Key Takeaways
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Obtaining an $80,000 personal loan requires careful consideration, especially when it comes to your credit history and looking for the best rates.
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While it is possible to get an $80,000 personal loan with bad credit, this is a huge risk as it can lead to higher interest rates and potential financial problems down the road.
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Before you opt out, it’s important to understand all the costs associated with an $80,000 personal loan, including interest rates and applicable fees.
A personal loan of €80,000 is a big responsibility. Before you move forward, assess your needs, know how much your monthly payment will be, and understand how you will pay it. It’s just as important to shop around with multiple lenders to ensure you get the best deal on a personal loan.
How to Get an $80,000 Personal Loan
Taking out an $80,000 loan requires more forethought and care than a smaller loan. First and foremost, you need to consider your income and how much you can afford. You also need to know your credit profile in detail. The stronger your credit, the more likely you are to qualify and the more competitive the rates you will receive.
When comparing personal loan providers, also pay close attention to loan amount limitations, as you will be borrowing on the higher side. Most lenders do not offer unsecured personal loans for more than $50,000.
Once you’ve crunched the numbers and compared lenders, you can apply for financing. You should prepare for the application process by checking your credit score and gathering all documents to verify this information.
How to Get an $80,000 Personal Loan with Bad Credit
If your credit score is in a challenging situation, taking out a personal loan for such a high amount is a very big risk. It puts you in a vulnerable position and could lead to future financial problems.
There are bad credit personal loan providers that typically target people with low credit scores. However, most don’t offer loans of $80,000 – in fact, all lenders rated by Bankrate have a maximum amount of $50,000 or less.
Learn More: How to Choose the Best Bad Credit Loan Company
One way to overcome this challenge is to look for a lender that will allow you to add a cosigner or co-borrower. If you apply with a trusted family or friend with a strong credit history, you may qualify. Regardless of the route you choose, the other person will be equally responsible for the monthly payment, so it’s crucial that you know you can afford it.
Where can you get a personal loan of €80,000?
Personal loans of any amount are available from banks, credit unions and online lenders. Each type of lender has pros and cons that are worth considering. With a loan of this size, it is especially important to compare a number of lenders to ensure you qualify and can receive a competitive APR.
Banks
Banks provide an experience that is well suited to a borrower who prefers personalized support. Those who already have an existing relationship with a bank should investigate personal loan offerings; discounts may be available.
Wells Fargo
Bankrate’s opinion
Wells Fargo offers personal loan options with flexible repayment terms. This is especially true for those who borrow between $5,000 and $100,000, as the repayment period extends to 84 months. Interest discounts of 0.25 percent or 0.5 percent are also possible for current account holders.
Plus points
- Long repayment terms.
- Fast financing.
- Rate discounts for account holders.
Disadvantages
- Only available to existing customers.
- Minimal locations.
Credit unions
Credit unions function as not-for-profit financial institutions and typically offer competitive rates to borrowers. According to American credit unions, the average interest rate is almost one percentage point lower than that of bank loans National Credit Union Administration. While membership is usually quite easy to secure, make sure you check your eligibility before signing up.
Alliance
Bankrate’s opinion
Alliant is an online credit union serving members nationwide. It stands out from other lenders because of its minimal costs and fast financing. Loan terms are available for up to 60 months and amounts can go up to $100,000.
Plus points
- Fast financing.
- Wide range of loan amounts.
- Minimal costs.
Disadvantages
- Higher than average minimum APR.
- No prequalification.
Online lenders
Online lenders may be a good fit if fast financing is a top priority. These institutions often have financing available within one business day of approval. Please note that online lenders do not have branches, so you will not get personal support.
LightStream
Bankrate’s opinion
LightStream offers financing up to €100,000, which matches well with an €80,000 loan. Additionally, the Rate Beat program allows you to get an interest rate that is 0.1 percent lower than the interest rate you are approved for for a comparable loan product with another lender. The application process only takes a few minutes and if approved, you can receive the money in your account the same day.
Plus points
- No fees.
- Fast financing.
- Wide range of loan amounts.
Disadvantages
- No prequalification.
- Long credit history required.
Cost of an $80,000 personal loan over the long term
An $80,000 loan is going to cost a significant amount of money. You pay interest on the amount you borrow and any costs charged by the lender.
Some lenders charge origination fees (sometimes up to 12 percent of the loan amount), prepayment penalties if you choose to pay off the loan early, late payment fees, and insufficient funds for returned payments. All of this can add to the total cost of the $80,000 loan.
Use a loan calculator to understand how different interest rates and loan terms affect the cost of the loan. You want to have a good understanding of the loan and any associated costs before you sign the agreement.
Alternatives to $80,000 Personal Loans
If you cannot find a personal loan that meets your needs, it is best to look for alternatives rather than taking out a loan that could lead to future financial problems. Consider the following alternatives for an $80,000 personal loan:
- Mortgage loan or HELOC: The main benefit of this lending option is the ability to obtain financing at longer terms than personal loans allow. But it’s not without risk: Your home is at stake and you must have significant equity to qualify. A home equity loan is disbursed in one lump sum, while a line of credit allows you to draw multiple times over a period of time.
- Cash-out mortgage refinancing: A cash-out refinance also requires significant equity in your home. You replace your mortgage with one for more than you owe and get the difference in cash. It is a potentially expensive option and is not recommended if you cannot get the same rate or a lower rate than your current mortgage.
- Peer-to-peer lending: Unlike a personal loan where you borrow from financial isolation, peer-to-peer lending works like a group of investors lending money. This can increase your chances of approval, but can also result in higher interest rates and fees.
How to Determine If You Need an $80,000 Loan
There are many reasons why taking out a personal loan can make sense. Personal loans can help you consolidate your debts at a low rate and save a lot on interest or cover big expenses like home renovations, vacations or weddings.
However, taking out an $80,000 loan is expensive. It’s vital to understand how much of a loan you need and why you need it before applying. It may be that a lower loan amount covers your needs and better suits your financial situation. In addition, you pay less interest and costs if you choose a lower amount.
