5 tips for getting 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 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 more favorable terms at many traditional banks, credit unions or online lenders if you shop around for the best personal loan rates. These five tips can be a big help when getting a $35,000 personal loan.

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 and 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 A few drawbacks include a high minimum credit score requirement of 695 and the lack of a prequalification option.

Upstart

Upstart offers 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 months. That makes it a pricey bad credit loan option, especially for higher loan amounts.

Achieve

Achieve offers low start rates and is one of Bankrate’s picks 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 on your own. You will need a different lender if you live in a U.S. state Achieve doesn’t serve.

LendingClub

LendingClub is a good option for fair credit borrowers who want to use a personal loan 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 -month term, which could help keep your $35k loan payment more affordable than the standard 60-month options offered by other fair credit lenders. 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.

Best Egg

Best Egg may be worth a look if you want to consider secured loan options. The lender offers a vehicle loan and a 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, its 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 rock-bottom minimum credit score of , so it’s a good alternative if you don’t meet LightStream’s 695 credit score minimum. SoFi even allows co-borrowers to help qualify.

Understand the requirements for a $35,000 loan

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.

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.

Bankrate tip

Find out which lenders allow joint personal loan borrowers if you don’t qualify for the amount you need on your own. Two combined incomes may settle lenders’ worries about your ability to pay.

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 build credit fast 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: This can include your 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. Include your 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): If you have traditional employment, this can include your most recent pay stubs, W-2s, 1099s, tax returns or bank statements.
• Proof of income (self-employment): For the self-employed, this includes 1099s, tax returns or bank statements.
• Proof of residency: Submit your 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 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 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 your ideal payment, as well as what different lenders offer, it’s time to start gathering quotes. Check with your local bank or credit union to see if it offers any specials, 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 so you can compare fees, terms and APRs. Check for automatic payment discounts or special deals on secured personal loan options. Also, be sure to choose lenders with 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. 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 know if a $35,000 personal loan is right for you

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.
• 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 take the risk you could lose your home due to a loan default, a personal loan can be better because it doesn’t add a lien to your home.

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 is crucial that you do your homework and shop multiple lenders. And remember, if a personal loan seems like a poor fit for your finances, you can research alternatives such as a home equity loan, HELOC or cash-out refinance.