Personal Loan Borrowing Limits
Personal loans can be a great resource for people in need of some quick cash, but depending on how much money you need, this option may or may not work for you.
To help you find the right financing option for you, let’s take a quick look at how much you can expect to borrow in a personal loan.
How Much Can I Borrow in a Personal Loan?
Loan limits can vary by quite a bit depending on which lender you choose.
Some lenders, like LightStream and SoFi, for example, have borrowing limits as high as $100,000. While other lenders, like Best Egg, offer amounts up to $35,000.
Generally speaking, you can expect to see lenders cap their borrowing limits at somewhere between $10,000 and $50,000 with some offering even more.
Since these amounts can significantly vary, it’s important to know exactly how much money you need. Not only will this help you find the right lender, but it will also help you avoid overborrowing — and you should never borrow more than you actually need.
What Can You Use it For?
One of the best things about personal loans is that they can be used for nearly anything, including:
● And more
Thanks to the flexibility it offers, this method of financing is great for borrowers that need money for something that may not be covered by another type of financing.
How to Apply
Applying for a personal loan is a fairly easy and straightforward process. Just follow these simple steps to get started:
- Know How Much You Need: As mentioned, it’s important to know how much money you need before you begin shopping so that you can find the right lender for your needs.
- Compare Lenders: Before choosing a lender, you should be sure to compare rates, terms, and eligibility requirements from at least three to five lenders.
- Meet the Requirements: Every lender has its own eligibility requirements; however, as a general rule of thumb, you should aim for a credit score of at least 640 and a debt-to-income ratio of 35% or under.
- Apply: Once you choose a lender, it’s time to apply. Make sure to have the necessary forms, such as your identification and bank statements, at the ready to make this process as easy as possible.
Once your application is approved, your funds will be disbursed and you can begin repaying your loan.
Based on a $10,000 loan, excellent credit score with a 14% interest rate on a 1 year term