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Personal loans are a fantastic way to fund many things, from paying off medical bills to installing solar panels. If you're looking forward to a large purchase -- or you're looking into paying off debt with a debt consolidation loan -- you're probably wondering: "How much personal loan can I get?" Or, more precisely, "Can I borrow the amount of money I need?"
Below, we'll get into the details of loan amounts: what they are, how they're decided, and how you can get approved for the amount you need.
Personal loan amounts generally range from as low as $1,000 to as high as $100,000. The exact range varies from lender to lender. For example, among the best personal loan lenders, there are lenders that offer loans from $1,000 to $50,000, $2,000 to $30,000, and $5,000 to $100,000.
The average loan amount for new borrowers is $8,200, according to recent personal loan statistics. Because of the wide range of loan amounts available, personal loans are a flexible way to borrow money. If you just need $2,000 to finance car repairs, you can borrow exactly that. But you can also find a $30,000 loan for home renovation, if your house needs some TLC.
How much personal loan you can get depends on several factors unique to you, including your:
How much loan you should get depends on your budget. Use the calculator below to estimate the monthly payments for loans of different sizes:
Keep in mind the first four factors listed above will still influence how much you can borrow. If you have a lot of existing debt, you might not qualify for a large personal loan. In that situation, lenders could be afraid you won't be able to pay back a large personal loan and your other debt. Below, we'll explore these factors in more depth.
If you're unemployed, check out our guide to getting a loan while unemployed for more information on what to list as income on a personal loan application.
Your credit score is a rating of how good you are at repaying debt. Every time you make a credit card payment, miss a loan payment, or borrow money, it goes onto your credit report. Then, the information on your credit report (also known as your "credit history") is rated on scale from 300-850 -- that's your credit score.
Borrowers with high credit scores can often qualify for bigger personal loans. Here's what a high credit score can tell a personal loan lender:
Steady employment can go a long way toward improving personal loan eligibility and the amount of money you can borrow. The longer you've been on the job (or in a similar job with another company), the more secure your position appears. While employment history has nothing to do with your credit score, it's another tool that lenders use to decide how likely you are to repay personal loan funds.
One of the most critical factors in determining how much you can borrow is how much you earn each month. Lenders want a sense of what your budget will look like once you add another monthly payment into the mix. One way a lender gauges this is to check your debt-to-income (DTI) ratio.
To calculate your DTI ratio, a lender adds together your fixed monthly payments. This includes mortgage (or rent), auto loans, credit cards, and other personal loans. Once they have a total, they divide that number by your gross monthly income (the amount you earn before taxes and other deductions).
Here's how one person might calculate their DTI:
Total monthly debt payments: $1,275
($850 mortgage + $325 auto loan + $100 credit card)
Total monthly income, pre-tax: $5,000
DTI: $1,275 (monthly payments) ÷ $5,000 (monthly income) = 0.25 = 25%
In this case, the DTI is 25%. It's generally good to keep your DTI below 36%. While the maximum acceptable DTI varies by lender, it's a smart move to keep yours as low as possible -- especially if you want to qualify for a larger loan.
Most personal loans are unsecured loans. There's no collateral with an unsecured loan, so if you stop making payments, the lender can't take any of your possessions. (The lender can still sue you, though.) It can be hard for some people to qualify for a large unsecured loan.
You may be able to borrow more with a secured loan. With a secured loan, you'll put up something valuable as collateral. The bank can take possession of this collateral and sell if you fail to pay back loan funds as agreed. You can usually borrow up to half of the value of the collateral. If you have a car worth $20,000, you can likely get a $10,000 loan by offering the car as collateral. Other examples of collateral for a secured loan include a savings account, retirement account, jewelry, or anything else of value you own.
If you qualify for a smaller personal loan than needed, it's possible to increase the loan amount you're eligible for. Here are some ideas on how to get a loan for a larger amount:
We'll go into these in more depth below.
It's always a good idea to consider multiple lenders, but it's especially important if you want a large loan. Get prequalified with multiple lenders to find out how much money each lender can offer. Prequalification shouldn't impact your credit score (lenders use what's called a "soft credit check" to get an idea of your credit score), so this is a risk-free way to rate shop.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
If you need money soon, ask about extending the repayment period. Extending the repayment term will lead to a lower monthly payment (which means the lender may be willing to give you the loan you need). Be aware, though, that longer repayment terms mean paying more interest over time.
If someone in your life has an established credit history and excellent credit score, consider asking them to be a cosigner on the loan. The lender will then decide eligibility based on both of your credit scores rather than yours alone. Remember: When someone is kind enough to cosign a loan for you, they put themselves at risk. If you miss a payment, they are on the hook for the money. Only ask someone to cosign a loan you're sure you can pay back.
As discussed above, if you're applying for a loan without collateral (an unsecured loan), you might be able to increase your loan size by offering collateral and getting a secured loan instead. And if you're already offering collateral, offering something of more value might boost the amount you're approved for.
If you're not approved for the loan amount you require, ask the lender for an explanation. Your DTI may be too high. If so, work on paying off debt before reapplying for a personal loan.
Raising your credit score can help you get approved for a larger loan. One of the fastest ways to improve your credit score is to look for mistakes on your credit report. For example, a mistake might say you missed a payment you didn't miss, or took out a large loan you never applied for. These can drag your score down. To get started, order a free copy of your credit report, look for any mistakes, and report those errors to the credit bureau.
For more information, head over to our guide: What credit score do I need for a personal loan?
A new job or side hustle may make you eligible for a larger loan amount. It is likely to take months to see the fruits of a side gig -- and months more to provide a lender with evidence of your increase in income. Still, if you need a loan for something big like debt consolidation or a home improvement project, it might be worth it to use the extra time to pad your checking account as you wait.
Here are some other questions we've answered:
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Personal loans are available for amounts ranging from $1,000 to $100,000. The amount you can borrow depends on a variety of factors, including the lender you choose and how much it approves you for. You can go rate shopping with multiple lenders to see how much you'd be able to borrow with each one.
When you apply for a personal loan, the lender runs a hard credit check on you, which causes a small decrease in your credit score. Most consumers see their credit scores drop by less than five points from a hard credit check.
There are also ways that a personal loan can help your credit score. On-time loan payments will build your payment history, which is the most important factor in your credit score. If you use a personal loan to consolidate credit card debt, that can lower your credit utilization ratio, another significant credit scoring criteria.
To get a $30,000 personal loan, you'll most likely need a good or excellent credit score, meaning a credit score of 670 or higher. The lender will also look closely at your income to verify that you earn enough to make the monthly payments.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Please note that this calculator is not personalized financial advice and should not be considered or used as such. Nor are we promising that by use of this calculator, will you be able to save more money, preserve wealth, or otherwise.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Please note that this calculator is not personalized financial advice and should not be considered or used as such. Nor are we promising that by use of this calculator, will you be able to save more money, preserve wealth, or otherwise.
Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 8.49% APR with a term of 5 years would result in 60 monthly payments of $205.12. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.
Citi Personal Loan disclaimer:
**Rates as of 05-31-2024. Your APR may be as low as 11.49% or as high as 20.49% for the term of your loan. The lowest rate quoted assumes excellent credit and a loan term of 24 or 36 months. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.