Securing a $50,000 Loan: A Step-by-Step Guide (2024)

Personal Finance Loans Personal Loans

Written by Tessa Campbell; edited by Richard Richtmyer



Securing a $50,000 Loan: A Step-by-Step Guide (1)

  • How to get a $50,000 loan
  • Get prequalified
  • $50,000 loan offers
  • Should you take out a $50,000 loan?
  • How to get a $50,000 loan FAQs
Securing a $50,000 Loan: A Step-by-Step Guide (2) Securing a $50,000 Loan: A Step-by-Step Guide (3)

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  • A $50,000 loan may come with a higher interest rate than a smaller loan because of the higher risk to the lender.
  • Only borrowers with excellent credit scores and low debt-to-income ratios should take out a $50,000 personal loan.
  • Make sure not to borrow more than is necessary or exceed your spending limits.

If you need some extra cash to pay for a large expense like a major home renovation project, a medical emergency that's not covered by insurance, or to consolidate other debt, you may be able to get a $50,000 personal loan from a bank, credit union, or online lender.

Larger loan amounts are riskier for lenders, so they may come with steeper interest rates than those you'd pay for smaller amounts. Only borrowers with very good to excellent credit scores can obtain the lowest interest rates for a $50,000 loan. So if your credit score is less than 740, understand that it could add thousands of dollars to your total cost of such a large personal loan.

Most personal loans are unsecured, meaning that the lender issues them based on your creditworthiness. It may also be possible to work with a lender and get a secured loan backed by collateral, such as a savings account or a vehicle you own. While pledging collateral may improve your chances of being approved, remember that if you can't repay the loan, the lender has the right to take whatever it is you used to secure it.

See Insider's picks for the best personal loans >>

Eligibility criteria for a $50,000 loan

Qualification requirements vary by financial institution, and they may be more strict for larger loans. But most lenders look at the following:

  • Credit score and history: The higher your credit score, the better your chances of getting approved for a loan with a low interest rate. Most lenders require a credit score that is at least in the mid-600s. Scores between 670 and 739 are considered "good." Lenders may also review your credit history for any potential issues such as previous bankruptcies, maxed-out credit cards, multiple new lines of credit, or a history of late payments.
  • Income and employment: You should prepare to show proof of income and employment as lenders want reassurance that you will have the funds to pay back your loan. You can use pay stubs, W-2 forms, tax returns, or a job verification letter from your employer to verify these details.
  • Debt-to-income (DTI) ratio: A DTI ratio measures how much of your income goes toward paying debts. A DTI ratio of 36% or lower is ideal, but 43% may also be an acceptable level in some instances. You can calculate your debt-to-income ratio by adding up all your debt payments (including student loans, car payments, and credit card debt) and dividing it by your gross monthly income.

In preparation for your $50,000 loan application, make sure to have all the necessary personal and finanical documents on hand. You should also check your credit score and calculate your current debt-to-income ratio so you have a better idea of where you stand.

Applying for a $50,000 loan

Get prequalified for a $50,000 loan

You can prequalify with multiple lenders before submitting a formal application to compare all of your options. You can compare interest rates, terms, and fees from different lenders. Prequalifying won't hurt your credit score.

Lenders often give a cursory look at basic qualifications to see if you seem like you'll be a good fit for a personal loan. As $50,000 is a large amount of money, prequalifying can give you a better idea of if you're likely to be approved and the kind of rates lenders are willing to offer you.

Approval during the prequalification process won't guarantee your approval for the formal application. A lender may catch something they didn't when you prequalified and ultimately reject your application. You'll also have to agree to a hard credit inquiry, which can temporarily lower your credit score.

Next step: See if you're prequalified for a loan with no impact on your credit score.

Apply for the loan

After you've gotten prequalified with several lenders, compare the initial offers they made and choose one to submit a full application to.

You can complete the loan application process online for most lenders.To do so, you'll need a significant amount of documentation, including things like:

  • Pay stubs/proof of income
  • The last couple years of tax returns
  • Documentation of 401(k)s and other financial accounts
  • Photo ID
  • Rent/mortgage history
  • Proof of collateral, if you're pursuing a secured loan

Get these basics in order before applying for the loan, in order to speed up the process.

Your lender will review your full application and decide whether to approve you for the loan. If you are approved, you'll receive the final loan documents to sign off on. These will include all the details of your loan such as the interest rate, the amount of time you have to pay it off, the total amount you're borrowing, the monthly payments, and any fees. Be sure to fully understand the total cost of the loan and make sure you have a plan to pay it off before signing off on it.

$50,000 loan offers

If you're shopping around for a good deal on a $50,000 loan, here are some options worth considering:

LightStream Personal Loan

LightStream's interest rates are among the lowest available, ranging from 7.99% to 25.49% (with AutoPay discount, rates vary by loan purpose). It's a great option for personal loans up to $100,000, especially for borrowers with excellent credit scores. Most LightStream Personal Loans are approved for debt consolidation, home remodeling, or medical debt. It requires a minimum credit score of 660 and doesn't charge additional fees.

SoFi Personal Loan

SoFi is a good option for folks with at least a 680 credit score. SoFi rates range from 8.99% - 29.49% fixed (with all discounts). It has no additional fees and even offers benefits like unemployment protection.

You can take out a loan for as much as $100,000 with SoFi.

Wells Fargo Personal Loan

Wells Fargo is best for borrowers interested in in-person support as Wells Fargo offers around 4,700 locations throughout the country. It's also an ideal option for folks who are already signed up with Wells Fargo. You can take out a loan as high as $100,000, and you won't be charged an origination fee or prepayment penalty fee.

Wells Fargo loan rates range from 8.49% to 24.49% (with relationship discount). But it doesn't disclose a minimum credit score requirement. Wells Fargo does have a history of legal violations regarding deposit accounts, mortgages, auto loans, and more.

PenFed Credit Union Personal Loan

Although PenFed stands out as one of the best options for smaller loans, it does offer loans as high as $50,000 and only requires a minimum credit score of 580. So if you have poor credit, PenFed may be worth looking into. PenFed loan rates range from 7.99% to 17.99%.

You have to be a PenFed member to qualify for a personal loan. To become a member, you have to be a retired or active member of the military. Or you can open a PenFed savings account for a $5 minimum deposit.

Should you take out a $50,000 loan?

Personal loans can be a great way to pay medical bills, major life events, home renovations, or consolidate other debts. But only borrowers with excellent credit scores, low debt-to-income ratios, and a consistent source of income should take out a $50,000 loan.

You should only take out such a large loan if you're able to secure a great interest rate, reasonable loan terms, and avoid additional fees. If you're not able to get a good rate, you shouldn't take out a $50,000 loan. A large loan plus a high-interest rate is a recipe for disaster.

Consider borrowing money from a friend or family member, or talking with a financial advisor about your current financial situation and goals.

How to get a $50,000 loan FAQs

What is the monthly payment on a $50,000 loan?

The monthly payment of a $50,000 loan can vary greatly based on the interest rate and the terms of your loan. For example, a $50,000 loan with a 10% interest rate over 24 months would cost you $2,307.25 per month. The same-sized loan with the same interest rate over five years would cost you $1,065.35 per month.

What credit score is good for a $50,000 loan?

A credit score of at least 700 is recommended for larger loans, as a high-interest rate on a large loan amount can very quickly escalate your borrowing costs. Even if you're able to get approved for a $50,000 personal loan with poor or bad credit, you may be charged a very interest rate that could increase the total amount you pay on the loan by thousands of dollars.

Is it hard to get a $50,000 personal loan?

It can be hard to get a $50,000 loan if you don't meet all of a lender's qualification requirements. Borrowers with low credit scores, high DTI ratios, or those who are currently unemployed may have a hard time qualifying. If your score is too low, you can apply to lenders that specialize in approving loans for those with low credit scores, or you can take steps to improve your score.

What are the risks associated with taking out a $50,000 loan?

The risks of taking out a $5o,000 loan are similar to those involved with any kind of borrowing. They include a potential negative impact on your credit score if you miss payments, and financial strain if you don't manager your budget properly to account for the loan.

How long can I take to repay a $50,000 loan?

Personal loan terms vary by lender, but typically range from around one to seven years. Remember that the longer you take the pay off the loan, the more you'll ultimately pay for it, even if the monthly payments are lower.

Securing a $50,000 Loan: A Step-by-Step Guide (4)

Tessa Campbell

Junior Investing Reporter

Tessa Campbell is a Junior Investing Reporter for Personal Finance Insider. She reports on investing-related topics like cryptocurrency, the stock market, and retirement savings accounts. She originally joined the PFI team as a Personal Finance Reviews Fellow in 2022.Her love of books, research, crochet, and coffee enriches her day-to-day life.

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Securing a $50,000 Loan: A Step-by-Step Guide (5)

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Securing a $50,000 Loan: A Step-by-Step Guide (9)

Securing a $50,000 Loan: A Step-by-Step Guide (2024)


How to get approved for a $50,000 loan? ›

Lenders have varying criteria for borrowers seeking a $50,000 loan, but in general, the process is similar to smaller loans. Borrowers will need to provide proof of employment or income, a favorable debt-to-income ratio and a credit score and history that meets the lender's minimum qualifications.

What credit score do you need for a 50000 personal loan? ›

You'll have the best chance of getting approved with an excellent credit score, such as one above 800. You may struggle to find a lender that will approve a $50,000 loan for folks with poor or bad credit. A "poor" credit score is considered 580 or under. Most lenders require at least a "fair" score of around 670.

What is the average monthly payment on a $50,000 personal loan? ›

The monthly payment on a $50,000 loan ranges from $683 to $5,023, depending on the APR and how long the loan lasts. For example, if you take out a $50,000 loan for one year with an APR of 36%, your monthly payment will be $5,023.

What is the process of securing a loan? ›

Secured lenders will assess the value of your home, car or other asset to determine whether it's worth enough to support the loan you apply for. More paperwork and longer funding turn time. The secured loan process may require more documentation and take longer to fund than unsecured loans.

Is it hard to get a $50 000 loan? ›

The ease of getting a $50,000 loan depends on your credit and a lender's specific approval requirements. Borrowers with higher credit scores are more likely to be approved for a broader range of loans and with better terms.

How do I qualify for a loan? ›

  1. Credit Score and History. An applicant's credit score is one of the most important factors a lender considers when you apply for a personal loan. ...
  2. Income. ...
  3. Debt-to-income Ratio. ...
  4. Collateral. ...
  5. Origination Fee. ...
  6. 4 Personal Loan Documents Your Lender May Require.
Apr 10, 2024

How big of a loan can I get with a 600 credit score? ›

With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).

Can I get a 50k loan with a 650 credit score? ›

You can borrow as much as $40,000 - $100,000+ with a 650 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

How much is a $50,000 loan payment for 7 years? ›

Here's what a $50,000 loan would cost you each month
Two-Year Repayment$2,261.36/month, $4,272.75 in interest over time
Seven-Year Repayment$779.31/month, $15,462.10 in interest over time
10-Year Repayment$606.64/month, $22,796.56 in interest over time
Jan 20, 2024

How much are payments on $50,000? ›

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Loan AmountLoan Term (Years)Estimated Fixed Monthly Payment*
13 more rows

How hard is it to get a personal loan from Chase Bank? ›

Even if you have Chase credit cards, a Chase mortgage, and Chase bank accounts in good standing, you can't get a personal loan through Chase. Fortunately, you have many personal loan lenders to choose from.

What is the risk of a secured loan? ›

A secured loan usually means the lender can take your home if you fail to repay. Unsecured personal loans are less risky, but you'll still need to repay on time.

Which bank gives a loan easily? ›

With attractive interest rates, minimal documentation and speedy processing, Bank of Baroda Kenya offers among the best personal loans today.

How long does a secured loan take? ›

Homeowner loans (AKA secured loans), usually take between three to four weeks to process. Exactly how long it takes will vary depending on your personal circ*mstances and the time it takes you to complete the paperwork. Once the loan is approved, the money could potentially reach your account the same day.

How much do you need to make to get approved for a 500k loan? ›

In today's climate, the income required to purchase a $500,000 home varies greatly based on personal finances, down payment amount, and interest rate. However, assuming a market rate of 7% and a 10% down payment, your household income would need to be about $128,000 to afford a $500,000 home.

What credit score do you need for a 100000 dollar loan? ›

To qualify for a $100,000 personal loan, you'll need a credit score of 720 or above and a high income. Large unsecured loans tend to be expensive because they have high interest rates and long loan terms.

How much loan can I get on $50000 salary? ›

A person making $50,000 may be able to afford a mortgage around $265,000. The mortgage amount you'll qualify for ultimately depends on your credit score, debt and current interest rates.

How much can you get approved for making 50k a year? ›

So, if you have a $50,000 annual salary, you should be able to afford a $125,000 home. Explore what your mortgage payment might be with today's rates.


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