If you need to borrow a relatively small amount of money, a $1,200 personal loan can be a good option. These loans provide quick access to cash that can be used for a variety of purposes. Whether you need to cover an unexpected expense or make a small purchase, a $1,200 personal loan may be able to help.
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 a lump sum of $1,200 which you then repay over a set fixed monthly payments, typically over 1-3 years. The loan is unsecured, meaning you don't need to put up any collateral.
Key features of $1,200 personal loans include:
The interest rate you receive will depend on factors like your credit score, income, and debt-to-income ratio. Rates typically range from about 6% to 36% APR for $1,200 personal loans.
There are several options for obtaining a $1,200 personal loan:
Many online lenders offer personal loans starting at $1,000 or $1,500. Some top options to consider include:
Online lenders often have quick application processes and fast loans within 1-3 business days. They may also be more willing to work with borrowers with fair or poor credit.
Some traditional banks offer personal loans, including options for $1,200. Major banks to check include:
Bank loans may offer competitive rates if you have good credit but often have stricter eligibility requirements.
Credit unions are non credit unions frequently offer small personal loans to members, sometimes with more flexible terms. banks. Check with credit unions in your area to see what $1,200 loan options they may have available.
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 annualresholds or bank account verification. Having a cosigner can help you qualify if you don't meet all the criteria on your own.
Consider these advantages and potential drawbacks before taking out a $1,200 personal loan:
Follow these steps to apply for a $1,200 personal loan:
A $1,200 personal loan isn't always the best choice. Consider these alternatives:
| Alternative | Best For |
|---|---|
| Credit card | Short-term borrowing you can repay quickly |
| Secured loan | Lower rates if you have collateral to use |
| Payday alternative loan | Small, short-term loans from credit unions |
| Borrowing from family/friends | Interest-free borrowing if available |
You'll typically need a credit score of at least 580-600 to be approved for a $1,200 personal loan. However, some lenders offer personal loans for bad credit with scores as low as 550 or even no minimum credit score.
Many online lenders can approve and fund $1,200 loans within 1-3 business days. Some even offer same-day or next-day funding. Traditional banks may take 5-7 days or longer.
You can use your personal loan proceeds for almost any purpose, including:
The funds can be used for virtually anything you need cash for.
Average rates range from around 6% to 36% APR. The exact rate will depend on your credit score:
These rates are much lower than typical credit card interest of around 14-25% APR.
To select the right personal loan:
Spend time shopping around to find the best deal for your situation.
To avoid common pitfalls:
Be mindful of these potential missteps to protect yourself financially.
Consider a few real-life scenarios:
"I needed $1,200 to fix my car and couldn't afford it out of pocket. I applied for an online personal loan and got the cash within 48 hours."
"My daughter broke her arm playing softball and needed surgery. A quick $1,200 personal loan helped cover the out-of-pocket costs until my insurance kicked in."
"I had high interest credit card debt totaling over $4,000 but only needed $1,200 to consolidate it. I took out a personal loan and saved money on interest rates."