You can use a personal loan for many reasons, but if you’re looking for a higher amount, qualifying will be tougher.
The average personal loan balance is around $16,000, and Americans have nearly 43 million personal loan accounts, according to Experian. But what if you need a large personal loan – like $70,000?
You’ll likely need good to excellent credit to qualify for a $70,000 personal loan, although you may be able to qualify with a cosigner if your credit is only good or fair.
Where to get a $70,000 personal loan
You can find a $70,000 personal loan at some banks and online lenders. But you might not have that many options, as few lenders offer personal loans this large. In fact, many credit unions don’t offer $70,000 personal loans at all. The application process is typically the same, but the time to fund can vary greatly.
Online lenders
An online loan is typically both convenient and practical. You might also have a few more options to choose from when you’re looking for a $70,000 loan from an online lender. But some online lenders charge higher fees and interest rates for borrowers with poor credit.
Once you’re approved for a personal loan from an online lender, you can generally get your money quickly. Many online lenders can fund a loan as quickly as the next business day, although five days or fewer is typical.
Banks and credit unions
It may be difficult to find a bank that offers personal loans for more than $50,000, even if you have excellent credit. That’s why it pays to shop around. Also, if you have a long-standing relationship with a bank, they may be willing to go the extra mile for you.
As with banks, it may be difficult to find a credit union that offers $70,000 personal loans. You’ll have to join the credit union (and meet its membership eligibility requirements) in order to get a loan, but if you do qualify, you may find more favorable rates. Since credit unions are member-owned and not-for-profit entities, they tend to have better interest Get the facts rates than other options.
How do I apply for a $70,000 loan?
To qualify for such a large amount, you’ll need to prepare. Check out these tips to put your best foot forward when you apply:
- Crunch the numbers. Use a personal loan calculator to get an idea of how manageable your loan payments will be.
- Check your credit score. Your credit score can be a deciding factor in the approval process for your loan. It’ll also affect your APR significantly. Improving your credit before applying can often mean the difference between qualifying for a $70,000 loan and finding alternative funding.
- Estimate monthly payments. Based on your income and general expenses, determine how much you feel you can comfortably afford each month. This will give you an idea of the terms you’ll need to meet your monthly payments.
- Compare lenders. You may find only a handful of lenders willing to offer a $70,000 personal loan. Even so, take the time to compare lenders to find out if they offer secured or unsecured loans, and what APR they offer.
- Seek pre-approval. Take advantage of pre-approval if it’s available. It won’t affect your credit score, but it can give you an idea of what your monthly payments might be.
- Gather your paperwork. Lenders will want to see your employment history and proof of income. They’ll also look at your current debts, assets, and latest tax returns. If you already have this information in hand, it can greatly speed up the process.