How to get a $100,000 personal loan: 5 tips worth knowing

To get a $100,000 personal loan at the best rates and terms, you’ll need excellent credit, a high income, and the right lender. Not all personal loan companies offer six-figure loan amounts. Those that do typically only lend large amounts to borrowers with stellar financial profiles.

A $100k personal loan can be a great alternative to a home equity loan. Unlike a home equity loan, it doesn’t add a lien to your home. However, shorter repayment terms and a fixed payment can strain your budget if you don’t weigh all the advantages and drawbacks of taking out a large personal loan.

5 things to consider when getting a $100,000 personal loan

Before applying for $100k loans, understand all the factors involved. You may need to do extra research to find a lender with which you’ll qualify. You should also crunch the numbers to ensure the payment matches your financial goals.

1. Find lenders that offer $100k personal loans

Only a handful of lenders offer $100k personal loans. Annual percentage rates (APRs) and approval requirements can vary significantly among the ones that do.  Your local bank or credit union may be a good place to start. Depending on your banking relationship, they may offer discounted rates or no fees.

Bankrate’s experts reviewed the lenders below to give you a head start on your $100,000 personal loan shopping. To learn more about any of the lenders, click on the lender review links.

Where to get a $100k loan

LightStream

LightStream offers some of the lowest personal loan rates of the reviewed lenders. The 6.94 percent start rate competes with current home equity loan rates — if you qualify for it. You can choose up to seven years to repay the loan and may get a rate discount if you set your payment up on autopay.

LightStream doesn’t charge fees and if you’re qualified, you may receive your funds the same day you apply.

One drawback is the requirement for a high minimum credit score. At 695, it’s the highest minimum of the $100k lenders in our table. However, other highlighted lenders may have higher credit score minimums for their $100k loans than what’s listed.

SoFi

With SoFi, you may add a co-borrower when you apply. Combining your income with that of a co-borrower can lower your debt-to-income ratio and make it easier to qualify for a $100,000 loan. This feature makes SoFi a solid choice to get a six-digit loan amount.

Phone support is even available on the weekends if you need to ask questions before the weekdays begin.

You may pay a higher APR at SoFi compared to LightStream since their lowest APR is 8.99 percent. And your APR may be higher still if you opt out of paying an origination fee.

Alliant

If you can’t qualify for a $100k loan at LightStream or SoFi, you may want to check out Alliant’s personal loan options. You’ll need to become an Alliant credit union member to apply. If you are approved, your loan funds could be available the same day you apply.

Alliant offers a 12-month repayment term option if you can afford the payment. Drawbacks include a much higher starting APR than other high loan amount lenders and a maximum term of five years.

Wells Fargo

Wells Fargo also offers personal loans up to $100,000 at competitive APRs and flexible terms. You can choose a term between 12 and 84 months — a wider range than most lenders offer.

As with other lenders on this list, Wells Fargo does not charge origination fees. That’s a big perk, because with a loan this size, an origination fee can seriously cut into the amount you receive.

You must be a current Wells Fargo customer to qualify, and the qualifying requirements aren’t clear on their website. Your application may be approved the day you apply.

USAA

USAA is known for providing financial products to military families. It provides a $100k personal loan product with the same wide range of terms as Wells Fargo.

However, the lowest APR is higher than most lenders Bankrate reviewed. That could lead to a larger payment than you’d get with other lenders.

USAA offers 24/7 customer support to accommodate the needs of military personnel who may be stationed worldwide. But you won’t be eligible for a USAA personal loan unless you meet their membership requirements.

2. Learn how to qualify for a $100,000 personal loan

Because personal loans are typically unsecured, lenders scrutinize your financial health more closely. That means you’ll need a better credit score, higher and more stable income and less total debt than you’d need if you borrow less than $100k.

Good to excellent credit

The minimum FICO credit score varies but is at least 680 for all lenders Bankrate reviewed. An excellent score of 800 paired with high income will likely give you the fastest path to approval and access to lenders’ lowest rates.

The table below shows you how your credit score affects the monthly payment on a $100k loan with a seven-year term based on current average personal loan interest rate ranges.

Note that it is very unlikely you will be approved for an unsecured $100,000 loan with a score below the “good” range, which for FICO is 670 to 739.

High income

Lenders may set specific income requirements for you to qualify. You’ll need to document a regular stable income, preferably from a salary or full-time hourly employment.

Reasonable DTI

Your debt-to-income ratio is critical to a $100k loan approval. It’s measured by dividing your income by all of your monthly debt payments, including the new loan you apply for. A high DTI tells lenders that your budget is already tight. If it’s too high, your application may be denied or you may be offered a lower amount. Most lenders prefer a DTI under 36 percent.

Proof of identity

You’ll need to provide identifying documents, such as a driver’s license, state-issued or military ID, passport, birth certificate or Social Security card.

Proof of address

You can document this with a utility bill, insurance statement, mortgage statement, lease agreement, bank statement or voter registration card.

3. Calculate the costs of a $100,000 loan

When you borrow $100,000, it makes sense to focus on how the monthly payment fits your budget. However, if you have the resources to repay the loan sooner, you can save thousands of dollars in interest. Although the lenders on the list above don’t require origination fees, check the fine print on your offer to make sure.

Use a personal loan calculator to estimate your borrowing costs. Experiment with different terms to see how the payment and total interest figures change. We’ve done the math below on three-, five- and seven-year terms for a $100,000 loan, assuming you qualify for a 7.50 percent rate.

4. Compare $100k loan offers at different lenders

Lenders know they can make significant money on a $100,000 loan. So, they may be willing to compete for your business. Prequalify with several lenders to see which has the lowest APR, including banks, credit unions and online lenders.

Ask your local bank about any incentives they offer if you already have checking or savings accounts.

Ask online lenders about any price match guarantees they might offer. For example, LightStream’s Rate Beat Program will reduce your rate by .10 percentage points if you prove a competitor approved them for a better rate before your loan funds.

5. Sign your papers and receive your funds

Once you finalize your paperwork, your loan funds are usually direct deposited into your account. Personal loans typically fund faster than secured large loan products.

Many personal loan companies offer same-day or next-day funding. However, before you receive your money, you’ll typically need authorization from your lender to deposit funds and withdraw your payments.

Alternatives to $100,000 personal loans

Personal loans are the best high-dollar unsecured lending option. However, if you own a home and have built enough equity, you may be able to borrow $100,000 at a lower rate. On the downside, if you default, you could lose your home.

Home equity loan

A home equity loan works like a personal loan in many ways. All your funds are sent to you at once, and your rate and payments are fixed for the life of the loan. Home equity loans are a better fit if you want to spread your payment out for terms as long as 30 years. A bonus: You’re eligible for a tax break if you use the funds for home improvements.

Just be prepared for much more qualifying paperwork and an appraisal on your home. You’ll need substantial equity to borrow $100,000. Lenders typically won’t let you borrow more than 85 percent of your home’s value. You’ll also need a credit score over 700 to get the best home equity loan rates.

Home equity loan closing costs usually run about 2 to 5 percent of your loan amount, reducing how much cash you take home.

Home equity line of credit (HELOCs)

A home equity line of credit works like a credit card secured by your home. During the draw period, you can typically use and re-use the funds as often as you wish. Payments are based on how much you use, though you may be able to make interest-only payments during the draw period. That could make payments much cheaper than what you’d have on a personal loan.

Like a home equity loan, the interest is tax-deductible if you use the funds to renovate your home.

Although closing costs are often cheaper, HELOC lenders often charge ongoing fees and even close-out fees if you decide you don’t want or need the account anymore. Another drawback: Rates are variable, which means your rate could spike if the Fed hikes rates.

Cash-out refinance

If your credit scores are too low for personal loans or home equity financing, you may want to consider a cash-out refinance. With this type of mortgage, you’ll replace your current mortgage with one that’s $100,000 larger than you owe. You’ll need significant equity since most cash-out refinance programs limit you to borrowing 80 percent of your home’s value.

You’ll also pay closing costs of between 2 and 5 percent of your loan amount, which could be a hefty bill since you’re borrowing more than you owe. The approval process is much more intensive, with a much deeper dive into how much your home is worth. Completing a cash-out refinance can take up to 45 days or longer.