 10%. Some lenders may charge prepayment penalties to ensure they don’t lose future interest payments if you repay your loan early.

•   When you take out a personal loan, you’re increasing your overall debt. If you have other debts, comfortably affording all your monthly payments can become a challenge. And missing payments or making late payments can have a negative impact on your credit score.

Recommended: What Is Considered a Bad Credit Score?

Pros and Cons of Personal Loans

Here’s a look at the pros and cons of personal loans at a glance.

Pros of Personal Loans Cons of Personal Loans
Wide range of loan amounts, usually between $1,000 and $100,000. Interest rates may be higher than those of other types of loans, such as home equity loans or HELOCs.
Use of funds is flexible. Borrowers can use money from personal loans toward almost any purpose. Fees and penalties can make borrowing more costly.
They are generally unsecured loans, which is beneficial to those who don’t want to put up collateral. They increase your debt, potentially putting a strain on your budget.

When Can It Be a Good Idea to Get a Personal Loan?

So when is a personal loan a good idea?

Debt Consolidation

One reason to take out a personal loan is to use it as a credit debt consolidation loan to pay down high-interest credit card debt. The average credit card interest rate as of April 2026 is 19.16%. The current average personal loan interest rate as of May 2026, on the other hand, is 12.27%. If you have excellent credit, you may pay less, and if you have poor credit, you could pay more.

Consolidating high-interest credit card debt with a lower-interest-rate personal loan may make your monthly payments more manageable and potentially save you money in interest payments over the life of the loan.

If you use a personal loan to pay off credit card debt, it’s a good idea not to use those credit cards to incur even more debt.

Home Improvement

Using a personal loan to make improvements to your home may also be beneficial, as home improvements can increase the value of your home, possibly offsetting the cost of borrowing.

When Can It Be a Bad Idea to Get a Personal Loan?

There are a number of cases where you may wonder if getting a loan is bad. Here’s a look at some situations where getting a personal loan may not be a good idea.

No Credit Check Loans

Most loans — including most personal loans — require a credit check. This helps your lender understand your creditworthiness, or how likely you are to repay your debts. Generally speaking, the healthier your credit, the more favorable your loan interest rates and terms. Those with poor or limited credit may find it difficult to qualify for a loan.

No-credit-check personal loans, on the other hand, look at your bank account balance or require you to pledge some asset as collateral to secure the loan.

The problem is that these loans also tend to be extremely expensive — interest rates can well exceed 100%, which is generally considered to be predatory. There’s a pretty good chance that borrowers who rely on no-credit-check loans won’t be able to pay their bills on time, which could trap them in a cycle of debt.

Recommended: How to Avoid Falling Victim to Predatory Loans

Cheaper Alternatives May Be Available

Before taking out a personal loan, consider whether there are cheaper alternatives. We’ve already mentioned home equity loans and HELOCs. You might also consider a no-interest credit card, which charges 0% interest for an introductory period typically lasting between 12 and 21 months. If you can pay down your debt in this period, this may be a good option. But whatever balance you don’t repay in time may revert to the card’s regular rate, which is likely high.

You Are Not Good at Managing Debt

If you’re not good at managing debt, think twice before taking on more. And if you use your personal loan to consolidate credit card debt, you’ll want to be careful about racking up new credit card bills.

Discretionary Spending

Borrowing money for discretionary spending, such as vacations or an engagement ring, generally isn’t a good idea. While these things are nice, they aren’t necessarily worth jeopardizing your financial well-being. Instead of borrowing to pay for big-ticket items such as these, you may be better off saving for them in advance as a part of your regular budget.

Borrowing Money for Investments

It’s generally not a good idea to borrow money to make investments. By nature, investments are risky, and you’re not guaranteed a return. Should the investment lose money instead of gaining, you’ll be responsible for repaying your debt, regardless of the investment loss.

The Takeaway

So are personal loans bad? The answer depends on how you plan to use the loan. Personal loans can be useful tools for purposes such as consolidating credit card debt, making home improvements, and more.

Any time you’re considering a loan, it’s important to understand whether it will meet your needs, what it will cost you, and whether there are any better alternatives out there.

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.


SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

Do personal loans hurt your credit?

They can, at least at first — a new loan adds to your overall debt and means a hard credit check. If you miss payments, your score will drop, but making on-time payments helps you stay on track.

When is getting a personal loan a good idea?

It can be a good idea when you’re consolidating high-interest credit card debt, since personal loan rates are usually lower. It’s also common to finance home improvements that could boost your home’s value.

When is getting a personal loan a bad idea?

It’s usually a bad idea if you already have a lot of debt or can’t comfortably afford the monthly payment. You should also avoid no-credit-check loans with very high rates and skip borrowing for vacations or investments.

What are the risks of taking out a personal loan?

You’ll often pay an origination fee of 1% to 10%, and some lenders charge a fee if you pay early. Because the loan is unsecured, the rate may be higher than a secured option, and you’re adding to your total debt.

Photo credit: iStock/Morsa Images

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.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPL-Q226-003

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May
05
2026
A woman in a dark green shirt and jacket sits at a table and searches for a personal loan on her laptop in her kitchen.

Applying for a Loan Online vs In Person: Comparing the Differences & Similarities

By | Financial Independence, personal_loan | Comments Off on Applying for a Loan Online vs In Person: Comparing the Differences & Similarities

As you’re shopping around for the best terms and rates on a personal loan, you may wonder: Is it better to apply for a loan online or in person? While both options can lead you to securing a personal loan, the process and even the fees and rates can differ for an online loan application vs. in person.

If you need help deciding which option to go with, this guide can help you figure out whether you should look at applying for a loan online vs. in person.

Key Points

•   Online personal loans offer faster approval and funding, with many lenders providing same-day decisions.

•   In-person loans may offer more personalized support and, potentially, better rates if you have an existing relationship with the bank.

•   Applying online is generally more convenient for tech-savvy borrowers, while those seeking personalized guidance may prefer in-person applications.

•   Both options are secure, but your comfort level with sharing personal data online may influence your choice.

•   The best option depends on your preferences and where you can find the most competitive terms and rates.

What Is an Online Personal Loan?

An online personal loan is a type of installment loan that you borrow and agree to pay back with interest. Personal loans are usually unsecured loans, which means you don’t have to put up collateral (such as a house) to be able to get the loan. Since unsecured loans pose more risk to lenders, their interest rates tend to be higher compared to secured loans.

Personal loans are known for being flexible, and there are several ways to use a personal loan. You can use one to consolidate credit card debt or pay for home renovations, medical expenses, a vacation, a large purchase, or just about any other personal expense.

An online personal loan acts like a regular personal loan, with the only difference being that the lender has a presence online. Online loans can come from traditional banks, or they may come from lenders who only operate online.

What Is an In-Person Personal Loan?

Getting an in-person personal loan allows you to obtain a personal loan with the assistance of a bank or credit union employee. They can help you through the process. From collecting documents to submitting your loan application, there’s a lot of attention that an employee can give you when you apply for one of the different types of personal loans.

💡 Quick Tip: Not sure what certain loan terms mean? Check out the Personal Loans Glossary for a simple guide to the basics.

Applying for a Loan Online vs In Person

Applying for an online personal loan has never been easier or faster. Technology automates much of the process, so you can know what the lender’s decision is fairly quickly — often on the same day.

Beyond the ease with which you can apply for a loan online or in person, there are a number of other factors you’ll want to consider.

Fees

Fees and rates can differ from loan to loan. Shopping around for rates and fees is going to help you compare personal loan interest rates and find the lowest personal loan origination fees and APRs out there.

While you might see low rates for online lenders, you may also be able to negotiate a low rate with the bank representative. Sometimes, having an existing relationship with the bank can help you get a lower interest rate or even help with getting approved for a personal loan.

Approval Process

When you get to the approval process, an online loan application vs. one in person is going to be faster. This is because technology automates much of the process for approval when you apply online. Sometimes, you can receive a decision — or even funding — on the same day.

With an in-person application, you can expect to wait several days or even longer for loan approval and disbursement. Plus, not as many banks and credit unions allow you to prequalify like online lenders often do, which can give you an idea of your odds of approval and your potential rate without impacting your credit score.

Convenience

If you’re the type that can quickly fill out information online and upload documents with ease, you may just want to apply online. However, if you would prefer some help through the process of applying for a personal loan, you may consider finding a physical location of the bank or credit union instead.

Security

When it comes to security, applying online for a personal loan is as safe as any other online transaction. Yet that might not make you feel comfortable enough to do it. If you’re not confident in transmitting personal information over the web, you might consider visiting a branch location to apply for a personal loan.

Personalized Support

Support can be seen as more attentive at an in-person branch. You can have your issues heard, and the bank employee can explain things like the personal loan principal and the personal loan maturity date so they make sense.

Online support can be hit or miss, depending on the company. This is one area where an in-person experience might make you happier.

Which Is Better: Applying for a Personal Loan Online or In Person?

If you value personalized attention, you might prefer to apply for a personal loan in person. On the other hand, if you’re tech-savvy and appreciate the speed and savings an online lender can offer, you may prefer to apply for a personal loan online instead.

At the end of the day, you’ll see advantages with each option, whether you choose to apply for a loan online or in person. What’s really important is to find a loan with the most competitive terms and the lowest rate.

The Takeaway

Applying online for a personal loan may allow for a faster approval and funding process, plus you can complete the entirety of the application from the comfort of your home. If you’d rather have someone there to walk you through the process and you have a longstanding relationship with your bank or credit union that you think could favorably impact the terms you receive, then applying in person might be better. Ultimately, it comes down to personal preference — and where you can get the best offer for a 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.


SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

Is applying for a loan online safer than applying for a loan in person?

Applying for a loan online is considered as safe as applying for a loan in person. If you’re worried about sharing your personal information online, you can go into a credit union or bank branch and apply in person.

Is there a difference in cost when applying for a loan online vs in person?

Whether you’re applying for a loan online or in person, it’s a good idea to shop around for the best rates and terms. Online lenders may have lower overhead costs and be able to pass those savings on to customers. On the other hand, banks where you apply in person may be able to offer rate or fee discounts for existing customers.

Is it quicker to apply for a loan online or in person?

In most situations, it’s quicker to apply for a loan online than in person. Processing is generally faster, too.

Photo credit: iStock/fizkes

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.


Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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May
04
2026
A modern room with a gray sofa with a teal throw blanket and two cushions, a matching side table, and other decorative items.

33 Inexpensive Ways to Refresh Your Home Room by Room

By | Home Ownership, mortgage | Comments Off on 33 Inexpensive Ways to Refresh Your Home Room by Room

The change of seasons often brings on a flurry of cleaning and a home refresh. If you’re looking for some budget-friendly changes that will bring new life to your rooms, we have those for you.

Before you start, try to clear any clutter you may have. If you tend to hoard, begin your refresh by donating or throwing away items you no longer use. You may also want to review our list of home improvements that can increase the value of your home.

Key Points

•   A coat of paint, strategic lighting, statement pieces, and simple decor can enhance the style and functionality of your living room.

•   You can update your kitchen on a budget by repainting cabinets, improving storage, upgrading small fixtures, and adding decorative yet practical elements.

•   Low-cost changes such as new hardware, updated mirrors, and fresh accessories can give your bathroom a fresh new look.

•   By updating paint, linens, and lighting and adding features such as rugs and smart storage solutions, you can create a relaxing bedroom.

•   Small changes across all rooms, such as decluttering, rearranging furniture, and adding affordable decor, can significantly transform your space without a full remodel.

Living Room

Whether you’re entertaining guests or just hanging out, your living room should feel inviting and reflect your style, yet also be functional and versatile.

1. Paint

A fresh coat of paint can do wonders for any living space. Picking neutrals, such as white or beige, ensures a clean and timeless look.

2. Statement Furniture

If you don’t have the budget to buy all new furniture, you may want to consider picking one or two new pieces, such as an eye-catching chair or coffee table, that will update your space.

3. Area Rug

A quality rug can anchor a room and add a subtle splash of color. It’s also a good idea to make sure it’s sturdy enough to handle high traffic. Adding a rug pad can be worth the additional cost because it feels luxe underfoot and prolongs the life of your rug.

4. Lighting

How you light a room can affect its overall feel. Installing dimmers can enable you to adjust the lighting depending on the mood you’re trying to set. A new floor or table lamps can also allow you to subtly adjust lighting.

5. Clutter Containment

If you still have a lot of “stuff” after your initial purge, you may want to consider storing it in decorative receptacles, such as woven baskets or a storage ottoman. This is especially useful for kids’ toys.

6. Framing

Buying nice frames to create a gallery on blank walls, or even just to display family photos on a side table, can really personalize your space. Consider a digital photo frame for convenient streaming.

7. Window Treatments

Blinds or curtains can add depth to a room. The most affordable option is to buy premade curtains and rods from a home decor store and install them yourself. Measuring carefully is the key to success.

8. Sofa Spruce-Up

Purchasing a bold couch cover and swapping out your throw pillows can be a quick and inexpensive way to add color and patterns to your space. Toss a blanket over the arm of the sofa for both added texture and warmth.

9. Go Green

Plants have always been a simple and effective way to bring life into a space. Good news if you don’t have a green thumb: You can now download an app (Planta is one example) that will help you remember to care for them properly.

10. Switch It Up

Looking for a zero-cost home refresh option? You can try rearranging your furniture. Using apps such as Modsy for floor plan ideas can help you find options that complement your lifestyle and make the most efficient use of your space.

💡 Quick Tip: A home equity loan from SoFi lets you access up to $750,000 of your home’s equity (up to 85%) to pay for, well, just about anything. It could be a smart way to consolidate debts or find the funds for a big home project.

Kitchen

Dreaming about that perfect Home & Garden Television kitchen? You can use our calculator to estimate just how much a full remodel may cost you. (Hint: The average cost of a kitchen remodel taps in at more than $50,000.) Never fear: You can still refresh your kitchen with some of the following affordable upgrades — no permits or contractor required.

11. Cabinet Facelift

If your cabinets are looking dated, you may want to try putting a fresh coat of paint on them. For an added touch, consider changing out the hardware and installing new handles and drawer pulls.

12. Seat Swap

You may want to consider upgrading worn or outdated bar stools in exchange for something sleeker. If purchasing new stools isn’t in your budget, get out your staple gun and try changing the upholstery.

13. Appliance Upgrade

If your appliances aren’t working as well as they used to, or they’re nearing the 10-year mark, it may be time to replace them. Although this can get expensive, you can find bargains on bundles, especially during holiday sales, and some outlet stores offer steep discounts on open-box appliances.

14. Fill a Wall

If you have unused wall space, you may want to consider installing floating shelves for smaller items, such as cookbooks, plants, and other knick-knacks. Not only will the extra shelving provide more storage in your kitchen, but it can also create an eye-catching display.

15. Light It Up

For a style update with a big impact, you can look into replacing old lighting fixtures with modern pendants. They come in such a wide variety of styles and price points that there’s something for just about anyone’s taste and budget.

16. Combine Decor With Utility

It’s easy to warm up a space with an attractive fruit bowl, a colorful wall clock, or a pretty serving tray. If you’re adding a TV to your kitchen, consider one that will display art or photos when you aren’t watching your favorite shows.

17. Streamline Storage

Your storage areas can also be the focus of a spring upgrade. Toss expired foods from your pantry and do a deep clean of your fridge and freezer. If you want to really get organized, consider storing your dry goods and refrigerated items in clear canisters and bins for easy identification and access, and using drawer dividers to separate utensils.

Recommended: Interior Decoration Tips for Furnishing a New Home

Bathroom

In an ideal world, a bathroom remodel would include a new vanity, tile, and hardware. However, even if a demo is more idealistic than realistic, that doesn’t mean this space is out of bounds. Start small with a few less costly changes.

18. Hardware Update

Replacing your outdated sink, bath, and shower hardware can boost the appeal of just about any bathroom. By adding matching towel racks, door hooks, and vanity knobs and handles, you can achieve a cohesive upgrade that doesn’t break the bank.

19. Target: Toilet

If your porcelain throne is starting to show wear and tear, it may be time to replace the lid and seat. You can go all in and buy a new toilet for just a couple of hundred dollars, although you’ll likely need a plumber as well.

20. Mirror Modern

If you have a long vanity with two sinks, you may want to consider installing two separate mirrors with bold frames. Mirrors with LED backlighting offer a more modern hotel-like look.

21. Shower Showcase

The shower curtain is one of the first things people see when they walk into a bathroom. Introduce a new look by finding a curtain with a cool pattern and adding a new curtain rod and rings.

22. Spa Retreat

A bamboo bath mat that’s easy to clean and water-resistant can elevate your space. So can candles or a diffuser. Add attractive shelving — or simply swap in plush new towels — and you’ll instantly create a serene scene that could compete with any day spa.

23. Accessorize

Placing your soap dispenser and toothbrush holder on a decorative tray easily gives your bath a tidy boost. Take a good look at all the personal care products that are visible in your space. Stow unattractive or less frequently used products in drawers, and make sure what’s still visible is in attractive containers.

24. Grout Out

No budget for new tiles? Put some elbow grease into cleaning the grout on your existing tile floor and walls, or regrout the entire space for a cleaner, brighter look.

💡 Quick Tip: You never know when you might need funds for an unexpected repair or other big bill. So apply for a HELOC (a home equity line of credit) brokered by SoFi today: You’ll help ensure the money will be there when you need it, and at lower interest rates than with most credit cards.

Bedroom

Your bedroom should be your haven after a long day of work, but you don’t need to do a complete bedroom remodel to reap more relaxation. Just make a few changes to create a more peaceful setting.

25. Headboard

For a few hundred dollars, you can find an upholstered headboard that’s both fashionable and easy to assemble. It can create a dramatic difference in your bedroom’s appearance.

26. Paint

It’s pretty easy to refresh your walls over a weekend. If you want to liven up your space with some color, stick with soft hues, such as pale blue or gray. For the I-hired-a-decorator feel without the price tag, consider removable wallpaper.

27. New Linens

To quickly liven up a boring bed, you can replace old sheets, blankets, and pillows. Opt for soothing colors and muted patterns that will create a peaceful sleeping environment.

28. Floors

Whether you have wooden floors or carpet, layering an area rug can help to create a cozy environment. For a luxurious feel, try shag or sheepskin rugs.

29. Lighting

Designing a unique lighting setup doesn’t have to be hard or expensive. You may be able to freshen up your space by installing plug-in sconces (which require no rewiring) on each side of your bed. It can save table space and add decor to your wall.

30. Side Tables

For a budget-friendly furniture refresh, just replace your bedside tables. Look for a pair with concealed storage to cut down on the cluttered look.

31. Closet Clutter

Custom closets can get expensive very quickly. But you can get your closets under control by installing affordable hanging bars and shelves that not only look good but also help you organize your wardrobe.

32. Floor Mirrors

A full-length floor mirror will reflect light and make your room feel bigger — not to mention that it comes in handy when you’re pulling together your daily outfit.

33. Art and Photos

Many designers suggest thinking of your walls as a blank canvas to display your style and the people you love. You can achieve this by hanging your favorite photos or artwork in eye-catching frames.

What Is Your Home Missing Quiz

The Takeaway

Even small changes can make your home feel new again. Figure out how much you want to spend on your home refresh before you start so you can prioritize which changes are most important to you. Stay within your budget by choosing upgrades that you can do yourself, shopping at secondhand stores, and comparing prices carefully.

SoFi now offers home equity loans. Access up to 85%, or $750,000, of your home’s equity. Enjoy lower interest rates than most other types of loans. Cover big purchases, fund home renovations, or consolidate high-interest debt. You can complete an application in minutes.

FAQ

What is the easiest way to refresh a home on a budget?

A fresh coat of paint and decluttering can instantly transform any space without costing much. Rearranging furniture and adding simple decor, such as cushions or plants, can also make a big impact.

Which rooms should I prioritize first when updating my home?

Focus on high-traffic areas, such as the living room and kitchen, as these spaces are used the most and create the biggest impression. Small, affordable updates there can make your entire home feel refreshed.

How can I update my home without buying new furniture?

You can restyle what you already have by rearranging layouts, swapping accessories, or using covers and throws to give furniture a new look. Do-it-yourself upgrades, such as painting or changing hardware, can also make old pieces feel new again.

Photo credit: iStock/KatarzynaBialasiewicz

* Same-Day Personal Loan Funding: 82% of typical SoFi Personal Loan applications, excluding Direct Pay Personal Loans and Personal Loan refinance, from January 1, 2022 to January 1, 2023 that were signed before 7pm ET on a business day were funded the same day.

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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.


²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.
You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.
In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.


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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.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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A pregnant woman with long dark hair sits on a white couch covered in fluffy pillows, a phone in hand and a glass of milk on the coffee table nearby.

How to Get a $20,000 Personal Loan: Requirements, Rates, and Tips

By | Budgeting & Goals, Financial Independence, personal_loan | Comments Off on How to Get a $20,000 Personal Loan: Requirements, Rates, and Tips

You’ll likely need a credit score in the Good range (670 to 739) or higher to qualify for a $20,000 personal loan with a competitive interest rate. If your credit rating is Poor or even on the lower end of Fair, you may have difficulty getting approved for a personal loan of that size.

Personal loans offer relatively low interest rates compared with other options, such as high-interest credit cards. Ultimately, the interest rate will depend on the size of your loan, the term, and your credit score.

Here’s a closer look at what it takes to apply for a personal loan and how to get a personal loan with the best available interest rate.

Key Points

•   A minimum credit score of 670 to 739 is typically required for a $20,000 personal loan.

•   Proof of steady income, including pay stubs, tax returns, and bank statements, is essential.

•   Applicants must be at least 18 years old and legal U.S. citizens.

•   A debt-to-income ratio below 36% enhances loan approval chances.

•   Hard credit inquiries can temporarily lower a credit score by a few points.

What Is a $20,000 Personal Loan?

Let’s start with the basics: A personal loan is money you borrow from a bank, credit union, or online lender, which you then pay back in regular installments with interest over a set number of years. You can use the funds for nearly any purpose, but many borrowers choose to put the money toward consolidating debt, paying for home repairs, or covering an unexpected expense.

💡 Quick Tip: Planning your dream wedding? A $20,000 wedding loan can help cover venue costs, catering, attire, and more—allowing you to focus on enjoying your big day.

Why Choose a $20,000 Personal Loan

A personal loan for $20,000 has some advantages over other financing options, such as high-interest credit cards.

•   Flexible terms. With a $20,000 personal loan, you may be able to select the repayment terms that best fit your budget and financial goals. You’ll also likely have a fixed interest rate. This means you’ll pay the same amount each month over the life of the loan, which can be easier to budget for.

•   Competitive interest rates. A strong credit profile and steady income can help you qualify for the lowest rate available. Shop around to ensure you get the best deal.

•   Fast, easy application process. Compared to some other financing options, applying for a personal loan is a relatively simple process. To avoid hiccups, make sure you understand your options, meet the lender’s personal loan requirements, and gather the necessary paperwork ahead of time.

Recommended: What Are Personal Loans Used For?

What to Consider Before Applying for a $20,000 Personal Loan

Twenty thousand dollars is a sizable chunk of money — and you can do a lot with it. But applying for a loan of that size is a major decision, and there are questions to consider ahead of time.

How Is My Financial Situation?

To help boost your chances of getting approved for a loan, it’s a good idea to take stock of your finances. Determine how much you’ll need to borrow. Check your credit report and fix any inaccuracies you see. And calculate your debt-to-income (DTI) ratio — a good rule of thumb is to maintain a ratio of 36% or less.

Can I Afford the Monthly Payments?

Remember, when you take out a loan, you’re taking on more debt. Crunch the numbers and see if paying it off will put a strain on your finances. Using a personal loan calculator can give you an idea of how much you’d need to come up with each month.

How Will Applying Impact My Credit Score?

When you apply for a loan, the lender will likely do a hard pull of your credit. This can cause your credit score to drop temporarily by a few points. Provided you make your loan payments on time, this shouldn’t be an issue. But if you are in the process of applying for other financing, such as a mortgage, you might want to put more space between the applications to steer clear of the dip.

How to Apply for a $20,000 Personal Loan

To secure your money, you’ll need to get approved for a personal loan. Once you know how much you want to borrow, you may consider getting prequalified for a loan. Lenders will ask you to provide basic information, including your address, income, and Social Security number. They may then perform a soft credit check that won’t hurt your credit score.

Finally, they’ll offer you a prequalified quote, including how much money you qualify to borrow, your monthly payment, and your interest rate. You can use this process to shop around with a few lenders to secure the best rate.

Once you’ve decided which lender to go with, you’ll fill out a full application. You’ll need to provide proof of income, address, and employment, and you’ll need to submit to a hard credit check.

It typically takes anywhere from one day to one week to get approved for a personal loan. Once you are approved, review the offer and the loan’s terms and conditions. If everything looks good, then sign the loan agreement and the lender will disburse the funds.

If the terms aren’t right for you, you have the option to apply with a different lender. But note that every time you apply for a loan, the lender will perform a hard inquiry, which can temporarily cause your credit score to drop by a few points.

Requirements to Qualify for a $20,000 Personal Loan

When applying for a $20,000 loan, there are certain personal loan requirements that you’ll need to meet in order to be approved. These vary by lender but typically include:

•   A minimum credit score. A FICO® Score in the Good range (670 to 739) or higher will help you qualify for loans with better interest rates from a wider variety of lenders. If you have Poor credit (a FICO Score of 300 to 579), or even in the low end of the Fair range (580 to 669), you may have difficulty getting approved for a personal loan of $20,000.

•   Proof of a steady source of income. Examples may include pay stubs, tax return documents, and bank statements.

•   Age and citizenship requirements. In general, you’ll need to be at least 18 years of age and a U.S. citizen.

•   DTI ratio. As we mentioned, lenders usually prefer a DTI ratio below 36%.

Understanding the Loan Repayment Process

Repaying a loan means paying back the principal amount (the original sum of money you borrowed) plus interest. Payments are usually paid in monthly installments over the agreed-upon length of your loan.

Staying on top of those payments is crucial. Not only do timely payments help you establish or build a positive credit history, they also mean you can avoid costly late fee penalties. Want to pay extra every now and then? Talk to your lender or check your loan agreement first to find out if you can make additional payments without being slapped with a prepayment penalty.

Because on-time payments are good for your credit — and your credit score — it’s important to speak up if you’re having trouble making payments. Consult your lender and ask if they’d be willing to work with you on adjusting your loan terms or setting up a new payment plan.

Pros and Cons of a $20,000 Personal Loan

Once you understand how to get a personal loan and whether you might qualify, you of course need to decide if a personal loan of $20,000 is right for you. If a loan helps you consolidate higher-interest credit card debt, paying off your card balances and then making one monthly payment to retire all the debt, it could actually help you save money.

Personal loans also have other advantages: They can be obtained relatively quickly, are simple to manage, require no collateral, and can be used for pretty much any purpose. If your previous borrowing has been limited to credit card use, a personal loan could diversify your credit mix. This could help you build your credit score, as could making your loan payments on time and in full.

Things that could be perceived as a downside where personal loans are concerned: Obviously, when you take out a personal loan, you are taking on more debt. And if you don’t make your loan payments as required, your credit score will be negatively affected. Some lenders also charge fees and penalties. Finally, the interest rates on personal loans, while lower than those on credit cards, tend to be higher than the rate on a home equity loan.

Alternatives to a $20,000 Personal Loan

If a personal loan doesn’t feel like the right move, or you are unsure, it’s worth exploring the alternatives.

Credit Cards

There’s a reason personal loans are often used to consolidate debt from credit cards. Personal loan rates tend to be much lower than those for cards. The average personal loan interest rate in early 2026 was 11.40%, according to the Federal Reserve Bank of St. Louis. Meanwhile, the average credit card rate was 21.00%. Nevertheless, if you don’t want to go through the process of applying for a personal loan, a credit card is another borrowing option.

Borrowing Against Home Equity

If you meet personal loan requirements but also have a nice amount of equity in your home (at least 15%), you may also qualify for a home equity loan or home equity line of credit (HELOC). A home equity loan, like a personal loan, is a lump-sum loan and usually has a fixed interest rate. You begin to repay what you have borrowed, with interest, immediately. A HELOC is a line of credit. Both of these options usually have lower interest rates than personal loans, however some borrowers aren’t comfortable securing a loan with their home. Others don’t have the necessary home equity.

Savings or Payment Plans

You might be able to save the funds you currently need to borrow, especially if you pay close attention to where your money goes and cut back on extras. Another option is to use a payment plan provided by a retailer or hospital, if you know you need to borrow funds for a specific purpose. It’s important to compare loan terms and interest rates for this type of financing to those for a personal loan to ensure you obtain the lowest available interest rate, regardless of which lending option you choose.

The Takeaway

To get the best terms and interest rate for a loan for $20,000, you’ll likely need a Good credit score (670 to 739). But no matter your score, shop around and consider using prequalification to find the loan that’s best for you.

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.


SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

How long does the personal loan application process take?

Once you have all the necessary paperwork in order, you may be able to complete a personal loan application in just a few minutes. However, it can take anywhere from one to seven days to be approved and receive your funds.

What is the typical repayment period for a $20,000 loan?

Personal loan terms are generally anywhere from two to seven years. However, this can vary by lender. Typically, shorter terms will carry higher monthly payments and lower interest rates, while longer terms will have smaller monthly payments and higher interest rates.

Can I use the loan for any purpose?

One advantage of a personal loan is that you can use the funds for nearly any purpose. In many cases, borrowers take out a loan to consolidate high-interest debt or pay for expensive bills or home renovations.

What credit score do you need for a $20,000 personal loan?

Lenders will be looking for a credit score in the Good range (670 to 739) or higher to qualify for a $20,000 personal loan with a competitive interest rate. Some lenders may approve a personal loan of this amount for someone with a lower credit score, however interest rates may be higher than average.

How much are monthly payments on a $20,000 personal loan?

The monthly payment amount on a personal loan will depend on the interest rate and repayment term. A $20,000 personal loan repaid over three years with an interest rate of 11.40% will have a monthly payment of $659. You can compute costs according to your own interest rate using a personal loan calculator.

Photo credit: iStock/AsiaVision

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.


Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2023 was around $33K. Information current as of 2/26/24. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.

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