Key Takeaways
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Loans for this amount are offered by banks, credit unions and online lenders. The latter often has fast financing times.
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With an excellent credit score, you will typically qualify for the lowest rate on a loan of this size.
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Most importantly, evaluate the need and cost of a $50,000 personal loan to determine if it makes sense for your financial situation.
Larger loans of $50,000 are available through banks, credit unions and online lenders. But before you apply, assess whether you need a loan for this amount or whether a smaller loan will suffice.
You should also become familiar with what lenders look for in applicants. Get at least three loan quotes and look for the lowest rates on personal loans. This will help you assess whether the benefits of taking out a $50,000 personal loan outweigh the costs of borrowing.
Where can you get a $50,000 personal loan?
You can get a $50,000 personal loan from a traditional bank or credit union. Online lenders are also an option, and many have a simple application process and fast financing times.
| APR range | Range of the loan amount | Minimum credit score requirement | |
|---|---|---|---|
| LightStream | 7.49%-25.49%* * with AutoPay | $5,000 – $100,000 | 695 |
| SoFi | 8.99%-29.49%* with autopay | $5,000 – $100,000 | 680 |
| Upgrade | 9.99%-35.99% *with automatic payment | $1,000 – $50,000 | 600 |
| Best egg | 7.99%-35.99% | $2,000 – $50,000 | 600 |
LightStream
If you have good or excellent credit, LightStream is worth considering. It offers some of the lowest interest rates on personal loans in the industry, and borrowers can select a loan term and financing date that works best for them. Even better, there are no origination fees and no prepayment penalty if you decide to pay off the loan early. LightStream will also beat a competitor’s rate for a comparable personal loan product by 0.1 percent through the Rate Beat program.
SoFi
SoFi offers prequalification in just 60 seconds without impacting your credit score. You may be able to receive your loan on the same business day if you are approved before 7:00 PM ET. In addition to the simplified application process, SoFi also offers its customers other benefits, including free access to career education resources, rewards and financial planning. You can get a small interest discount if you sign up for autopay.
Upgrade
A $50,000 personal loan from Upgrade may be ideal if you have fair credit. Bankrate users who took out a loan with Upgrade received their money within 3.5 days on average. You can choose a term from two to seven years and a monthly payment that fits your budget. However, you pay an origination fee between 1.85 percent and 9.99 percent when you borrow a loan.
Best egg
If you have a credit score above 700 and an income of at least $100,000, you can get Best Egg’s competitive lowest rate. Loans are also available to borrowers with lower credit scores – just expect higher rates. You can get approved and financed on the same day, and there are no prepayment penalties if you choose to pay off the loan ahead of schedule. However, Best Egg charges an origination fee between 0.99 percent and 9.99 percent.
How to Get a $50,000 Loan
It depends on the lender, but most will assess your creditworthiness and debt-to-income ratio. Lenders want to know that you have used debt products responsibly in the past and that you can afford to make on-time monthly payments on a new loan.
Your credit score sheds light on how you manage outstanding debts. Lower interest rates are generally reserved for borrowers with good or excellent credit. As of April, the average interest rate on personal loans for consumers with excellent credit ranged from 10.73 percent to 12.5 percent, compared to 28.5 percent to 32 percent for borrowers with poor credit.
When you’re ready to apply, follow these steps to give yourself the best chance of getting approved for a $50,000 loan:
Step 1: Check your credit. Good or bad credit doesn’t necessarily mean you can’t get a $50,000 personal loan. But you can expect to pay much more in interest over the life of the loan. The lender may also require you to have a cosigner with exceptional credit to approve you for a loan.
Step 2: Understand the lending guidelines. In addition to credit scores, most lenders will also evaluate your debt-to-income ratio when deciding whether you are suitable for a loan. It is the percentage of your gross monthly income used to cover the minimum monthly debt payments. If this number is on the higher side, lenders may be hesitant to approve you or charge much more interest because the risk of default is higher.
Step 3: Get prequalified. Explore different lenders and get prequalified with at least three. Doing this will help you compare loan offers without negatively impacting your credit score.
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- Proof of identity: driver’s license, state-issued ID, passport, certificate of citizenship, birth certificate, Social Security card, or military ID (Note: Most lenders require two forms of identification)
- Proof of address: mortgage statement or rental agreement, proof of insurance (home, renter or car), utility bill, voter registration card, property tax receipt or bank statement
- Contact details of your employer: name of employer, telephone number and email address of supervisor
- Proof of income (traditional employment): pay stubs, tax returns, W-2s and 1099s or bank statements
- Proof of income (self-employed): bank statements, income tax returns or 1099s
Step 4: Gather documentation. In most cases, you will be required to provide the lender with identifying information and documents when you apply. This includes proof of identity, address and income documentation, along with your employer’s contact details.
Step 5: Formally apply for a loan. Complete a loan application online or in person with your chosen lender (if applicable). Be sure to review the content for accuracy and submit all required documentation properly to avoid hiccups in the lending process.
Step 6: Receive a credit decision. If approved, review the loan agreement and sign the contract. Most lenders disburse funds electronically, but the financing timeline varies. You can receive the loan proceeds within one to a few business days.
Cost of a $50,000 long-term personal loan
Ideally, you want a loan with a short repayment period and a low interest rate to minimize costs. Some borrowers choose an extended loan term to get affordable monthly payments, but there are a few drawbacks. You pay more interest because the lender has more time to collect from you. In addition, personal loans with longer terms tend to have higher interest rates.
To illustrate, suppose you receive a personal loan of €50,000. Here’s what you can expect in terms of monthly payments and loan costs based on the loan term you select:
| Loan term | Interest | Monthly payment | Total interest paid |
|---|---|---|---|
| 3 years | 12.5 percent | $1,673 | $10,216.53 |
| 5 years | 14.5 percent | $1,176 | $20,584.84 |
The longer terms save you almost $500 each month, but double the total amount you pay in interest over the life of the loan.
Is taking out a personal loan of €50,000 the right choice?
How do you plan to use the loan proceeds? Do you want to cover a major expense, a financial emergency, renovate your home or consolidate high-interest debt? If not, do you have a compelling reason to borrow such a large amount?
Grab a notebook and calculate the exact amount you need. It can be tempting to ask the lender for a lot more, especially if you have little or no money saved. Still, you run the risk of borrowing more than you can afford to pay back, incurring late fees and damaging your credit score.
However, there are circumstances that justify a larger loan amount than you actually need. Home improvement projects and special events, such as weddings, often run slightly over budget. It may therefore be wise to overestimate your expenses and apply for a loan for this amount.
Alternative financing options
If you’re not quite sold on the idea of taking out a €50,000 loan, consider these alternatives:
- Credit card: The APR on credit cards is generally high and few are approved for such high credit limits. But if you don’t need all the money at once and can pay it back quickly to avoid high interest charges, a credit card may be an option.
- Mortgage interest deduction: With this loan product you can borrow against the equity of your home. It comes with a fixed interest rate, often lower than what you get with a credit card, and a fixed monthly payment. Because your home is secured by a home equity loan, you could lose your home if you don’t pay.
- Home Equity Line of Credit (HELOC): Like a credit card, a HELOC gives you a preset spending limit that you can use as needed. The line is replenished as you repay the money you borrowed, and you can use it until the draw period ends. Because your home equity secures a HELOC, it typically has a higher spending limit and a lower rate than a credit card.
The bottom line
A $50,000 personal loan can help you achieve a financial goal or provide some much-needed relief. Either way, be sure to evaluate lenders and consider the cost of borrowing before applying for financing. The most important thing is that you only borrow what you need. You want to avoid unnecessary debt and making your budget too small.
