How to find a $80,000 personal loan

An $80,000 personal loan is a large responsibility. Before moving forward, assess your needs, know how much your monthly payment will be and understand how you will pay it. It’s equally important to shop around with multiple lenders to ensure you get the best deal on a personal loan.

How to get an $80,000 personal loan

Taking out an $80,000 loan requires more forethought and care than a smaller loan. First and foremost, you must consider your income and how much you can afford. You’ll also need to know your credit profile in detail. The stronger your credit, the more likely you are to qualify and the more competitive rates you will receive.

When comparing personal loan lenders, also pay close attention to loan amount restrictions, as you will be borrowing on the higher end. Most lenders do not offer unsecured personal loans for more than $50,000.

Once you crunch the numbers and compare lenders, you can apply for funding. You should prepare for the application process by checking your credit score and gathering all the documents to verify this information.

How to get an $80,000 personal loan with bad credit

If your credit score is in a challenging spot, taking out a personal loan at an amount this steep is a very big risk. It will put you in a vulnerable position and could result in future financial problems.

There are bad credit personal loan lenders that typically cater to those with a low credit score. However, most do not offer loans of $80,000 — in fact all of the Bankrate reviewed bad credit lenders have maximum amount limits of $50,000 or less.

A way to navigate this challenge is to look for a lender that allows you to add a co-signer or co-borrower. If you apply with a trusted family or friend with a strong credit history, you may be able to qualify. Regardless of the route you choose, the other person is equally responsible for the monthly payment, so it’s critical that you know you can afford it.

Where can you get an $80,000 personal loan?

Personal loans of any amount are available from banks, credit unions and online lenders. Each type of lender comes with benefits and drawbacks worth considering. With a loan of this size, it is especially important to compare a number of lenders to ensure you qualify and can receive a competitive APR.

Banks

Banks offer an experience well suited for a borrower who prefers in-person support. Those who already have an existing relationship with a bank should research its personal loan offerings — there may be discounts available.

Wells Fargo

Bankrate’s view

Wells Fargo features personal loan options with flexible repayment terms. This is especially true for those who borrow between $5,000 and $100,000, as the repayment period extends to 84 months. Interest rate discounts of 0.25 percent or 0.5 percent are also available to current account holders.

Pros

• Long repayment terms.
• Fast funding.
• Rate discounts for account holders.

Cons

• Only available to long-standing customers.
• Minimal locations.

Credit unions

Credit unions serve as nonprofit financial institutions and typically offer competitive rates for borrowers. Credit unions have an average rate almost one percentage point below bank loans, according to the National Credit Union Administration. While membership tends to be fairly easy to secure, be sure to check if you qualify ahead of applying.

Alliant

Bankrate’s view

Alliant is an online-only credit union that serves members across the country. It stands out against other lenders for its minimal fees and fast funding. Loan terms are available for up to 60 months and amounts go up to $100,000.

Pros

• Fast funding.
• Wide range of loan amounts.
• Minimal fees.

Cons

• Higher than average minimum APR.
• No prequalification.

Online lenders

Online lenders may be a good fit for you if fast funding is a top priority. Many times, these institutions have funding available within a business day of approval. Remember that online lenders do not have branches, so you will not receive in-person support.

LightStream

Bankrate’s view

LightStream offers funding of up to $100,000, a good fit for an $80,000 loan. Plus, the Rate Beat Program allows you to get an interest rate that’s 0.1 percent lower than any interest rate you are approved for on a comparable loan product with another lender. The application process only takes a few minutes, and if approved you may get funds in your account as soon as the same day.

Pros

• No fees.
• Fast funding.
• Wide range of loan amounts.

Cons

• No prequalification.
• Long credit history required.

Costs of an $80,000 personal loan in the long term

An $80,000 loan is going to cost a steep amount. You’ll pay interest on the amount you borrow and any applicable fees the lender charges.

Some lenders assess origination fees — sometimes up to 12 percent of the loan amount — prepayment penalties if you choose to pay the loan off early, late payment fees and insufficient funds fees for returned payments. All of these can add to the total cost of the $80,000 loan.

Use a loan calculator to understand how different interest rates and loan terms affect the cost of the loan. You’ll want to have a firm understanding of the loan and any fees that come with it ahead of signing the agreement.

Alternatives to $80,000 personal loans

If you are unable to find a personal loan that fits your needs, it is best to find alternatives rather than signing off on one that could lead to future financial troubles. Consider the following alternatives to an $80,000 personal loan:

• Home equity loan or HELOC: The primary benefit of this borrowing option is the ability to get funding at longer terms than personal loans allow. But it doesn’t come without risk — your home is on the line and you must have significant equity in your home in order to qualify. A home equity loan is disbursed in a lump sum while a line of credit allows you to draw multiple times during a set period.
• Cash-out mortgage refinance: A cash-out refinance also requires significant equity in your home. You replace your mortgage with one for more than you owe and get the difference in cash. It is a potentially costly option, and isn’t recommended if you can’t get the same rate or lower than your current mortgage.
• Peer-to-peer lending: Unlike a personal loan where you borrow from a financial insulation, peer-to-peer lending operates as a group of investors that lends money. This can increase your approval odds but also could result in a higher interest rate and fees.

How to determine if you need an $80,000 loan

There are many reasons why taking out a personal loan might make sense. Personal loans can help you consolidate debt at a low rate and save a bundle in interest or cover large expenses like home renovations, vacations or weddings.

However, taking out an $80,000 loan is costly. It’s vital to understand how much of a loan you need and why you need it before applying. You may find that a lower loan amount covers your needs and is more suitable for your financial situation. Plus, you’ll pay less in interest and fees if you opt for a lower amount.