Whether you’re looking to consolidate high-interest credit card debt, make a large purchase, or pay for a home renovation project, there are many reasons you might be eyeing a $50,000 pe꧂rsonal loan. Regardless of why you want to borrow that kind of money, though, you’ll likely need good credit to quali♎fy for this type of loan and to get a good interest rate.
I𒊎t’s important to understand the costs involved with borrowing $50,000 from a lender, as well as the potential effects that a loan this size can have on your finances and credit. Here’s everything you need to know.
- Where to get a $50,000 personal loan
- Requirements to receive a personal loan
- What to consider when comparing loans
- Cost to repay a $50,000 loan
- How to get a five-figure loan with bad credit
- Alternatives to a personal loan
Where to get a $50,000 personal loan
When shopping around for a♊ big personal loan, there are a few places you might want to start.
Online lenders
Online lenders are just like traditional banks, except they operate online and don’t have brick-and-mortar locations you can visit. While this can be a bit limiting in terms of accessibility (depending on you♏r preferences), it also trans𓃲lates into lower overhead costs, which the lenders pass on to you in the form of reduced fees, higher returns, and lower interest rates.
Since online personal loan lenders operate digitally, they prioritize the online exp🦩erience. This means you can often submit a l✃oan application and get approved online, sometimes in a matter of minutes.
| Lender | Rates | Loan amounts offered |
|---|---|---|
| Upstart | 5.40% to 34.99% APR | Up to $50,000 |
| Lightstream | 5.99% to 22.49% APR | Up to $100,000 |
| Upgrade | 7.96% to 35.97% APR | Up to $50,000 |
| Axos | 7.99% to 15.19% APR | Up to $50,000 |
| SoFi | 7.99% to 23.43% APR | Up to $100,000 |
| FreedomPlus | 7.99% to 29.99% APR | Up to $50,000 |
| Best Egg | 8.99% to 35.99% APR | Up to $50,000 |
| Universal Credit | 11.69% to 35.93% APR | Up to $50,000 |
Banks
Perhaps the most common source for a personal loan is a traditional bank. These financial inst🌼itutions have local branches you can visit in person, and many also operate online and/or through a mobile app. This gives you the best of ꩲboth worlds in many cases: face-to-face help when you need it, but a digital experience when you don’t.
If you have an existing relationship with a bank, you may find it even easier to apply and get approved for a personal loan since that bank already ha♏s your personal inf🉐ormation. And in many cases, banks offer rate discounts to existing customers, especially those who sign up for automatic monthly payments on their personal loan.
Credit unions
Similar to banks, credit unions are full-service fina❀ncial institutions that typically offer ꦍa brick-and-mortar banking experience, though many also offer online services. In addition to checking and savings accounts, credit unions may also offer personal loans.
Since credit unions are membership-based, they often have lo❀wer interest rates for their members on products like loans. Some credit unions will require you to meet special criteria to become a member — such as living in a certain area or being an active duty member of the military — though others will allow anyone to join.
Requirements to receive a personal loan
To borrow a personal loan from any lender, you’ll need to meet that lender’s criteria. These requirements will vary from one lender to the next, but they generally involve♒ your:
- Credit score and history
- Annual income
- Debt load (expressed as DTI, or debt-to-income ratio)
- Location
If you’re 🌃attempting to borrow from a credit union, you may also be required to sigꦐn up for membership to qualify.
While 💛there are personal loans for fair credit as well as low-income loans, lenders generally expect personal loan borrowers to have good or excellent credit and may also specify minimum income thresholds.
Even if you’re able to get approved, you’re more likely to snag better interest rates and loan terms with a 750 credit score tꦇhan a 600 credit score.
What to consider when comparing $50,000 loans
Not all loans are cꦐreated equal, so it’s important ꦇto spend some time evaluating your personal loan offers before accepting one. This can help you understand exactly what the lender is offering and how much the loan will cost you overall.
Here are the most important fac𓆉tors to consider when comparing your $50,000 pe♉rsonal loan options.
1. Interest rates
The cost of borrowing money from a lender is determined by the loan’s annual percentage rate (APR). This number tells✨ you exactly how much extra the loan will cost you each year when interest and any other applicable fees are added. The lower your APR, the less you’ll pay monthly and over the life of the loan.
2. Fees
You may have to pay certain fees when taking out a personal loan. ꦉPotential costs include application fees, origination fees, early repayment penalty fees, and even late feeꦫs if you don’t make your scheduled payments on time each month.
3. Repayment terms
Your loan term is how long you have to repay the debt. For personal loans, this mi🧔ght range anywhere from one year to seven years, depending on the lender. The longer your term, the less you’ll pay each month, but this usually results in your loan costing more overall.
Lenders tend to offer lower interest rates to borrowers who choose shorter repayment terms. Be sure to find the right balance between what your monthly budget will allow and how much you can reduce your overall 𒐪loan cost.
4. Monthly payment
Your personal loan is repaid in s🐓et monthly installments. A portion of each payment goes toward paying off the principal balance and some goes toward the interest charged.
If you have a fixed interest rate, your amortization schedule remains consistent throughout the entire r♚epayment term — meaning you’ll know exactly how much you’ll pay each month and precisely when the debt will be cleared off. The longer your loan t🦹erm, the lower your monthly payment will be.
5. Total repayment costs
Your overall loan cost is determined by your interest rate, your loan repayment term, and any fees you might incur along the way. 👍You can reduce your total repayment costs by choosing a loan with the lowest possible rate, the shortest possible term, and the least amount of fees.
Cost to repay a $50,000 loan
To figure out how much a $50,000 repayment will cost you, you first need to know the repayment term and interest rate. You can🌺 then use this information to calculate your personal loan cost overall, as well as your monthly payment based on the principal and interest due.
🉐Here are some examples of personal loan repayment costs based on common loan terms and interest rates.
| Interest rate (APR) | Repayment term | Monthly payment due | Overall cost | Total Interest Paid |
|---|---|---|---|---|
| 7.25% | 2 years | $2,244 | $53,863 | $3,863 |
| 7.25% | 7 years | $761 | $63,903 | $13,903 |
| 10.50% | 2 years | $2,319 | $55,651 | $5,651 |
| 10.50% | 7 years | $843 | $70,814 | $20,814 |
How to get a $50K personal loan with bad credit
If you have bad credit, don’t fear: some lenders offer🔜 specific “bad credit loans” for borrowers with a limited credit history or lower score. Yes, these loans often come at a higher interest rate than loans for borrowers with good credit, but they can al🃏so grant you access to the funds you need now.
You may need to adjust your loan amount if you’re unable to qualify for a $50,000 loan with bad credit. As a borrower, you pose less risk to a lender if you’re taking out a $2🌞0,000 personal loan, for instance, so there may be less stringent eligibility requirements.
Adding a cosigner to the loan can better help you qualify today, whether your application is denied or you simply want a better interest rate. Improving your credit score can a🎃lso save you money in the long run, especially if you plan to r💟efinance your debt in the future or take out an additional loan down the line.
Alternatives to a personal loan
When it comes to personal loans, $50,000 is a significant amount. In fact, some lenders won’t even allow y♉ou to borrow this much, and may only offer, say🎶, a maximum loan worth $35,000.
🍸If you’re unable to get approved for a $50,000 personal loan, here are so💫me alternatives you may want to consider:
- Take out a home equity loan. If you’re a homeowner with equity in your property, you may be able to take out a home equity loan against a portion of that value. Since these loans are secured by your home, they may be easier to obtain and offer lower interest rates than personal loans. However, because they’re secured by your home’s equity, you put your property at risk of foreclosure if you default.
- Consider a home equity line of credit (HELOC). A HELOC is another way to access the available equity in your home. Again, these are secured by your home and may have lower interest rates. HELOCs differ from home equity loans in that they give you an on-demand line of credit you can pull from anytime. This can be more convenient if you intend to make smaller purchases over time, rather than one large purchase up front.
- Opt for a retirement plan loan. If you have sufficient retirement savings, a loan against your retirement plan may be an option. This money is yours so it may be easier to tap into, and you won’t need to meet any credit score or income requirements to qualify. However, if you don’t repay the debt in time, you may be subject to penalties and additional taxes. Plus, your retirement savings won’t be invested while it’s borrowed, so there’s the loss of potential investment growth.
- Look into peer-to-peer lending (P2P). P2P platforms can give you access to the funds you need, which are lent by peer investors. Interest rates can be lower and, depending on why you need the funds, may be easier to qualify for. However, these generally aren’t accessible to borrowers with bad credit and there can be added limitations to the loan.
- Ask family or friends. Lastly, you might consider asking family members or close friends if you can borrow money. This is the most flexible option as you won’t have to worry about qualifying, and you can limit interest rates. However, this can be an easy way to burn bridges with loved ones, if you don’t repay the debt on-time as agreed. What’s more, you won’t be able to boost your credit along the way either, since this type of loan isn’t reported to the bureaus.