Everything You Need to Know About $1,200 Personal Loans

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:

How $1,200 loans work
Typical loan terms and rates
Eligibility requirements
Where to get a $1,200 loan
Pros and cons to consider
Alternatives to explore

How $1,200 Personal Loans Work

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:

Apply online or in-person with basic personal and financial information
Get a loan decision, often within minutes
Review and accept the loan offer
Receive funds, sometimes as soon as the next business day

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.

Typical Terms for $1,200 Personal Loans

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.

Eligibility Requirements for $1,200 Loans

While requirements vary by lender, you’ll typically need to meet the following criteria to qualify for a $1,200 personal loan:

Be at least 18 years old
Have a valid government-issued ID
Be a U.S. citizen or permanent resident
Have a steady source of income
Have a bank account for funds to be deposited
Meet minimum credit score requirements (often 580-640+)

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.

Where to Get a $1,200 Personal Loan

There are several types of lenders that offer $1,200 personal loans:

Online Lenders

Online lenders often provide the fastest application process and funding times for $1,200 loans. Top options include:

Upstart
Upgrade
LendingPoint
Avant

Banks

Many major banks offer personal loans, including options for $1,200. Consider checking with your current bank about their personal loan options.

Credit Unions

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.

Peer-to-Peer Lenders

P2P platforms connect borrowers directly with individual investors. Popular options include Prosper and LendingClub.

Pros and Cons of $1,200 Personal Loans

Before taking out a $1,200 personal loan, carefully consider these potential advantages and disadvantages:

Pros:

Quick access to funds for unexpected expenses
Fixed monthly payments for easy budgeting
No collateral required
Can help build credit if payments are made on time
Lower interest rates than credit cards for many borrowers

Cons:

Interest charges increase the total cost of borrowing
Some lenders charge origination fees
Monthly payments can strain your budget
Potential for late fees if you miss payments
May be difficult to qualify with bad credit

Alternatives to $1,200 Personal Loans

A $1,200 personal loan isn’t the only option for accessing this amount of cash. Consider these alternatives:

Credit Card

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.

Paycheck Advance Apps

Apps like Earnin and Dave let you access a portion of your upcoming paycheck early, often with no interest.

Borrow from Family or Friends

While this can be awkward, borrowing from people you know often means lower or no interest charges.

Pawn Shop Loan

You can get a short-term loan by using valuable items as collateral at a pawn shop. However, interest rates are often very high.

How to Choose the Best $1,200 Loan

To find the right $1,200 personal loan for your needs, follow these steps:

Check your credit score to understand what rates you may qualify for
Compare offers from multiple lenders
Look at the APR, not just the interest rate
Consider the total cost of the loan, including any fees
Make sure the monthly payments fit your budget
Read the fine print carefully before accepting an offer

Using a loan comparison tool can help you easily view and compare offers from multiple lenders side-by-side.

Tips for Getting Approved for a $1,200 Loan

To increase your chances of approval for a $1,200 personal loan:

Check your credit report for errors and dispute any inaccuracies
Pay down existing debts to improve your debt-to-income ratio
Consider applying with a co-signer if you have less-than-stellar credit
Provide thorough and accurate information on your application