You may have multiple five-figure debts that you want to consolidate into one monthly payment. Or, maybe you just bought a fixer-upper home and want to take out a loan to make all the necessary renovations. When you’re looking to borrow $100,000, you’ll need a lender that offers large personal loan amounts.
Fortunately, there are other trustworthy options beyond your bank for large personal loans. Read our guide to learn more.
5 steps to getting a $100,000 loan
Check your credit score. Request your credit report to find out your credit score before applying. This can help you narrow down lenders that will work with your credit situation.
Compare lenders. Compare lenders to find an affordable APR (annual percentage rate). Keep a close eye on whether lenders offer secured or unsecured loans, especially if you don’t have the assets to use as collateral.
Apply for preapproval. Many lenders let you apply for loan preapproval to see what rates you might get without affecting your credit score. Preapproval can also show you if you can comfortably afford repayments and help narrow down your choice of lenders.
Submit your paperwork. Lenders may ask to see proof of income (recent pay stubs, bank statements or Notice of Assessments) as well as assets, employment info, current debts and proof of residency (bill or bank statement showing your name and address). Have all your information handy when applying to avoid delays.
Sign your loan agreement. If approved, review your loan agreement and sign it. Most lenders offer funding in 1-2 business days, although some may take longer.
How much does a $100,000 loan cost?
The total cost of your loan will depend on the APR and loan term you’re offered. As previously mentioned, you could get a lower APR if you have an excellent credit score and established credit history.
Cost example: $100,000 loan with a 5-year term at 5.7% APR
Total amount repaid
Total interest charges
Personal loan monthly payment calculator
Calculate how much you could expect to pay each month
How to use this personal loan monthly payment calculator
Enter $100,000 under Loan amount.
Write the loan term in years (not months) under Loan terms.
Enter the loan’s interest rate if there are no fees under Interest rate. Otherwise, write the annual percentage rate (APR), which includes interest and fees.
Compare home equity loans or lines of credit
Since $100,000 is a large amount to borrow, many lenders will require that you offer up some kind of collateral in order to get approved for a loan of this size. A home equity loan may be a better option than an unsecured personal loan. Although there’s a risk of losing your collateral should you fail to repay your loan, you can typically secure lower rates and better terms.
$100,000 personal loans in Canada are rare and tough to come by. Most lenders offer secured and unsecured personal loans of amounts up to $50,000. Secured loans require some form of collateral such as property or assets to secure the cash you borrow. Unsecured personal loans let you borrow a lump sum of cash without having to put up collateral to secure your loan.
You can compare secured and unsecured personal loans in the tables below to see if any meet your needs.
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What can I do with a $100,000 loan?
When comparing loans of this amount, you likely have your borrowing reason in mind already. Here are some of the most common reasons to borrow a loan of $100,000.
Consolidate large amounts of debt. Have you racked up a lot of high-interest debt that’s taking you longer than you’d like to pay back? A $100,000 loan could help you pay off that debt faster and save money on interest with one simple monthly payment. Learn more about debt consolidation here.
Grow or start a business. A personal loan for business use allows you to use the money for both business and personal expenses and deduct interest on your taxes as applicable, while a business loan can only be used for eligible business expenses.
Home improvements. Whether you’re improving your home because of a necessary repair or simply updating it, you could use a home improvement personal loan to pay for the expenses upfront.
What will I need to apply for a $100,000 loan?
There’s always a level of financial scrutiny that you open yourself up to when applying for financing. The lender will probably look at:
Reason for borrowing. What you’re using the loan for is a good indicator of risk for the lender. You could be considered less of a risk, and therefore have a stronger application, if the lender believes the reason is responsible. For example, a $100,000 personal loan to start a business may be viewed as more risky than a loan to make home renovations.
Credit score. The APR (annual percentage rate) you’re offered is affected by your credit score as well as your credit history in general. A $100,000 loan will likely require an even higher credit score than what the lender lists as its minimum requirement because it’s a large loan.
Income and employment. It’s important to lenders that you’re able to afford all of your debt obligations, including your new loan if approved. You can demonstrate this ability with stable employment history and a high salary. The lender will ask for your annual income and recent employment on the loan application. In addition, the lender could evaluate your repayment ability by looking at your debt-to-income ratio, which is your monthly debt payments divided by your monthly income.
Home owner. For many loans as large as $100,000, you may have to be a homeowner. Although you may not be required to put up your home equity as collateral, you may still have to take out a secured loan for an amount this large. You will likely need to own something of great value, such as a home or property.
Some lenders summarize eligibility in three C’s:
Character (aka creditworthiness). This encompasses your credit score and the information on your credit report, such as payment history and open accounts.
Capital (aka collateral). If you’re considering a secured personal loan, your collateral will be evaluated for value to be sure that the lender can recoup its losses in the event that you default.
Capacity (aka ability to repay). The lender will look at factors such as your current job, your salary and your debt-to-income ratio to determine your ability to repay the new loan and handle all your other financial obligations.
How to get easier approval and lower rates
Have a cosigner. If your credit score is hindering your borrowing opportunities, then having a cosigner with a good credit score can help. A cosigner promises to repay if you can’t. Having 2 people backing the loan lowers your risk, increases your odds of approval and helps you qualify for a lower rate.
Clean up your credit report. In Canada, your credit report comes from 2 main bureaus: TransUnion and Equifax. You’re entitled to 1 free credit report per year, and it doesn’t hurt your score to review your credit history. Check and fix errors, delinquencies, late payments and other issues to make sure lenders see a accurate, optimized report.
Pay down other expenses. If you can, pay down your credit card(s) or other loan products. Ideally, you shouldn’t be using more than 35% of your available credit. Pay down or pay off any debts that are close to the end of term to boost your credit score and/or reduce your debt-to-income ratio.
Have some collateral. Unsecured loans aren’t backed by anything, and that makes them a little riskier to a lender. If you’re able, you put something up for collateral on the personal loan, like a savings account or vehicle — but only do this if you’re sure you can repay the loan or you risk losing the asset.
What should I watch out for?
The fine print. Be sure to read the terms and conditions of the loan agreement. Ask questions if you don’t understand something. You’ll want to know about early repayment fees, penalties, privacy policies and your rights as a borrower.
Additional costs. Consider any fees or charges beyond the interest rate. Upfront fees for things like loan administration costs are usually included in the APR. Keep a look out for extra charges for things like early repayment or late payments — these penalty fees aren’t usually included in the APR but could be costly.
Other borrowing options. If you don’t find a personal loan offer that suits your needs, you have other borrowing options. Compare alternatives such as a home equity loan or line of credit.
What do I need to know about my credit?
Your credit score is a number that represents your creditworthiness based on a variety of factors including: payment history, amounts owed, length of credit history, new credit inquiries, types of credit used, number of accounts and your balance-to-limit ratio.
Your credit score is the first thing most lenders will look at. Especially since you’re applying for a large personal loan, it’s important to have good to excellent credit to increase your chances of approval. A score of 650 or higher will likely be essential.
Your credit report is different from your credit score. Your report is a detailed record of your credit history, including open accounts, credit inquiries and how often you make on-time payments.
Can I get a $100,000 loan with bad credit?
Large personal loans require good to excellent credit. The chances of qualifying for a $100,000 without a strong credit history and high credit score are very low. In addition, you will likely need to be a home owner or own some kind of collateral that is valuable.
If you think your score should be higher than it is, you can check the account listings and payment history in your credit report. There may be errors on your credit report that are hurting your score. Contact the credit bureaus – Equifax and TransUnion – to have any errors fixed.
To get the lowest rate and best possible terms for a $100,000 loan, carefully compare lenders. A slight increase in the APR could really bump up your overall costs. You don’t have to accept an offer until you’ve signed the loan documents. Consult a financial professional or trusted friend if you’re unsure about the terms and conditions.
Aside from online lenders, you can check with banks both online and near you. In some cases, your local credit union could offer loans of up to $100,000 with simple repayment terms.
You can use your personal loan for nearly anything, as long as it's for a legitimate purpose. Most lenders don’t place restrictions on how you can spend your loan money. If you’re unsure whether your provider imposes limits, you can contact the customer service team and clarify.
Some lenders allow for early repayments without any penalty, while others charge early repayment fees. Carefully read through the entirety of your loan's terms to confirm potential fees, as they can vary from lender to lender.
Sometimes, yes. If you’re looking to deduct the interest payments on your taxes for business expenses, you’ll need to calculate the percentage of the interest that went toward them. Remember that a personal loan is in your name — meaning you, and not your business, are fully liable for what happens with it. Using a personal loan for business purposes is not the same as using a business loan for business purposes.
It’s never fun to experience rejection. When your loan application is denied, you typically receive a reason for the denial, and if not, you can reach out and ask the lender. From there, try to repair whatever triggered the denial.
Leanne Escobal is a publisher for Finder. She has over 11 years of experience in financial services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University.
Need to borrow up to $5,000? Compare loan options, even if you have bad credit.
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