How to get a $30,000 personal loan with any credit score

While larger loans can be harder to find, personal loan lenders offering $30,000 loans are much more common. If you have less-than-perfect credit, however, your choices may be more limited. Loans this size typically come with stricter requirements to mitigate the lender’s risk.

Still, it’s possible to get a personal loan with bad credit, though it will likely come with higher-than-average interest rates and fees. Comparing personal loan rates from multiple lenders is key to finding the best terms available for your situation, especially with such a large sum involved.

$30,000 personal loan lenders

Different lenders may have better rates or terms, or they may cater better to certain credit scores. For instance, banks tend to have stricter requirements than both credit unions and online lenders.

Online lenders tend to be more lenient, but if your credit needs work, your loan may come with higher rates and fees. That said, those with excellent credit could receive a low rate.

Different lenders may have better rates or terms or they may cater better to certain credit scores. For instance, banks tend to have stricter requirements than both credit unions and online lenders. Online lenders like Upstart tend to be more lenient, but if your credit needs work, your loan may come with higher rates and fees.

Here are some options to consider when shopping for a $30,000 personal loan.

Requirements to receive a personal loan

Though many lenders offer loans larger than $30,000, borrowing this kind of money isn’t a small feat. Lenders will likely have requirements like these.

• A good credit history: Lenders will check your credit score and payment history by doing a hard credit inquiry. This allows them to check your history from the past seven years for on-time payments. For a $30,000 loan, the best personal loan lenders have varying requirements. For example, LightStream requires a 695 minimum credit score, while Upstart does not have a credit requirement at all.
• A high enough income: Before applying, consider how much you need to make to get a $30,000 loan. While evaluating your loan application, your lender will look at your income to determine whether you can afford the payments. Each lender has different income requirements, so talk to different lenders to find one that will work with your income level.
• Debt-to-income ratio: Another factor lenders use to determine your ability to repay the loan is debt-to-income (DTI) ratio. This is a number they calculate by adding together all your debt and dividing it by your income. Though some lenders may work with higher DTI ratios, it’s best to have a lower DTI for larger loans.
• The documents to prove it all: When giving the lender all your information, they will want to have documentation for confirmation. Personal loan documents typically include proof of identity, employer and income verification documents like a pay stub. You will also want to provide proof of your address.
• Origination fee: Some lenders charge an origination fee to cover the costs of processing your loan application. However, sometimes they waive the fee if you have a good credit score.

Steps to get a $30,000 loan

Getting a $30,000 loan is similar to applying for most other types of loans, though the amount may be larger.

1. Check your credit: This will help narrow down the list of lenders to those that can offer loans for your situation.
2. Prequalify with at least three lenders: This will allow you to compare realistic offers side-by-side without impacting your credit.
3. Run the numbers: Check the different offers against your monthly budget to ensure you choose a loan you can afford.
4. Select your offer and wait for a disbursement: When selecting an offer, look closely at perks like zero fees and discounts that can make your loan more affordable.

Costs of a $30,000 personal loan in the long term

When you take out any loan, you agree to pay interest. Over the life of your loan, you will pay the amount you borrowed, plus interest that accrues. The interest rate on your loan and how quickly you pay down the loan’s principal amount will determine your loan’s total cost over time.

For example, let’s say you take out a $30,000 loan with an annual percentage rate of 8.99 percent and a term length of three years. Your monthly payment will be $954, and you will pay about $4,339 in interest. That same loan with a five-year repayment term will cost you $7,356 in interest. However, your budget will be less stretched with a lower monthly payment of $623.

How to determine if you need a $30,000 loan

Personal loans can be used for virtually anything, and there are several reasons you might want to apply for one. Some of the most common reasons for personal loans include:

• Wedding
• Education
• Home renovations or projects
• Consolidating debt
• Vacation
• Financing a vehicle

However, it’s important that you only take out the amount of debt you can handle. While people may take out personal loans for all of the above and more, it’s not always the best idea.

Debt that you use to help you reach a life goal and build wealth or opportunity in future may be worth it — like going to college or buying a house. On the other hand, going into debt to make a luxury purchase or go on vacation may not be wise. That is especially true if you are unsure if you can make the payments.

You want to ensure a loan of this size is a good idea. Some of the best uses for a $30,000 personal loan might be consolidating multiple debts into one loan with a lower interest rate. Also, investing in home renovations with a loan like this may be a good idea because it will likely raise the value of your home and increase your equity, making you money in the long run.

No matter what you decide, know what you are getting into. Use a loan calculator to preview your monthly payment and ensure it fits your budget. Then, manage your finances so you can pay off your loan within the specified repayment period.

Bottom line

Taking out a $30,000 personal loan can be helpful if you use it wisely. Remember that loans for projects like home renovations, which could add to the value of your home, are considered good debt. Personal loans for expenses like vacations or weddings are riskier for your finances.

If you plan to take out a loan of this size, make sure you understand the cost. Shop around and compare the best personal loan lenders to find the best rates. Banks and online lenders offer a range of options to help provide a $30,000 loan, greatly simplifying the process and helping you get the funds that you need.