Find out how much you can borrow from top online lenders.
There are times in life where paying for something in cash is impossible. You may have spent time researching banks and credit unions in your search for a personal loan, but online lenders are a great resource you may not have considered. Read on to learn about the loan amounts you can borrow, why they vary and what lenders look for in applicants.
Personal loans through Prosper
You could borrow up to $35,000 for a variety of purposes, with rates from 5.99%–35.99%.
- Recommended Credit Score: 640 or higher
- Minimum Loan Amount: $2,000
- Maximum Loan Amount: $35,000
- Loan Term: 3 or 5 years
- Turnaround Time: 1-3 business days
- Simple online application process
- No prepayment penalties
How much can you borrow with a personal loan?
The typical range you will find for a personal loan is $2,000 to $50,000, although there are some lenders with loans of $100,000. How much you can borrow depends on several factors, including your credit score and the purpose of the loan. Lenders tend to favor applicants with credit scores of 680 or higher, but you can still borrow if you have bad credit.
You can borrow as much as your qualify for, but this might not be the smartest move. The easiest way to figure out how much you can afford to borrow is to do some basic calculations. Start with your monthly income and what you spend your money on. Most people have multiple expenses they need to handle. If you have any excess income, this could be used as your loan payment.
At the end of the day, the amount you borrow depends on your needs. Uses can range from renovating your home to consolidating debt or even buying an engagement ring.
How to get the maximum amount of a personal loan
When you need to borrow a large amount, there are no guarantees that you’ll get the funds you’re looking for. However, following some of these tips may help you score the loan amount you need.
- Improve your credit. Raising your credit score can be a slow process, but it can help you get financed down the road for more than just a personal loan.
- Lower your debt-to-income ratio. Paying down your existing debts will lower your expenses and show that you can afford to take out a new loan.
- Wait until you have established employment. Having a secure source of income, especially if it’s with a distinguished employer, can help show lenders you’re able to pay for your loan.
- Look into a secured loan. Offering up something of value as collateral can increase your chances of approval by limiting your liability and decreasing the risk for the lender. Learn more about secured versus unsecured loans.
Compare maximum loan amounts from different lenders
What lenders consider when evaluating your application
Lenders consider several key pieces of information when making a decision on whether or not they’ll fund your loan:
- Your loan purpose. Many lenders will ask what you plan to use the loan for. The purpose may affect the interest rate you’re offered.
- Credit score. While your credit score is not the only deciding factor, it carries a lot of weight. Look at the minimum credit score requirements of a lender before you apply. Learn more about what’s considered a good credit score.
- Debt-to-income ratio. If you already have a significant amount of debt, a lender may see you as a liability and therefore be less likely to lend money to you. Try paying down your existing debts before taking out another loan if you think this might be an issue.
- Your education or career. Some lenders will consider your college education or career as part of your loan approval..
How to compare lenders beyond the maximum loan amount offered
There’s a lot more to a loan than just the maximum amount you can borrow. Keep these factors in mind when comparing your options.
- Interest rate. One of the most important factors when you’re looking at a loan, the interest rate determines how much the loan will cost you from starting the contract to payoff date.
- Fees and other charges. The APR will include any upfront fees, but you should still ask about origination fees, prepayment charges, late fees and other costs that could surprise you.
- Loan terms. Typically the longer the loan term, the smaller your monthly payment. However, a longer loan term also means more interest payments and a larger overall cost for the loan.
- Eligibility criteria. Take a look at the required eligibility for a lender so that you can focus only on lenders you’re likely to qualify for.
- Secured or unsecured. Whether you’ll need to offer something as collateral could affect your decision.
- Loan uses. Some lenders put limits on what you can use a personal loan for, so make sure that any lender you’re considering will let you use the loan the way you need to.
Bottom line
Limits for personal loans vary by lender. When you’re looking to finance your next big step — be it a big purchase, a home renovation or something else entirely — compare more than just the amount you’re offered.
It’s important to compare your loan options.
