If you’re in the market for a $35,000 personal loan, you may be wondering where to start your search. There’s no shortage of lenders to choose from, and a quick search will display potential offers from traditional banks, credit unions and online lenders.

However, not all loan offers are the same; some come with steeper borrowing costs than others. Furthermore, you’ll find that the eligibility requirements for personal loans vary by lender. So it’s also important to research each lender’s criteria to ensure you’re a good fit for a $35,000 loan with competitive terms.

How to determine if you need a $35,000 loan

Before researching lenders and starting the application process, take a step back to assess how big of a loan you need.

Borrowing less means you’ll get a more affordable monthly payment and save in interest. Plus, you’ll avoid the temptation to spend on unnecessary items and minimize the risk of quickly becoming overextended, accumulating excessive late payment fees and possibly blowing up your budget. There’s also a chance that you’ll damage your credit rating if you fall behind on loan payments.

To determine if you need a $35,000 loan, jot down your loan purpose and the projected cost of what you’re looking to cover. Whether it’s a big-ticket purchase, home improvement project, medical expense, debt consolidation, wedding or some other considerable expense, include a slight cushion just in case. The figure you come up with is the loan amount you should request from the lender, even if it’s a bit lower than $35,000.

Requirements to receive a personal loan

Each lender has guidelines for personal loans. However, most will assess your credit score, income and debt load to determine if you’re a good fit for funding.

The lender wants to know that you earn enough money to make timely monthly payments, hence the importance of your debt-to-income ratio. It’s equally important to have a track record of managing past credit obligations on time, as indicated by a good or excellent credit score. But if your credit score is lower, you may be denied financing or pay higher borrowing costs if approved.

You’ll typically find that borrowers with good or excellent credit ratings qualify for the best rates offered by lenders. To illustrate, the average personal loan interest rate for consumers with excellent credit was between 10.3 percent and 12.5 percent as of October 17, 2022. However, borrowers with bad credit received steeper rates ranging from 28.5 percent to 32 percent.

When you’re ready to apply, gather the following:

  • Two forms of identification: driver’s license, passport, state-issued identification card, passport, military ID, Social Security card, birth certificate or certificate of citizenship
  • Employer information: employer’s name and supervisor’s name, email address and phone number
  • Proof of income (traditional employment): most recent paystubs, W-2s, 1099s, tax returns or bank statements
  • Proof of income (self-employment): 1099s, tax returns or bank statements
  • Proof of residency: lease agreement, mortgage statement, utility bill, property tax bill, voter registration card or insurance bill

Personal loan lenders that offer $35,000 loans

Personal loans for $35,000 are available through banks and credit unions. You will also find several options through online lenders. Some offer fast approvals and funding times to get you the cash you need as soon as one business day.

Apr Range Loan amount range Minimum credit score requirement
*Rates are current as of October 26, 2022
Best Egg 7.99%-35.99% $2,000-$50,000 600
LightStream 5.73%-19.99% (with autopay) $5,000-$100,000 Not disclosed
Marcus by Goldman Sachs 6.99%-24.99% (with autopay) $3,500-$40,000 Not disclosed
Upgrade 7.46%-35.97% (with autopay) $1,000-$50,000 560

Best Egg

Best Egg offers low interest rates to borrowers with good or excellent credit. But if your credit score is low, you may still be eligible for a personal loan. The application process is seamless, and some borrowers get a lending decision and funding the same business day.

You’ll likely pay an origination fee starting at 0.99 percent (or 4.99 percent for loans with terms of 4 years or longer) if you take out a personal loan with Best Egg, but early prepayment penalties aren’t assessed should you decide to pay the loan off early.

LightStream

LightStream is another viable option if you have a strong credit score. The interest rates are among some of the lowest you’ll find, and the lender will beat any competitor’s rate by 0.1 percentage points if it’s for the same loan product. If approved for a loan, you’ll also be able to choose the loan term that suits your financial situation. There’s also an option to defer the loan disbursement for up to 30 days, and there are no origination or prepayment penalties.

Marcus by Goldman Sachs

Marcus by Goldman Sachs makes it easy to take out a loan, and you can manage the entire process from the user-friendly website or mobile app.

Many borrowers can apply in minutes, receive a quick decision, and have funds deposited in one to four business days following approval. You may be eligible for a 0.25 percent APR discount if you use the autopay feature. There’s also a skip-a-payment feature if you make timely payments for 12 consecutive months. You’ll also find that support is available beyond standard business hours to address your questions or concerns.

Upgrade

Upgrade is another exceptional online lender that offers fast approvals and funding times in as soon as one day. Its personal loan offerings are flexible, and there are no minimum credit score or income requirements, making them accessible to borrowers with varying financial backgrounds. However, you’ll pay an origination fee, and limitations apply regarding how the funds can be used.

Costs of a $35,000 personal loan in the long term

The overall costs of a loan depends on the interest rate and loan term. If possible, opt for the shortest repayment period to minimize borrowing costs. You’ll get a higher monthly payment, but your interest costs will be lower since the lender won’t have as much time to collect from you.

Furthermore, selecting a shorter repayment period could mean you get a lower interest rate.

For example, a 5-year, $35,000 personal loan with an 11 percent interest rate comes with total interest costs of $10,659.09 and a monthly payment of $761. However, the same loan with a 3-year term and a 10 percent interest rate drops your total interest costs to $5,656.66, despite a higher monthly payment of $1,129. In this case, the 3-year loan would be the better choice assuming the monthly payment works for your budget.

Bottom line

Finding a personal loan for $35,000 doesn’t have to be challenging. But before starting your search, understand the general eligibility criteria to increase your chances of getting approved.

Also, consider loan offers from traditional banks, credit unions and online lenders, and consider getting preapproved before formally applying.

It’s also vital that you compare loan offers and ensure the monthly payment works for your budget. Most importantly, only borrow what you can comfortably afford to repay to protect your credit rating and overall financial health.