PM Images/ Getty Images; Illustration by Austin Courregé/Bankrate
Key takeaways
- Loans for this amount are offered by banks, credit unions and online lenders. The latter often features rapid funding times.
- An excellent credit score will typically qualify you for the lowest rate on a loan of this size.
- Most importantly, evaluate the necessity and costs of a $50,000 personal loan to determine if it makes sense for your financial situation.
Larger loans of $50,000 are available through banks, credit unions and online lenders. But before you apply, evaluate if you need a loan for this amount or if a smaller loan will do.
You should also familiarize yourself with what lenders look for in applicants. Get at least three loan quotes and search for the lowest personal loan rates. This will help you gauge if the benefits of securing a $50,000 personal loan outweigh the cost of borrowing.
Where to get a $50,000 personal loan
You can get a personal loan from a traditional bank or credit union. Online lenders are also an option, and many feature a simple application process and fast funding times.
| APR range | Loan amount range | Minimum credit score requirement | |
| LightStream | 6.94%-25.29%* (with AutoPay) | $5,000–$100,000 | 695 |
| SoFi | 8.99%-29.49% (with autopay) | $5,000–$100,000 | No requirement |
| Upgrade | 9.99%-35.99% (with autopay) | $1,000–$50,000 | 580 |
| Best Egg | 6.99%-35.99% | $2,000–$50,000 | 600 |
Bankrate’s view
If you have good or excellent credit, LightStream is worth considering. It offers some of the lowest interest rates on personal loans in the industry, and borrowers can select a loan term and funding date that works best for them. Even better, there are no origination fees, and you won’t be charged a prepayment penalty if you decide to pay the loan off early. LightStream will also beat any competitor’s rate for a comparable personal loan product by 0.1 percent through its Rate Beat program.
Pros
- Low rates compared to competitors
- Rate Beat program
- Funding same business day
Cons
- High minimum credit score requirement
- Prequalification not offered
- Several years of credit history required
Bankrate’s view
SoFi offers prequalification in just 60 seconds with no impact on your credit score. You may receive your loan on the same business day if you’re approved before 7 p.m. ET. Along with its simplified application process, SoFi also extends other perks to its customers, including free access to career education resources, rewards and financial planning. You can get a small interest rate discount for opting into autopay.
Pros
- No origination fees
- Quick prequalification
- Multiple rate discounts available
Cons
- Relatively high starting APR
- Requires good to excellent credit
- Cosigners not accepted
Bankrate’s view
A $50,000 personal loan from Upgrade could be ideal if you have fair credit. You can choose a loan term between two and seven years and a monthly payment that works for your budget. However, you’ll pay an origination fee between 1.85 percent and 9.99 percent when you borrow a loan.
Pros
- Accepts joint loan applications
- Option to prequalify
- Rate discounts available
Cons
- Origination fees
- Late fees
- High maximum APR
Best Egg
If you have a credit score over 700 and income of at least $100,000, you can get Best Egg’s most competitive rates. Loans are also available to borrowers with lower credit scores — just expect higher rates. You could get approved and funded on the same day, and there are no prepayment penalties if you choose to pay the loan off ahead of schedule. However, Best Egg charges an origination fee between 0.99 percent and 9.99 percent.
Pros
- Rate check in minutes
- Approvals based on more than just credit score
- Low rates for good credit
Cons
- No rate discounts available
- Origination fees
- Returned payment fees
How to get a $50,000 loan
It depends on the lender, but most evaluate your creditworthiness and debt-to-income ratio (DTI). Lenders want to know that you’ve responsibly handled debt products in the past. Your credit rating sheds light on this question, revealing how you manage debt obligations. Your debt-to-income ratio is an indication of whether you can afford to make timely monthly payments on a new loan.
When you’re ready to apply, follow these steps to give yourself the best chance at getting approved for a $50,000 loan:
- Check your credit. A fair or bad credit rating doesn’t necessarily mean you can’t get a $50,000 personal loan. But you can expect to pay far more in interest over the loan term. The lender may also require you to have a cosigner with exceptional credit health to approve you for a loan.
- Understand lending guidelines. Beyond credit scores, most lenders will also evaluate your debt-to-income ratio when deciding whether you’re a good fit for a loan. It’s the percentage of your gross monthly income used to cover minimum monthly debt payments. If this number is on the higher end, lenders may be hesitant to approve you or charge far more in interest since the risk of default is higher.
- Get prequalified. Explore several lenders and get prequalified with at least three. Doing so lets you compare loan offers without negatively impacting your credit score.
- Gather documentation. In most instances, you’ll need to provide the lender with identifying information and documents when you apply. This includes proof of identity, address and income documentation along with your employer’s contact information.
- Formally apply for a loan. Complete a loan application with your chosen lender online or in-person (if applicable). Be sure to review the contents for accuracy and submit any required documentation properly to avoid hiccups in the lending process.
- Receive a lending decision. If approved, review the loan agreement and sign the contract. Most lenders disburse funds electronically, but the funding timeline varies. You could receive the loan proceeds as soon as one to a few business days.
Common personal loan requirements
Though specific requirements vary slightly from lender to lender, applicants are typically asked to provide some, or all, of the following when applying for a personal loan:
- Proof of identity, such as your driver’s license, state-issued ID, passport, certificate of citizenship, birth certificate, Social Security card or military ID.
- Proof of address like a mortgage statement or lease agreement, proof of insurance (home, renters or auto), utility bill, voter registration card, property tax receipt or account statement.
- Your employer’s contact information, including the employer’s name, supervisor’s phone number and email address.
- Proof of income, including paystubs, tax returns, W-2s and 1099s or bank statements.
Costs of a $50,000 personal loan in the long term
To minimize costs, stick with the shortest repayment term — and highest monthly payment — you can reasonably afford. While some borrowers choose an extended loan term to get more affordable monthly payments, there are a few drawbacks. You’ll pay more in interest as the lender will have more time to collect from you. Plus, personal loans with longer terms tend to have higher interest rates.
Using a personal loan calculator, you can determine what you can expect in terms of monthly payments and borrowing costs based on the loan term you select. For example, this is how much a $50,000 personal loan would cost with an average interest rate of 12.31 percent over three terms:
| Loan Term | Monthly Payment | Total Interest Paid |
| 3 years | $1,668 | $10,052.62 |
| 5 years | $1,120 | $17,204.25 |
| 7 years | $891 | $24,839.57 |
A longer term will save you money each month, but you’ll pay thousands more in interest when you choose an extended loan term.
Is taking out a $50,000 personal loan the right choice?
How you plan to use your loan will determine if you truly need $50,000. Will you cover a big-ticket expense, financial emergency, renovate your home or consolidate high-interest debt?
Grab a notebook and calculate the exact amount you need. It can be tempting to ask a lender for more than you need, but you risk borrowing more than you can afford to repay. If you can cut down on how much you borrow, you take on less risk in general.
However, some circumstances warrant a larger loan amount than you actually need. Home improvement projects and special events, like weddings, often run a bit over budget. In these cases, it can sometimes be sensible to overestimate your expenses and request a larger loan.
Alternatives to a $50,000 loan
If you’re not completely sold on the idea of taking out a $50,000 loan, consider these alternatives:
- Credit cards. The APR on credit cards is generally hefty and few are approved for credit limits as high as $50,000. But if you don’t need all the money at once and can repay promptly to avoid hefty interest charges, a credit card could be an option.
- Home equity loans. You can borrow against the equity in your home with a home equity loan. It comes with a fixed interest rate, often lower than you’ll get with a credit card, and a set monthly payment. Because your home secures a home equity loan, you could lose your residence if you fail to pay.
- Home equity lines of credit (HELOCs). Like a credit card, a HELOC gives you a preset spending limit to use on an as-needed basis. The line replenishes as you repay borrowed funds, and you can use it until the draw period ends. Because your equity in your home secures a HELOC, it typically has a higher spending limit and lower rate than a credit card.
- Personal lines of credit. A personal line of credit can be a good option for covering a significant expense. This type of funding functions similar to a credit card, providing ongoing access to funds during the draw period. You only have to pay back what you borrow.
Bottom line
A $50,000 personal loan can help you meet a large financial goal, but be sure to evaluate lenders and consider the cost of borrowing before you apply. Most importantly, only borrow what you need to avoid unnecessary debt and stretching your budget too thin.
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