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Get a $50,000 personal loan
Get competitive rates and terms when you take out a $50,000 personal loan.
Updated . What changed?
Whether you need money to consolidate your debts or to pay off a big project, you could benefit from a $50,000 personal loan. Find out how to get a $50,000 loan with competitive interest rates and terms, and compare lenders to find the right fit for you.
What's in this guide?
- Compare $50,000 personal loans
- What types of $50,000 personal loans can I apply for?
- How can I qualify for a $50,000 loan?
- How much will it cost me?
- Six tips to get the most competitive offer
- How to apply for a $50,000 loan
- Six things to keep in mind before you apply for a $50,000 loan
- What happens after I get my loan?
- Bottom line
- Frequently asked questions
Compare $50,000 personal loans
What types of $50,000 personal loans can I apply for?
There are several different types of $50,000 loans you can benefit from. Some of the most common options include the following:
- Secured loans. Secured loans can provide you with up to $50,000 as long as you’re willing to put up an asset such as your home or vehicle to secure your loan. Just keep in mind that this asset can be sold to cover your payments if you default.
- Unsecured loans. Unsecured personal loans have more stringent requirements if you want to borrow $50,000 or more. You’ll usually need to have a credit score of at least 650 to qualify (and your score will go down if you don’t make your payments).
- Guarantor loans. Guarantor loans may be a good way to get a $50,000 personal loan if you have a poor credit score. In this situation, you can ask a friend or family member with a good credit score to cosign with you. This may let you qualify for a larger amount with better interest rates than you would be able to otherwise.
- Online loans. If you can’t seem to qualify for financing with the bank, you can also look into getting an online $50,000 loan. Just be careful that you do your research before deciding on a provider to avoid loan scams. Make sure they have good online ratings and a solid reputation for customer service.
Borrowing $50,000 using a home equity loan
Putting up your home as collateral to secure your $50,000 loan can help you get the lowest interest rates. You should only consider doing this if you’re 100% sure you can make your payments on time. This is because your house could be repossessed if you fail to pay back your loan on time. Compare rates for home equity loans below.
How can I qualify for a $50,000 loan?
To qualify for a $50,000 loan, you’ll typically need to meet the following criteria:
- Have an excellent credit score. You’ll often need an “excellent” credit score of 800+ to qualify for a $50,000 loan. You may also be eligible if you have a “good” to “very good” score of 650+, depending on which lender you use.
- Have a strong credit history. Lenders prefer to work with borrowers who have a long history of paying back debts on time. You’ll generally need to have at least 3-4 years of history on your credit report to qualify for a $50,000 loan.
- Earn a high income. Lenders don’t typically like to give out loans unless you have a significant income and consistent employment. They’ll usually check your pay stubs and ask for tax documents to make sure you can afford your loan.
- Have a low debt-to-income ratio (DTI). On top of having a high income, lenders also like to see that your monthly debts take up no more than 43% of your monthly income.
- Own an asset to use as collateral. If you don’t meet the other criteria, you may be able to use an asset such as your home or vehicle to secure a $50,000 loan. Just make sure you can make repayments or your asset could be repossessed to pay back your loan.
How much will it cost me?
The main costs you need to worry about for personal loans are interest rates and fees (or a combination of both, known as APR).
- Interest rates. Interest rates can vary between 3% and 50% for a $50,000 loan, depending on factors such as your credit score and which lender you choose. You can sign up for fixed rates if you want consistent monthly payments or variable rates if you want your payments to fluctuate along with the prime rate.
- Fees. You might have to pay additional fees to get your loan up and running. These can include origination fees, sign-up fees, late payment fees and prepayment fees. Your best bet is to look for a lender that charges minimal fees or none at all. This will leave you with smaller repayments and lower costs for your $50,000 loan.
- Annual Percentage Rate (APR). Most lenders add the interest rates and fees on your loan together to come up with your annual percentage rate (APR). Comparing this number across various loans and providers can help you get a full idea of how much you’ll have to pay.
Choosing the right loan term for your $50,000 loan
Loan terms typically range anywhere from 6 months to 10 years. The rule of thumb is to look for the shortest loan term available that still gives you payments that fit your budget. This will make sure you can pay off your loan in the fastest time possible, and you’ll save money on interest in the process. Compare 3 different loan terms for a $50,000 loan below to see what we mean:
|Term||Interest rate||Monthly payment||Total interest paid|
As you can see, if you take a 3 year term instead of a 5 year term, you’ll pay $551 more per month but you’ll also pay your loan off 2 years faster and save over $5,000 in interest.
Six tips to get the most competitive offer
Follow the tips below to secure the lowest interest rates on your $50,000 loan:
- Shop around. Source quotes from at least three to four providers, and negotiate your rates down wherever possible. Make sure to include several types of providers in your comparison, including big banks, credit unions and online private lenders.
- Check your credit score. Know what your credit score is and make sure it’s above 650 if you plan to apply for a $50,000 loan. If you don’t have a high enough score, you can try to build your credit score or think about getting a secured or guarantor loan.
- Pay down your other debts. Pay down money you owe on other debts before you apply for a $50,000 loan to bring down your debt-to-income ratio. The lower your ratio, the more chance you’ll get the lowest interest rates available.
- Make yourself look like an ideal borrower. Collect evidence that you have a stable job and have lived at the same residence for many years. This will demonstrate to your lender that you’re a stable and reliable person who is less likely to default on payments.
- Sign up for autopay. You may be able to get discounted rates on your $50,000 loan if you sign up for autopay. This will pull your payments automatically from your bank account and you could get a better rate in the process.
- Fix errors on your credit report. You may have errors on your credit report that are bringing your credit score down. Find out how you can fix these mistakes so that your credit score goes up and you qualify for better rates.
How to apply for a $50,000 loan
Follow these steps when filling out your application for a $50,000 loan:
- Visit your lender’s online website to fill in an online application. This should take only a couple of minutes if you have the necessary documentation on hand.
- Input personal information such as your full name, date of birth, address, phone number and email.
- Provide financial details such as your bank name and transit number.
- Submit to a credit check or fill out the necessary paperwork to put up an asset as collateral to secure your loan.
Loan eligibility requirements
To qualify for a $50,000 loan, you may need to meet the following eligibility requirements:
- You must be at least 18 years old or the age of majority in your province or territory.
- You’ll need to be a Canadian citizen or a permanent resident with a valid Canadian address and two valid pieces of identification.
- You must be able to demonstrate that you can pay off your loan by showing pay stubs, tax statements and other financial documents.
- You may need to provide additional details such as your debt-to-income ratio and information about your assets (especially if you intend to use one to secure your loan).
- You’ll usually need to have a bank account to apply for a loan online.
Six things to keep in mind before you apply for a $50,000 loan
You may want to consider some of the following tips before you sign up with a lender:
- Know your credit score. You can receive a copy of your credit report from one of Canada’s two main credit bureaus (Equifax or TransUnion). If your score is above 650, you should be in good shape to apply for a $50,000 loan. If it’s lower, you may need to consider putting up an asset or getting a cosigner to help you qualify.
- Make sure you meet the requirements. Some lenders have additional eligibility requirements for larger loans – such as owning a home. Even if you have excellent credit and make six figures, you may want to double-check the eligibility requirements with your lender before taking the time to apply.
- Know your priorities. Do you need money fast or would you prefer to get a lower rate? Are you looking to pay the loan back quickly or over a longer period of time? Having a clear list of your priorities can help you narrow down lenders fast and choose the best lender for you.
- Do your research. Compare multiple lenders and make sure the one you settle on has good reviews. To double-check that a lender is legitimate, you may want to read online reviews or customer comments to find out more about the pros and cons of each company. Avoid lenders that have negative reviews or don’t sit well with you.
- Get pre-approved if possible. Many lenders offer a quick pre-approval application that gives you a more accurate idea of what you’ll pay. You won’t want to do this with every lender since it can take time, but it could help tip the scales once you’ve narrowed your choice down to a handful of options.
- Ask questions while you apply. Making a mistake on your application is a surprisingly common reason why you might get rejected for a $50,000 loan. To mitigate this, you can call customer service to get help with your application if you’re unclear about anything. You should also double-check your application before you click submit.
What happens after I get my loan?
Once you get your money deposited, you have to begin making payments on your $50,000 loan according to a set schedule. These payments can be weekly, bi-weekly or monthly payments, depending on what you’ve specified in your loan contract.
You might want to consider setting up automatic payments so you don’t have to take the time to manually pay each month. Some lenders even offer a small discount on interest to borrowers who pay automatically.
You may be able to qualify for a $50,000 loan if you meet certain criteria. Making sure you start with a good credit score or have an asset to secure your funds with can help you get approved. Find out more about how to get a $50,000 loan, and compare lenders to find the most competitive rates and terms on the market.
Frequently asked questions
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