Our guide to the best lenders for a $50,000 personal loan
If you need to borrow a large sum of money, several lenders offer personal loans up to $50,000. A $50,000 personal loan could fund a home renovation, consolidate maxed-out credit cards, finance an elective surgery or cover multiple large expenses.
Here’s what makes our picks for the best $50,000 loan stand out.
Adding collateral to a personal loan could improve your chances of approval or of getting a lower interest rate. Best Egg offers two types of secured personal loans — one that uses a vehicle as collateral and a more unique option that uses fixtures in your home (like kitchen cabinets and bathroom vanities) as collateral.
Applying for a personal loan with a co-borrower may increase your odds of being approved for a large personal loan, particularly if your co-borrower has a higher credit score or income. LendingClub lets co-borrowers pre-qualify together to preview potential offers prior to completing the formal loan application. Once you’re approved and the loan is funded, you’ll have two people to share in the repayment, which can make the large monthly payments on a $50,000 loan more manageable.
LightStream offers loans up to $100,000 and repayment terms up to 20 years to fund home improvement projects. This lender doesn’t charge origination fees and has same-day funding, so you can get started on your renovation project right away.
SoFi: Best for fast-funded loans
SoFi offers same-day funding, even for borrowers who complete their loan applications later in the day. The lender says the majority of typical personal loan applicants who signed loan documents by 6 pm ET on a business day were funded that same day.
Upgrade: Best for debt consolidation
If you’re using the loan to consolidate debt, Upgrade will send the loan proceeds directly to your creditors, saving you a step in the process. The lender also has rate discounts up to 3 percentage points if you opt for direct payment for debt consolidation.
Upstart: Best for thin- or low-credit borrowers
Upstart uses an AI-powered underwriting model that factors in non-traditional criteria, like college education and work experience, when making loan approval decisions rather than focusing predominantly on credit scores. The lender doesn’t have a set credit score requirement and considers applicants with thin credit histories and bad credit (scores from 300 to the high 500s).
Estimated costs of a $50,000 personal loan
How much you’ll pay each month for a $50,000 loan will depend on your annual percentage rate and the loan’s repayment term. The lower the APR, the lower the cost of the loan. A loan with a shorter repayment term will have larger monthly payments, but you’ll pay less in interest overall. A longer term gives you lower monthly payments but will result in a higher total interest cost.
Here are the costs of a $50,000 personal loan at various rates and repayment terms.
Term | APR | Monthly Payment | Total Interest |
|---|
3 years | 14% | $1,709 | $11,520 |
3 years | 20% | $1,858 | $16,894 |
6 years | 14% | $1,030 | $24,181 |
6 years | 20% | $1,198 | $36,230 |
Use a personal loan calculator to see how different rates and terms affect your monthly payments and to see the total interest you can expect to pay over the life of the loan.
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
PRINCIPAL AMOUNT — $10,000TOTAL INTEREST PAID — $1,156.95
Another thing to keep in mind regarding the cost of your loan is the origination fee, if your lender charges one. Origination fees typically range from 1% to 10% of the total loan amount, and lenders often deduct the fee from your loan amount before disbursing the funds.
This means if you’re approved for a $50,000 loan with a 5% origination fee ($2,500) that’s deducted upfront, you’ll see only $47,500 hit your bank account when the loan is funded.
How to qualify for a large personal loan
Lenders review a loan applicant’s credit, income and current debts to evaluate the likelihood of timely loan repayment. Approval chances for a $50,000 personal loan are better if you have good or excellent credit (a score in the mid-600s or higher), high income and a low debt-to-income ratio. Make sure to check your credit report before applying for a loan to see if there is anything bringing down your score that you can easily address, such as an incorrect account balance you can dispute with the credit bureaus. You may increase your odds of being approved for a $50,000 loan by adding a co-borrower with a higher credit score or annual income or pledging a valuable asset as collateral for a secured personal loan. How to get a $50,000 personal loan
Check your budget and credit. Determine what monthly payment you can afford, and whether your credit score meets lenders’ requirements. You can check your credit score for free on NerdWallet. Pre-qualify with lenders. Pre-qualification lets you check your likelihood of loan approval and preview your estimated rate, term and monthly payment — all with a soft credit pull, which doesn’t affect your score. Pre-qualify with multiple lenders to compare offers and find the best one. Submit a formal application. Once you’ve determined the best pre-qualified offer, you’ll complete a formal loan application. The lender may ask for documents like paystubs or tax returns to confirm the information you’ve provided. The lender will perform a hard credit check at this point, which can cause your credit score to dip by a few points. Read and sign loan documents and begin repayment. If your application is approved, you’ll get a loan agreement to sign. Make sure you understand all the fine print, including details about fees and consequences of missed payments. The lender typically disburses funds within a day or two of signing the documents, though the money may be sent the same day or take up to a week. The first payment is usually due about 30 days later.
Alternatives to a large personal loan
Depending on your purpose for borrowing the money, there may be cheaper alternatives than a personal loan.
Consider a home equity loan or home equity line of credit for home improvement projects. Rates are generally lower and repayment terms can be longer than personal loans, but the lender can take your home if you don’t keep up with the payments. Look into debt management as an alternative to debt consolidation. With a debt management plan, you’ll work with a credit counselor to pay off your debt. Ask about a payment plan with the doctor’s office or hospital for medical expenses your insurance doesn’t cover. The payment plan could have lower costs than a personal loan.
