Taking out an $80,000 personal loan makes sense in some cases, but it is a large responsibility. If you are considering a loan like this, take inventory of your needs to make an effective plan for the future. Know how much your monthly payment will be and understand how you will pay it.

Talk to multiple lenders if you decide to take out a personal loan. You can find the best deals by shopping around. Every penny you save is helpful when you take out a loan.

How to determine if you need an $80,000 loan

When you take out an $80,000 personal loan, you also agree to pay any associated fees and interest. You must understand how much of a loan you need and why you need it before you decide to get one.

There are many reasons why taking out a personal loan might make sense. Personal loans can help you consolidate debt and get a better interest rate. They can also help you finance large expenses like home renovations, vacations, or weddings.

When considering a loan, think about how it can help you make money in the future. Using a loan to finance a vacation won’t get you more money in the future, but using $80,000 to fund a home renovation can help you build equity in your home. Think economically and make a smart plan. There are creative ways to finance large purchases that don’t require you to take out a loan. Think about these options as you consider taking out a large personal loan.

It would be worth it if you could make do with a smaller loan. A smaller loan means less interest over time and likely lower fees, which can help you save money exponentially.

Requirements to receive a personal loan

When you apply for a personal loan, the lender needs to make sure that you are likely to pay it back. They look at several factors to determine your eligibility — credit history, debt-to-income ratio (DTI), income, monthly expenses and assets.

Every lender is different, but there are some standard thresholds for credit score and DTI for any loan. Lenders typically require at least a 610 credit score and look for a DTI of 40 percent or lower. You may have to look a little harder to find a loan if you don’t fit these qualifications.

You can prepare for the application process by checking your credit score and gathering all the documents to verify this info. You can get a free credit report each year on annualcreditreport.com. Documents you will likely need include personal identification documents, employment and income verification — like a pay stub, address verification and your loan application.

Personal loan lenders that offer $80,000 loans

There are many types of lenders for personal loans. You can look at banks or credit unions or online for online lenders and peer-to-peer lenders. Every type of lender has different pros and cons, and you may be able to find better rates at different lenders. It’s always a good idea to talk to a few lenders before making a final decision on your loan.

Here are a few lenders we like who offer $80,000 loans:

APR range Loan amount range Minimum credit score requirement
BHG Money 10.49% – 29.99% $1 – $200K Not disclosed
LightStream 5.73% – 19.99% $5K – $100K Not disclosed
Sofi 7.99% – 23.43% $5K – $100K Not disclosed
Wells Fargo 5.99% – 21.74% $3K – $100K Not disclosed

BHG Money

Bankers Healthcare Group, or BHG Money, has personal loan options for up to $200,000 with no collateral required. No matter your credit score, this lender does its best to create a personal loan plan that works for you. Repayment periods for BHG Money personal loans are shorter than many other lenders at three to ten years, so you can expect monthly payments to be fairly high. However, this means you won’t accrue as much interest over the life of the loan.

LightStream

Need a loan for something? LightStream offers “loans for practically anything,” including large personal loans. The Rate Beat Program allows you to get an interest rate that’s 0.10% lower than any interest rate you are approved for with another lender.

You can apply online in just a few minutes for one of their loans, and if you are approved, you may get funds in your account as soon as the same day.

SoFi

SoFi boasts low fixed-interest rate personal loans, and they have many online options to help you check your rate quickly or get questions answered. This lender offers personal loans that will help you do anything from consolidating student debt to paying for IVF treatments.

Wells Fargo

Wells Fargo offers personal loan options with flexible payment terms. You can make a plan to repay your loan with a repayment term anywhere from 12 months to 84 months. If you already have an account with Wells Fargo, you may be eligible for a discount on your loan interest rate.

Costs of an $80,000 personal loan in the long term

Getting an $80,000 personal loan isn’t free. You will have to pay interest on the loan over time and any lender fees that are included with the loan. You typically have to pay an origination fee when opening a personal loan which often ranges from one to eight percent of the total. With a loan of $80,000, even a one percent origination fee comes out to an additional $8,000.

In some cases, lenders waive all or part of this fee.

Other fees you might encounter with a personal loan are prepayment penalties, late payment fees, and insufficient funds fees. Prepayment fees are charged by some lenders when you pay off the loan early. You are responsible for late payment fees when you miss your monthly payment deadline and insufficient funds fees when your account doesn’t have enough funds to cover the cost of your monthly payment.

Additionally, your total interest on the loan adds up over time. The cost of interest is typically bundled into your monthly payment, but it’s still a good idea to know how much the interest will cost over the life of the loan. Use a loan calculator to understand how different interest rates and loan terms affect the cost of the loan in the long term. Before signing off on any loan, understand all the costs, including any fees and interest.

Bottom line

Taking out an $80,000 personal loan isn’t just free money. You have to pay it back and pay interest on top of the loan amount. You also need to consider the lender fees you may have to pay.

Asking lots of questions to the lender and reading the fine print will give you the information to decide if you want to borrow from them. Know where to look for good rates and terms, and understand exactly what you are getting into when you sign up for a loan.