How to Get a $50,000 Personal Loan

The 2022 J.D. Power U.S. Consumer Lending Satisfaction Study called personal loans a “financial lifeline,” especially for those who are financially vulnerable. If you have high-interest debt or a house in dire need of renovations, a $50,000 personal loan can provide the necessary funding to improve your financial situation and, by extension, your quality of life.

According to the Federal Reserve, borrowers in the U.S. have 36.2 million personal loan accounts. Consumers like the flexibility of personal loans because they can use the funds at their discretion, whether that’s to pay for medical bills, consolidate debt, or make a large purchase.

To qualify for a $50,000 personal loan, lenders evaluate your FICO credit score, credit report from all three credit bureaus, income, and debt-to-income ratio to ensure you can pay on time. Personal loan lenders include banks, credit unions, and many online fintech lenders. Keep reading because we’ll share which lenders we recommend, the average payment on a $50,000 personal loan, and the pros and cons to consider before you apply for one.

What lenders offer personal loans for $50,000?

Many lenders offer loans for up to $50,000. Mintel data estimates that lenders sent approximately 1.5 billion personal loan offer mailers in 2022 alone. However, just because a lender advertises a $50,000 personal loan doesn’t mean you will qualify for that much.

A lender will review your credit history, income, and debt payments to decide whether to extend a personal loan to you. Be careful of predatory lenders that advertise unrealistic interest rates or promise certain loan limits. Always verify a lender’s reputation by researching its rating with the Better Business Bureau.

Based on our research, here are five recommended and reputable lenders where you can apply for a $50,000 loan. Keep in mind that the annual percentage rate includes several factors, such as loan fees and origination fees.

Lender	Rates (APR)	Loan amounts
Credible	7.49% – 35.99%	$600 – $200,000
LightStream	7.49% – 25.49%	$5,000 – $100,000
SoFi	8.99% – 29.49%	$5,000 – $100,000
Upgrade	8.49% – 35.99%	$1,000 – $50,000
Upstart	7.8% – 35.99%	$1,000 – $50,000

Credible – Best marketplace

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LendEDU rating: 5.0 out of 5

• Wide range of loan options
• User-friendly platform
• Free to use

Credible is a top-tier loan marketplace that offers a diverse array of loan options for different needs. With its user-friendly platform, you can compare loan products to find the one that best suits your unique needs. This service is free to use, making it an excellent starting point when seeking a personal loan.

Credible is committed to transparency and personalized offers. Unlike some competitors, Credible performs a soft credit check that won’t lower your credit score, ensuring you can explore your options worry-free. This feature is beneficial for those who are cautious about affecting their credit score while shopping around for the best rates. 

LightStream – Best for excellent credit

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LendEDU rating: 4.8 out of 5

• Competitive interest rates
• No fees
• Quick funding

LightStream offers competitive interest rates and doesn’t charge fees on its loans. LightStream is our top lender for those with FICO credit scores of 740 and higher. It promises to beat any qualifying interest rate from another lender by 0.10 percentage points. This ensures borrowers can get the financial support they need under the most favorable terms available. 

LightStream’s application process is streamlined and user-friendly, catering to those with strong credit profiles seeking a hassle-free borrowing experience. The lender offers a wide range of loan purposes—from auto loans to home improvement and debt consolidation—giving borrowers flexibility. LightStream also offers a Loan Experience Guarantee that promises a satisfactory process or your money back.

SoFi – Best for good credit

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LendEDU rating: 5.0 out of 5

• No origination fees required
• Unemployment protection
• Financial planning and resources for borrowers

SoFi stands out for borrowers with FICO credit scores of 670 and up. It doesn’t charge origination fees and offers unemployment protection. In the event of job loss through no fault of their own, borrowers can apply for forbearance, suspending monthly loan payments while they get back on their feet. This level of support offers peace of mind and security to borrowers during uncertain times.

Beyond personal loans, SoFi members gain access to a suite of financial planning tools and resources designed to empower them to manage their finances more effectively. From complimentary financial advising sessions to budgeting tools and educational content, the platform is geared toward helping individuals achieve financial independence. 

Upgrade – Best for fair credit

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LendEDU rating: 4.9 out of 5

• Affordable rates for fair credit
• Flexible loan terms
• Credit health tools

Upgrade‘s comprehensive approach to financial health enhances its appeal to individuals whose FICO scores fall in the range of 670 to 739. Its credit health tools offer users personalized recommendations to improve their credit scores. This proactive approach helps borrowers not only secure a loan but embark on a path toward better financial practices and higher credit scores over time.

Upgrade distinguishes itself with features designed to cater to the unique needs of borrowers with fair credit. One such feature is the direct payment to creditors for debt consolidation loans, simplifying the process of paying off multiple debts and potentially improving credit scores by consolidating debt into a single, manageable payment.

Upstart – Best for little to no credit

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LendEDU rating: 4.8 out of 5

• Considers more than just your credit score
• Quick online approval and funding
• Clear and straightforward fees

Upstart‘s innovative approach to loan eligibility sets it apart, especially for individuals with a thin credit history. By using artificial intelligence and advanced data analytics, Upstart evaluates a wider range of factors—including education, employment history, and income—to make lending decisions. This method offers a more nuanced understanding of a borrower’s financial health and potential, opening up opportunities for those traditional credit scoring systems might overlook. 

Upstart’s commitment to a transparent and straightforward fee structure eliminates surprises, allowing borrowers to plan their finances with confidence. The rapid online approval and funding process is another hallmark of Upstart’s service, addressing the need for efficiency and speed in financial transactions. Borrowers can expect a seamless experience from application to funding, often receiving their loans as fast as one business day after approval. 

How to get a $50,000 personal loan

A $50,000 loan is a large loan that typically requires a good credit score, high income, and a debt-to-income ratio that allows for larger payments. Your eligibility will depend on these personal factors and your specific lender.

Here are six steps to take if you want to qualify for a $50,000 loan.

1. Check your credit: It’s important to check your credit report before applying for a $50,000 loan. You don’t want to get denied alone because your credit report has errors. You are eligible to get a free credit report from each of the three main credit bureaus. Look over your report and make sure all your information is correct. In the adverse account section, be sure nothing is in collections. If it is, contact the number next to the account and settle your debts prior to applying for a personal loan.
2. Compare lenders: It’s important to compare three to five lenders. You can use a loan aggregator website, such as Credible, to compare multiple lenders at once, or you can apply directly to several. This will take one to two days. Make a note of each lender’s loan terms, APRs, and fees. Also, consider any extra perks you might use, such as access to a financial planner or reduced interest if you enroll in autopay.
3. Gather your documents: This will take one to two days. You’ll need your employment documents, previous years’ tax documents, profit-and-loss statements if you’re self-employed, and identifying documents, such as your driver’s license. Gathering your documents ahead of time will ensure you can apply faster when you sit down.
4. Fill out an application: Depending on the lender, the application process will take one to two days. However, if you have your documents ready, you can usually complete it quickly.
5. Review the offers: If lenders extend a loan offer, take a day to review the loan terms. Look at the origination fees, the repayment schedule, and your APR. Some lenders offer to beat their competitors’ rates, so you can show a lender a competitor’s offer to try to get an even lower rate. This can take a few days.
6. Accept the loan: Once you choose a specific offer, accept the loan and sign your documents. Depending on the lender, you can have access to your loan and as little as a day or two.

In all, the process should take around two weeks to a month to complete, but the true length of time it takes to apply for a $50,000 personal loan depends on the lender.

How to repay a $50,000 personal loan

Understanding repayment strategies can help you manage your $50,000 loan more effectively and, ideally, pay it back early. Here are examples of repayment strategies.

Make extra payments  

If you make extra payments on your loan amount, it can help reduce your long-term interest costs and the length of the loan itself. Even rounding up to the nearest $50 can go a long way in lowering your loan. Speak with your lender to ensure that all extra payments you make go to your principal. This is important because not all lenders (if any) have additional payments set as a default to pay principal only.

Use windfalls

If you receive any windfalls, such as a holiday bonus from work, an unexpected inheritance, or a tax refund, allocate a portion of that windfall to make an extra payment on your loan. It can be tempting to book the next flight to Cabo or to buy a new car you don’t actually need when you get unexpected cash, but by focusing on paying your loans early, you can free up your cash flow sooner.

Refinance 

In the future, you might be eligible for a loan with a lower interest rate. If that’s the case, you can explore the option of refinancing your loan to another. This can help reduce the amount you’re paying in interest over time, which can help you pay off your $50,000 loan faster.

What are the payments on a $50,000 personal loan?

Your monthly payments on a $50,000 personal loan will depend on the interest rate and your loan term. Your interest rate depends on several factors, including your credit history. Some lenders offer lower interest rates for shorter loan terms because it means they’ll recoup their money faster.

Check out the examples of monthly payments for a $50,000 personal loan with different interest rates below.

	Loan A	Loan B	Loan C
Rate	6%	8%	11%
Term	5 yrs.	8 yrs.	10 yrs.
Mo. payment	$967	$707	$689
Total interest	$7,998	$17,856	$32,650

If you want to see examples of other types of personal loan payments, use our personal loan calculator.

Pros and cons of a personal loan up to $50K

Here are the pros and cons to consider before applying for a $50,000 personal loan.

Pros

• Predictable monthly payments

  Personal loans typically have fixed monthly payments, which make it easy for borrowers to budget and plan their finances.

• Fixed interest rates

  Personal loans tend to have fixed interest rates, which means borrowers don’t need to worry about economic uncertainty affecting their interest rates.

• Unrestricted use of funds

  One of the most significant benefits of a personal loan is that borrowers can use the loan for whatever they like. They can use it to consolidate debt, pay for a home renovation, or for anything else they need.

Cons

• Potential impact on credit score

  When you apply for a personal loan, lenders usually do a hard pull on your credit, which can drop your score by a few points. However, this is usually offset by an improvement to your credit score by adding to your credit mix and making on-time payments.

• Risk of default if you can’t pay

  There are consequences to your credit if you can’t pay. If you can’t make your payments on time, you might face collections or even legal proceedings.

• Origination costs

  Personal loans have origination fees, which can be up to 10% of the loan’s value. These are additional costs that go to the lender and do not pay down your principal.

Other ways to borrow $50,000

If you need to borrow $50,000 but you don’t want to use a personal loan, you have a few options to consider. If you are a homeowner, several home equity lending products are on the market.

Home equity line of credit (HELOC)

A HELOC is a line of credit similar to a credit card. You get approved up to a certain amount, and you can draw on it as needed. Your home is your collateral with this type of credit, so it’s essential to make your payments on time.

Home equity loan

According to the Federal Trade Commission, you could borrow up to 80% of your home’s available equity with a home equity loan. Similar to the HELOC, if you don’t make your payments on time, the lender could foreclose on your home.

Home equity investment 

A home equity investment (HEI) is another option for homeowners. With an HEI, homeowners sell a portion of their home’s equity to a company. No monthly payments are required. Rather, the HEI partner earns money when the homeowner sells or buys back their equity.

401(k) loan 

With a 401(k) loan, you borrow from your own retirement plan. The IRS requires you to pay back the loan within five years and make quarterly payments if you want to avoid your loan counting as an early withdrawal, which comes with a 10% early distribution tax. 

Keep in mind that using these funds now can hurt your retirement plans, so use this option with caution, extra research, and sufficient planning.

Erin Kinkade

CFP®

Peer-to-peer lending 

Many websites offer peer-to-peer lending. This is when individual investors loan money to borrowers. It’s a lending alternative for those who want to loan money to others and borrow money from others without going through traditional banks.

Credit cards

There are pros and cons to using credit cards when you need money. Sometimes, credit cards come with introductory 0% APR rates, which can be helpful if you’re confident you can pay the money back quickly. The main drawback with credit cards is they can have sky-high interest rates, which can trap you in a debt cycle.

Co-borrowers or cosigners

If you don’t qualify for a personal loan on your own, you can also opt to apply with a co-borrower or cosigner. A cosigner guarantees the loan if you can’t or don’t make payments. Lenders weigh their credit history and income when making loan decisions. A co-borrower fills out a joint application with you. Lenders evaluate co-borrowers equally.

Here is a list of recommended lenders that allow co-borrowers to apply for personal loans. You can also visit our recommended marketplace, Credible, for lenders that allow co-borrowers and cosigners.

Recommended lenders that allow co-borrowers

• LightStream
• SoFi
• Upgrade

FAQ

What is the minimum credit score required to qualify for a $50,000 personal loan?

The minimum credit score required for a $50,000 personal loan can vary by lender. A borrower may need a credit score of 660 or higher to qualify. A higher score increases your chances of getting better loan terms.

Can I apply for a personal loan if I’m self-employed or have irregular income?

Yes, you can apply for a personal loan if you’re self-employed or have irregular income. You may need to show proof of consistent income over a certain period, such as two years. Income stability is a crucial factor for lenders to assess your loan repayment capability.

How long does it take to receive the funds once I’m approved?

The time it takes to receive funds after approval can vary based on the lender. Some lenders may provide the funds the next business day after approval, but others can take up to a week.

Are there restrictions on how I can use a personal loan?

Generally, there are few restrictions on how you can use a personal loan. You can spend it on debt consolidation, home improvements, or expenses for a wedding. It’s best to use personal loans for responsible financial purposes.

What happens if I miss a payment on my personal loan?

Missing a payment can lead to various consequences, such as late fees, increased interest rates, and a potential negative impact on your credit score. It’s important to ensure on-time payment and contact the lender when facing financial strain.

Can I pay off my personal loan early, and are there any penalties for doing so?

Yes, you can pay off a personal loan early. Prepayment penalties are rare, but some lenders may charge them. Be sure you understand the terms and conditions around early loan repayment with the lender.

How do lenders determine the interest rate for a $50,000 personal loan?

Loan interest rates are influenced by your credit score, income stability, loan duration, and the lender’s policy itself. The better your credit score and financial stability, the lower your interest rate may be.

Recap of lenders offering $50,000 personal loans

Lender	Rates (APR)	Loan amounts
Credible	7.49% – 35.99%	$600 – $200,000
LightStream	7.49% – 25.49%	$5,000 – $100,000
SoFi	8.99% – 29.49%	$5,000 – $100,000
Upgrade	8.49% – 35.99%	$1,000 – $50,000
Upstart	7.8% – 35.99%	$1,000 – $50,000