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How to get a $50,000 personal loan

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Do you need a $50,000 personal loan, but aren’t quite sure if you’ll qualify or which lenders are best? Larger loans for this amount are readily available through banks, credit unions and online lenders. But before you apply, it’s important to evaluate if you need a loan for this amount or if a smaller loan will suffice.

You should also familiarize yourself with what lenders look for in applicants and get at least three loan quotes to gauge if the benefits of securing a $50,000 personal loan outweigh the cost of borrowing.

How to determine if you need a $50,000 loan

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 more considerable 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.

Requirements to receive a personal 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 May 24, 2022, the average personal loan interest rate for consumers with excellent credit ranged from 10.3 percent to 12.5 percent, compared to 28.5 percent to 32 percent for borrowers with bad 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.

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.

In most instances, you’ll also need to provide the lender with the following information and documents to process your application:

  • 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

Personal loan lenders that offer $50,000 loans

You can get a $50,000 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 3.99%–19.99% (with autopay) $5,000 – $100,000 660
SoFi 6.99%–22.28% (with autopay) $5,000 – $100,000 680
Upgrade 5.94% – 35.97% (with autopay) $1,000 – $50,000 560
Best Egg Starting at 5.99% (with 3 or 5 year term) $2,000 – $50,000 660

LightStream

If you have good or excellent credit, LightStream is worth considering. It offers some of the most competitive interest rates on personal loans in the industry, and borrowers have the flexibility to 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 percentage points to earn your business.

SoFi

SoFi offers an innovative borrowing experience. You can view your rate in just 60 seconds with no impact on your credit score and, if approved, receive loan proceeds the same day. Along with its simplified application process, SoFi also extends other perks to its customers, including free access to financial education resources, financial coaches and unemployment protection in the unlikely event you lose your job while repaying the loan. You can also get a discounted interest rate when you opt for autopay.

Upgrade

A $50,000 personal loan from Upgrade could be ideal if you have less than perfect credit. Most loans are funded within one business day, and there are no prepayment penalties. You can choose a loan term of up to seven years and a monthly payment that works for your budget. Keep in mind that despite the flexible qualification criteria, you’ll pay an origination fee between 2 percent and 8 percent to secure a loan.

Best Egg 

If you have good credit, you can get a competitive interest rate on a personal loan from Best Egg. Loans are also available to borrowers with lower credit scores if their income is on the higher end. 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, an origination fee between 0.99 percent and 5.99 percent applies. If you select a four or five-year term, the origination fee will be at least 4.99 percent.

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 borrowing 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 (assuming you don’t pay the loan off early). Plus, personal loans with longer terms tend to have higher interest rates.

To illustrate, assume you get a 3-year, $50,000 personal loan with a 10.5 percent interest rate. Your monthly payment will be $1,625, and you’ll pay $8,504.40 in interest over the life of the loan. But if you opt for a 5-year term and get a 12.5 percent interest rate, your monthly payment will drop to $1,125. However, you’ll pay $17,493.81 in interest over the loan term.

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 formally apply for funding. Most importantly, only borrow what you need to avoid racking up unnecessary debt and stretching your budget too thin.

Written by
Allison Martin
Allison Martin's work began over 10 years ago as a digital content strategist, and she’s since been published in several leading financial outlets, including The Wall Street Journal, MSN Money, MoneyTalksNews, Investopedia, Experian and Credit.com.
Edited by
Loans Editor, Former Insurance Editor