Key takeaways

  • Loans for this amount are offered by banks, credit unions and online lenders. The latter often features rapid funding times.
  • An excellent credit score will typically qualify you for the lowest rate on a loan of this size.
  • Most importantly, evaluate the necessity and costs of a $50,000 personal loan to determine if it makes sense for your financial situation.

Larger loans of $50,000 are available through banks, credit unions and online lenders. But before you apply, evaluate if you need a loan for this amount or if a smaller loan will do.

You should also familiarize yourself with what lenders look for in applicants. Get at least three loan quotes and search for the lowest personal loan rates. This will help you gauge if the benefits of securing a $50,000 personal loan outweigh the cost of borrowing.

Where to get a $50,000 personal loan

You can get a $50,000 personal loan from a traditional bank or credit union. Online lenders are also an option, and many feature a simple application process and fast funding times.

APR range Loan amount range Minimum credit score requirement
LightStream 7.49%-25.49%* with Autopay $5,000–$100,000 695
SoFi 8.99%-29.49%* with Autopay $5,000–$100,000 680
Upgrade 8.49%-35.99% *with autopay $1,000–$50,000 600
Best Egg 8.99%-35.99% $2,000–$50,000 600

LightStream

If you have good or excellent credit, LightStream is worth considering. It offers some of the lowest interest rates on personal loans in the industry, and borrowers can select a loan term and funding date that works best for them. Even better, there are no origination fees, and you won’t be charged a prepayment penalty if you decide to pay the loan off early. LightStream will also beat any competitor’s rate for a comparable personal loan product by 0.1 percent through its Rate Beat program.

SoFi

SoFi offers prequalification in just 60 seconds with no impact on your credit score. You may receive your loan on the same business day if you’re approved before 7 p.m. ET. Along with its simplified application process, SoFi also extends other perks to its customers, including free access to career education resources, rewards and financial planning. You can get a small interest rate discounts for opting into autopay.

Upgrade

A $50,000 personal loan from Upgrade could be ideal if you have fair credit. Bankrate users who took out a loan from Upgrade received their funds in 3.5 days on average. You can choose a loan term between two to seven years and a monthly payment that works for your budget. However, you’ll pay an origination fee between 1.85 percent and 9.99 percent when you borrow a loan.

Best Egg

If you have a credit score over 700 and income of at least $100,000, you can get Best Egg’s competitive lowest rate. Loans are also available to borrowers with lower credit scores — just expect higher rates. You could get approved and funded on the same day, and there are no prepayment penalties if you choose to pay the loan off ahead of schedule. However, Best Egg charges an origination fee between 0.99 percent and 8.99 percent.

How to get a $50,000 loan

It depends on the lender, but most will evaluate your creditworthiness and debt-to-income ratio. Lenders want to know that you’ve responsibly handled debt products in the past and can afford to make timely monthly payments on a new loan.

Your credit rating sheds light on how you manage outstanding debt obligations. Lower interest rates are generally reserved for borrowers with good or excellent credit. As of April, the average personal loan interest rate for consumers with excellent credit ranged from 10.73 percent to 12.5 percent, compared to 28.5 percent to 32 percent for borrowers with bad credit.

When you’re ready to apply, follow these steps to give yourself the best chance at getting approved for a $50,000 loan:

Step 1: Check your credit. A fair or bad credit rating doesn’t necessarily mean you can’t get a $50,000 personal loan. But you can expect to pay far more in interest over the loan term. The lender may also require you to have a cosigner with exceptional credit health to approve you for a loan.

Step 2: Understand lending guidelines. Beyond credit scores, most lenders will also evaluate your debt-to-income ratio when deciding whether you’re a good fit for a loan. It’s the percentage of your gross monthly income used to cover minimum monthly debt payments. If this number is on the higher end, lenders may be hesitant to approve you or charge far more in interest since the risk of default is higher.

Step 3: Get prequalified. Explore several lenders and get prequalified with at least three. Doing so lets you compare loan offers without negatively impacting your credit score.

    • Proof of identity: driver’s license, state-issued ID, passport, certificate of citizenship, birth certificate, Social Security card or military ID (Note: most lenders will request two forms of identification)
    • Proof of address: mortgage statement or lease agreement, proof of insurance (home, renters or auto), utility bill, voter registration card, property tax receipt or account statement
    • Your employer’s contact information: employer’s name, supervisors phone number and email address
    • Proof of income (traditional employment): paystubs, tax returns, W-2s and 1099s or bank statements
    • Proof of income (self-employment): bank statements, income tax returns or 1099s

Step 4: Gather documentation. In most instances, you’ll need to provide the lender with identifying information and documents when you apply This includes proof of identity, address and income documentation along with your employer’s contact information.

Step 5: Formally apply for a loan. Complete a loan application with your chosen lender online or in-person (if applicable). Be sure to review the contents for accuracy and submit any required documentation properly to avoid hiccups in the lending process.

Step 6: Receive a lending decision. If approved, review the loan agreement and sign the contract. Most lenders disburse funds electronically, but the funding timeline varies. You could receive the loan proceeds as soon as one to a few business days.

Costs of a $50,000 personal loan in the long term

Ideally, you want a loan with a short repayment period and a low interest rate to minimize costs. Some borrowers choose an extended loan term to get more affordable monthly payments, but there are a few drawbacks. You’ll pay more in interest as the lender will have more time to collect from you. Plus, personal loans with longer terms tend to have higher interest rates.

To illustrate, assume you get a $50,000 personal loan. Here’s what you can expect in terms of monthly payments and borrowing costs based on the loan term you select:

Loan Term Interest Rate Monthly Payment Total Interest Paid
3 years 12.5 percent $1,673 $10,216.53
5 years 14.5 percent $1,176 $20,584.84

The lengthier terms saves you close to $500 each month, but the total amount you pay in interest over the loan term doubles.

How do you plan to use the loan proceeds? Will you cover a big-ticket expense, financial emergency, renovate your home or consolidate high-interest debt? If not, do you have a compelling reason to borrow such a large amount of money?

Grab a notebook and calculate the exact amount you need. It can be tempting to ask the lender for far more, especially if you have little or no money saved. Still, you risk borrowing more than you can afford to repay, racking up late payment fees and damaging your credit rating.

However, some circumstances warrant a larger loan amount than you actually need. Home improvement projects and special events, like weddings, often run a bit over budget. So, it could be sensible to overestimate your expense items and request a loan for this amount.

Alternative financing options

If you’re not completely sold on the idea of taking out a $50,000 loan, consider these alternatives:

  • Credit card: The APR on credit cards is generally hefty and few are approved for credit limits that high. But if you don’t need all the money at once and can repay promptly to avoid hefty interest charges, a credit card could be an option.
  • Home equity loan: You can borrow against the equity in your home with this loan product. It comes with a fixed interest rate, often lower than you’ll get with a credit card, and a set monthly payment. Because your home secures a home equity loan, you could lose your residence if you fail to pay.
  • Home equity line of credit (HELOC): Like a credit card, a HELOC gives you a preset spending limit to use on an as-needed basis. The line replenishes as you repay borrowed funds, and you can use it until the draw period ends. Because your equity in your home secures a HELOC, it typically has a higher spending limit and lower rate than a credit card.

The bottom line

A $50,000 personal loan can help you meet a financial goal or provide much-needed relief. Either way, be sure to evaluate lenders and consider the cost of borrowing before you apply for funding. Most importantly, only borrow what you need. You want to avoid unnecessary debt and stretching your budget too thin.