How To Find A $35,000 Personal Loan

To get a $35,000 personal loan, you’ll need to pick a lender that offers high loan amounts and ensure that you earn enough to afford the payment. Depending on your credit score, a $35,000 loan could come with an APR of up to 35.99 percent, making the payment too expensive even if you make a good income.

It’s also important to consider the loan terms each lender offers when you borrow this much. A longer repayment term will offer a lower monthly payment but higher overall cost of borrowing — it’s smart to choose the shortest term you can reasonably afford. Before committing to a loan, compare at least three offers from banks, credit unions and online lenders.

Lenders that offer $35,000 personal loans

You can get a personal loan through online lenders, banks and credit unions. Always examine the basics, like the loan amount range, repayment term, APR and eligibility requirements.

Check lender reviews to understand a lender’s track record for customer service and the types of loans in which they specialize. For example, some lenders place a heavy focus on debt consolidation loans, while others focus on loans for borrowers with excellent credit.

Bankrate’s view

Achieve offers low starting rates and is one of Bankrate’s picks for the best debt consolidation loan. This lender allows co-borrowers, which may come in handy if you’re having trouble qualifying on your own. In fact, Achieve may even give you a rate discount for applying with a co-borrower. You will need a different lender if you live in a state Achieve doesn’t serve.

Pros

• Multiple rate discount opportunities
• Low maximum APR
• Co-borrowers allowed

Cons

• High minimum loan amount
• Not available in all states
• Origination fee of up to 8.99 percent

Bankrate’s take

Upgrade offers fast approvals and funds loans as soon as one day after approval for borrowers with scores as low as 580. It’s also one of the few fair credit lenders to offer an 84-month term, which could help keep your $35,000 loan payment more affordable than the standard 60-month options offered by other fair credit lenders. However, Upgrade’s 35.99 percent rate cap and origination fees of up to 9.99 percent make it one of the more expensive options for a higher loan amount.

Pros

• Accepts bad credit
• Debt consolidation rate discount
• Co-borrowers allowed

Cons

• High maximum APR
• Origination fee of up to 9.99 percent

Bankrate’s take

Best Egg may be worth a look if you want to consider secured loan options. To improve your eligibility or access a lower rate, you can back your Best Egg loan with collateral, including your car or home fixtures. The interest rates on a secured loan could be well below what you’d pay for a bad credit unsecured loan. The big drawback to these secured loan programs is you could lose your car or tie up your home’s equity if you can’t repay the debt.

Pros

• Low starting APR
• Secured loans available
• Direct creditor repayment available

Cons

• High maximum APR
• Not available in all states
• Origination fee of up to 9.99 percent

Bankrate’s view

SoFi offers repayment terms as long as 84 months, making it a solid choice for higher loan amounts. Borrowers can also access multiple members-only perks, including free financial planning, discounts on subsequent loans and travel rewards. SoFi doesn’t set a minimum credit score requirement, but if you don’t qualify on your own, you can apply with a co-borrower.

Pros

• Low maximum APR
• Co-borrowers allowed
• Unique member perks

Cons

• High minimum loan amount
• Not available in all states
• Optional origination fee of up to 7 percent

How to get a $35,000 personal loan

1. Research lenders. Not all lenders are created equally. Familiarize yourself with a variety of lenders, including banks, credit unions and online lenders. Review each lender’s APRs, repayment terms, fees and eligibility requirements.
2. Run the numbers. Assess your monthly spending plan to determine whether you can afford a $35,000 personal loan payment. Use a personal loan calculator to crunch the numbers, and check your credit score while you’re at it to gauge whether it’s high enough to receive a competitive rate.
3. Shop around and compare loan offers. Gather quotes from at least three lenders. Check with your local bank or credit union to see if it offers any specials or relationship discounts, and explore Bankrate’s lender picks to find some of the best personal loan rates on the market.
4. Formally apply. Submit a full application with your chosen lender. The lender will perform a hard credit check (which can temporarily drop your credit score) and conduct a thorough review of your loan application to issue a lending decision.
5. Start repaying your loan. If approved, you could receive the loan proceeds within one to three business days, though some lenders can fund your loan the same day. Be sure to make timely payments each month to keep your finances on track and preserve your credit score.

Common personal loan requirements

There may be extra steps required to qualify for a loan amount as high as $35,000. You’ll need more income and higher credit scores to snag the most favorable loan terms. Here’s what lenders will likely look at when approving you for a $35k loan.

• Credit score: Your credit score is the most important factor a lender uses to determine your interest rate. The average personal loan interest rate for low credit could be three times higher than what’s offered to an excellent credit borrower.
• Debt-to-income ratio: Because personal loans are unsecured, lenders scrutinize your debt-to-income ratio (or DTI ratio for short) more closely. It’s calculated by dividing your monthly debt payments by your pre-tax income and indicates how much room you have in your budget for a loan payment. Lenders prefer a ratio under 36 percent, though up to 50 percent may be acceptable.
• Income: Lenders also need to verify that you earn a consistent income high enough to cover a potential loan payment. Salaried or full-time hourly pay is the easiest to get approved. Self-employed, seasonal or low-income workers may not be approved, especially for a $35,000 loan.
• Financial documents: Be prepared to provide two forms of identification along with your employer’s contact information, your bank information, proof of income and proof of residency.

Long-term costs of a $35,000 loan

People usually focus the most on monthly payments when borrowing money. However, fees and accumulated interest costs also impact the total cost of a personal loan. A shorter term can save you thousands of dollars in interest over the life of a loan, if you can afford the payment. Use a personal loan calculator to find the best match for your financial situation.

Keep an eye on origination fees, as well. Some lenders charge up to 12 percent, which is typically deducted from the funds you receive, though you still pay interest on the total requested loan amount.

Running the numbers makes your options easier to compare. Below are the costs associated with a $35,000 loan at a 12 percent APR at various repayment terms.

As you can see, the lower monthly payment for a longer term comes with higher lifetime loan costs.

How to determine whether you need a $35,000 personal loan

A personal loan has distinct advantages over other financing options like home equity loans or HELOCs. In general, you’ll benefit from a $35,000 personal loan if:

• You need funds quickly. Most personal loan companies can fund a loan within one business day of approval. The approval process requires less documentation and time than the mortgage financing process.
• You can afford the payment. Your payment is fixed for the loan’s term, which means you don’t have any minimum payment options like you would with a home equity line of credit. If you need a longer term and have the equity, a cash-out refinance may also be worth considering if you can snag a lower mortgage rate.
• You have a stable income. Because most personal loans are unsecured, lenders require a stable, verifiable income source.
• You have excellent credit. Most single-digit rates go to excellent-credit borrowers. If you’re a homeowner with bad credit, an FHA cash-out refinance may be a better bet.
• You don’t have enough equity for mortgage options. Most home equity options require you to have significantly more than 20 percent equity to get any extra cash. However, personal loans aren’t tied to the value of any asset you own.
• You prefer not to tie up your home’s equity. If you plan to sell your home or prefer not to risk foreclosure due to a loan default, a personal loan can be better because it doesn’t add a lien to your home.

Alternatives to borrowing a $35,000 personal loan

• Home equity loan: You can borrow against the equity in your home, potentially at a lower rate than you’d get with a personal loan. That said, defaulting on the loan agreement could lead to foreclosure.
• Personal line of credit: If you need to access cash over time or for an ongoing project, a personal line of credit could be a better fit. You’re only charged interest on the funds you withdraw, which could mean lower borrowing costs. However, the interest rate is variable and fluctuates with the market, making it difficult to predict future costs.
• Personal savings: If you don’t need the funds immediately, consider building up your personal savings. You can skip the application process and paying interest that comes with taking out a loan.

Bottom line

To qualify for a $35,000 personal loan, borrowers must have a good credit score and steady income to meet their payment obligations. However, not all lenders offer such large loans, so it’s crucial to do your homework and shop with multiple lenders. Before borrowing, be sure you can afford to repay the debt without stretching your budget too far.