How to get a $100,000 personal loan
Are you in need of a lump sum in the ballpark of $100,000? Are you looking to do a major home renovation? If so, a personal loan may be able to help.
So, is one right for you? Here's a closer look at how to get a $100,000 personal loan, including the qualification requirements, costs, and funding times. Plus, find three alternative ways to get a large loan amount!
If you're in the market for a personal loan then reach out to an expert today. They can answer any questions you have and help you get started.
What is a personal loan?
A personal loan is an installment loan that individual borrowers can get and use for personal purposes such as debt consolidation, home improvements, and medical emergencies. It's typically unsecured so approval requires good credit and a stable income source. Upon approval, borrowers receive a lump sum upfront and then repay it, plus interest, over a set number of months (known as the term).
How to get a $100,000 loan
The first step in getting a $100,000 personal loan is finding one. While many banks, credit unions, and online lenders offer personal loans, few offer loan amounts up to $100,000. That said, they are out there. A few well-known companies that currently offer them are Lightstream and SoFi.
How can you qualify for a $100,000 personal loan?
Once you have a shortlist of lenders that offer $100,000 loans, the next step is to find out if you qualify. In most cases, $100,000 is the largest personal loan amount on offer. As a result, only the most well-qualified borrowers will be eligible.
With Lightstream, for example, you'll need:
- 5+ years of significant credit history with various credit types
- Assets that prove your ability to save
- Stable income that's more than sufficient to pay off the loan
- Excellent payment history and no derogatory marks
Qualifications will vary by lender, but most require excellent credit and a stable income source that can easily cover the payments.
Do you think you'd qualify for a loan of this amount? Speak to a personal loan expert now who can help get you set up.
How long will you have to repay a $100,000 loan?
Lenders vary in how long they give borrowers to repay personal loans. For example, Lightstream offers loan terms that range from two to 12 years, while Wells Fargo's terms range from one to seven years. Longer terms result in lower monthly payment amounts, but they cost more over time due to the additional interest charged. You'll have to weigh the pros and cons to decide which term is best for your situation.
How much will a $100,000 loan cost with interest?
The cost of a $100,000 loan, and any loan for that matter, will depend on the rates and terms you get. More specifically, you'll need to look at the fees charged, your assigned interest rate, and the loan term.
Once you've filled out a personal loan application and received an offer, use a personal loan calculator to estimate your total cost.
How long does it take to get a $100,000 loan?
The funding time on a $100,000 personal loan will depend on your lender's origination process. However, it tends to be pretty fast. For example, Lightstream claims it gives credit decisions within hours and funds loans as soon as the same day. To know what to expect, check the funding times of lenders you're considering. To learn more about LightStream, click here.
Alternatives to a $100,000 loan
Large personal loans can be quick and convenient for those that qualify. However, they can also come with strict eligibility requirements and high APRs. So, what are some alternatives?
- If you're a homeowner, consider borrowing against your home equity or look into a cash-out refinance.
- A reverse mortgage can also be an option if you're at least 62 years old and own your home (or most of it).
- If you have a 401(k) plan, you may be able to borrow against it with no credit check and very competitive rates.
Overall, there are several routes you can take to secure a large loan. Be sure to weigh your options to find the best fit. And don't forget to shop around for the best deal! Rates, terms, and approval requirements often vary from one lender to the next. Speak to an expert or use the table below to get started.
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