If you need a small amount of cash for an unexpected expense or short-term financial need, a $1,200 personal loan can be a viable option. These smaller personal loans provide quick access to funds without requiring collateral. Whether you have good credit or bad credit, there are lenders that offer $1,200 loans with varying terms and interest rates.
In this comprehensive guide, we'll cover everything you need to know about $1,200 personal loans, including:
A $1,200 personal loan is an unsecured installment loan that provides you with $1,200 in funds upfront. You then repay the loan amount plus interest in fixed monthly payments over a set loan term, typically 6-24 months for a loan of this size.
The application process is usually quick and straightforward:
Since $1,200 loans are unsecured, you don't need to put up any collateral like your car or home. Approval is based on factors like your credit score, income, and existing debts.
Loan terms can vary significantly between lenders, but here are some typical ranges you may encounter for a $1,200 personal loan:
| Loan Feature | Typical Range |
|---|---|
| APR | 6% - 36% |
| Loan Term | 6 - 24 months |
| Monthly Payment | $60 - $120 |
| Origination Fee | 0% - 8% of loan amount |
Your specific terms will depend on factors like your credit score, income, and the lender you choose. Those with excellent credit can often qualify for the lowest rates, while bad credit borrowers may face higher APRs.
While requirements vary by lender, you'll typically need to meet the following criteria to qualify for a $1,200 personal loan:
Some lenders may have additional requirements like minimum income thresholds or debt-to-income ratio limits. Many will also run a credit check as part of the application process.
There are several types of lenders that offer $1,200 personal loans:
Online lenders often provide the fastest application process and funding times for $1,200 loans. Top options include:
Many major banks offer personal loans, including options for $1,200. Consider checking with your current bank about their personal loan options.
Credit unions are member-owned financial institutions that often have competitive rates on small personal loans. You'll need to join the credit union to apply.
P2P platforms connect borrowers directly with individual investors. Popular options include Prosper and LendingClub.
Before taking out a $1,200 personal loan, carefully consider these potential advantages and disadvantages:
A $1,200 personal loan isn't the only option for accessing this amount of cash. Consider these alternatives:
If you have available credit, using a credit card may be faster than getting a loan. Look for a card with a 0% APR introductory offer to save on interest.
Apps like Earnin and Dave let you access a portion of your upcoming paycheck early, often with no interest.
While this can be awkward, borrowing from people you know often means lower or no interest charges.
You can get a short-term loan by using valuable items as collateral at a pawn shop. However, interest rates are often very high.
To find the right $1,200 personal loan for your needs, follow these steps:
Using a loan comparison tool can help you easily view and compare offers from multiple lenders side-by-side.
To increase your chances of approval for a $1,200 personal loan: