How to get a $35,000 personal loan: 5 tips worth knowing

To get a $35,000 personal loan, you’ll need to pick a lender that offers high loan amounts and check you earn enough to afford the payment. Depending on your credit score, a $35k loan could come with an APR as high as 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. The standard five-year repayment period could spike your payment beyond your budget. Fortunately, you can find longer terms at many traditional banks, credit unions or online personal loan lenders if you shop around.

5 things to consider when getting a $35,000 personal loan

Borrowing $35,000 is a big financial commitment.  Although a personal loan can give you fast access to funds you need for a major home improvement or purchase, it’s worth considering the following to get the best financing possible.

1. Find personal loan lenders that offer $35,000 loans

Not every personal loan lender offers a $35,000 loan amount. Those that do offer a variety of APRs, repayment terms and fees you need to know to get the best terms for your loan.

Pay extra attention to the repayment term on a loan this size. Only a handful of personal loan lenders offer terms longer than five years.

You may not qualify for a longer term unless you have a high credit score or meet certain income requirements. One drawback to longer terms is they often come with higher APRs, raising your costs over time.

Where to get a $35k loan

Personal loans for $35,000 are available through several online lenders, banks and credit unions. Always look at the basics, like the loan amount range and APR. Check lender reviews to see what they’re best for.

For example, some lenders specialize in debt consolidation loans, while others focus on loans for borrowers with excellent credit. Keep an eye on minimum credit scores to ensure you meet the lender’s standards. Some are higher than others.

The table below features Bankrate-reviewed lenders that offer a $35,000 loan.

LightStream

LightStream is a solid choice for a $35,000 loan because it offers the lowest APRs of Bankrate-reviewed lenders with terms as long as seven years. The lender will even beat any apples-to-apples competitor rate by 0.1 percentage points, assuming you qualify. LightStream doesn’t charge any fees, including origination fees.  A few drawbacks include a high minimum credit score requirement of 695 and the lack of a prequalification option.

Upstart

Upstart is Bankrate’s 2024 awards winner for best bad credit personal loan lender, offering loans for borrowers with credit scores as low as 300 or no credit history. Prepare for sticker shock if you need a $35,000 personal loan and have scores on the lower side. Upstart’s APRs are as high as 35.99 percent and their terms are capped at 60 months. That makes it a pricey bad credit loan option, especially for higher loan amounts.

Achieve

Achieve offers low start rates and is Bankrate’s winner for best debt consolidation loan. In fact, 75 percent of Achieve borrowers on Bankrate used their funds to clear out other debt. Achieve also allows co-borrowers, which may come in handy if you’re having trouble qualifying for $35k on your own. You will need a different lender if you’re in one of the nine U.S. states Achieve doesn’t serve.

LendingClub

LendingClub is a good option for fair credit borrowers that want to consolidate debt. The lender’s minimum credit score is 600, making it a good alternative to Achieve’s 620 minimum. LendingClub offers payment date flexibility and a direct payment option to creditors you want to pay off with debt consolidation. However, the lender’s 60-month maximum term may make your payment unaffordable, especially if your rate is close to its 35.99 percent maximum.

Upgrade

Upgrade offers fast approvals and funding times as soon as one day 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 $35k loan payment more affordable than the standard 60-month options offered by other fair credit lenders. Upgrades 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.

Best Egg

Best Egg may be worth a look if you want to consider secured loan options. The lender offers a vehicle loan and one-of-a-kind home fixture loan with rates discounted 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 either option.

Prosper

Prosper was one of the first peer-to-peer lenders to enter the loan market. This model shows your application to several investors at once, rather than just one. The lender allows co-borrowers to help you qualify for higher loan amounts. However, Prosper’s APRs are unimpressive. Prosper is also one of few lenders that don’t offer an APR discount for setting your payments on autopay.

SoFi

SoFi offers terms as long as 84 months, making it a solid choice for higher loan amounts. It also sets a slightly lower minimum credit score of , so it’s a good alternative if you don’t meet LightStream’s 695 credit score minimum. SoFi is Bankrate’s winner for best overall online lender, and even allows co-borrowers to help qualify.

2. Review qualifying requirements for a $35,000 loan

Applying for a loan amount as high as $35,000 may require extra steps to qualify. 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.

Stable income and low debt

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 before-tax income. Lenders prefer a ratio under 36 percent, though up to 50 percent may be acceptable.

If the ratio is too high, you may be offered a lower amount or even be rejected.

Lenders also need to verify consistent income. Salaried or full-time hourly pay is the easiest to get approved. Self-employed, variable or low income may not be acceptable, especially for a $35,000 loan.

High credit scores

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 may be three times higher than what’s offered to an excellent credit borrower. The table below shows current average APRs and how they would translate to payments on a $35,000 loan with a 60-month term.

An excellent credit score could save you several hundred dollars per month on a $35,000 loan. Take steps to boost your score like paying off revolving debt and avoid opening multiple accounts at once.

Financial documents

When you’re ready to apply, gather the following:

• Two forms of identification: Driver’s license, passport, state-issued identification card, passport or military identification card.
• Employer information: Employer’s name and supervisor’s name, email address and phone number.
• Bank information: Because most lenders direct deposit your funds, have your routing and account number information handy. You’ll also need this info to set up automatic payments.
• Proof of income (traditional employment): Most recent pay stubs, W-2s, 1099s, tax returns or bank statements.
• Proof of income (self-employment): 1099s, tax returns or bank statements.
• Proof of residency: Lease agreement, mortgage statement, utility bill, property tax bill, voter registration card or insurance bill.

3. Calculate the costs of a $35,000 loan

People usually focus the most on monthly payments when borrowing money. However, fees and long-term interest cost 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 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 across a 36-, 60- and 84-month term for a $35,000 loan with a 12 percent APR and a 5 percent origination fee.

As you can see, the extra monthly savings of a longer term comes with higher lifetime loan costs.

4. Shop and compare $35,000 loan offers

After you’ve crunched numbers and know where you want your payment and what different lenders offer, it’s time to start gathering quotes. Check with your local bank to see if they offer any specials and credit unions. And explore Bankrate’s lender picks for some of the best personal loan rates on the market.

It’s best to review at least three offers and compare fees, terms and APRs. Check for automatic payment discounts or special deals on secured personal loan options. One caveat: Choose lenders offering prequalification options to avoid damaging your credit with too many hard inquiries.

5. Compete your loan and start repaying

Once you choose a lender, you’ll submit the full application. At that point the lender will pull your credit and finalize your loan terms. You may need to provide final documents like paystubs, W-2s and bank account information. Once you sign your documents, your funds will usually be directly deposited into your account.

Personal loan funds are often available within one business day if you qualify. That’s much faster than the two to six weeks to close a $35,000 home equity loan or HELOC.

How to determine if a personal loan is the best way to borrow $35,000

A personal loan has distinct advantages over $35,000 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.
• 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, compared to personal loans which 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 take the risk you could lose your home due to a loan default, a personal loan doesn’t add a lien to your home.