If you need $30,000 quickly or for a large expense, a personal loan could be the answer. Whether you are planning a wedding or you need cash to go to college, there are loans available for a range of credit scores from both online lenders and banks.
It’s key to understand the costs before you take out a $30,000 personal loan. You won’t just be paying back the loan amount. You will be responsible for any interest accrued too. It’s also important to think about what the loan will get you. Investing in home renovations may give you more equity, while using a loan for a vacation doesn’t have any monetary payout.
Personal loan lenders that offer $30,000 loans
When looking for a personal loan, it’s important to shop around. Different lenders may have better rates or terms or they may cater better to certain credit scores. You can talk to banks, online lenders or peer-to-peer lenders like Prosper. Here are a few top options for $30,000 personal loans.
| APR range | Loan amount range | Minimum credit score requirement | |
|---|---|---|---|
| Best Egg | 8.99%-35.99% | $2,000-$50,000 | 600 |
| LightStream | 8.89% to 24.29%* with Autopay | $5,000-$100,000 | 695 |
| Upgrade | 8.49%-35.99% | $1,000-$50,000 | 600 |
| SoFi | 8.99%-29.49% | $5,000-$100,000 | 680 |
Best Egg
Aiming to bring you simple personal loan options of up to $50,000, Best Egg allows you to check your rate in just a few minutes by filling out an online form. They provide personal loans for various options, from emergency loans, to home renovation funding.
LightStream
Another online lender, LightStream allows customers to apply for a loan on their website or mobile app. If customers are approved quickly, they can receive loan funds as soon as the same day they apply. If you’re not happy with the service, the lender will send you $100.
Upgrade
When you apply, Upgrade gives you multiple loan options, and you pick the one that best fits your needs and budget. With Upgrade, you can get personal loans for up to $50,000.
SoFi
SoFi offers loans for anywhere from $5,000 to $100,000. Depending on your monthly budget, you can choose a loan term length between two years and seven years. SoFi will do a soft credit inquiry to figure out which loan options you qualify for and will only do a hard inquiry once you choose a loan option.
Requirements to receive a personal loan
While every lender varies on the exact requirements for a personal loan, there are a few things you will generally need. The lender needs to verify that you have sufficient income to pay back the loan, and they will want to check your financial history to make sure you are reliable.
Be prepared for the lender to ask for these requirements when you apply:
- A good credit history: Lenders will check your credit score and payment history by doing a hard credit inquiry. This allows them to look at your history from the past seven years and see whether you’ve typically made payments on time.
- A high enough income: Part of the lender’s evaluation of your loan application includes determining whether you can afford the payments. With a loan amount of $30,000, you will need sufficient income to make monthly 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 ratio (DTI). This is a number they calculate by adding together all your debt and dividing it by your income. Generally, lenders prefer a DTI of 36 percent or lower.
- The documents to prove it all: When giving the lender all your information, they will want to have documentation that shows it is all true. Personal loan documents typically include proof of identity, employer and income verification documents — like a pay stub, and something that proves your address.
- Origination fee: Some lenders charge a fee to cover the costs of processing your loan application. However, sometimes they waive the fee if you have a good credit score.
Costs of a $30,000 personal loan in the long term
When you take out any loan, you agree to pay interest. This means that over the life of your loan you will pay the total amount you borrowed plus interest that accrues over your loan term. 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 (APR) of 8 percent and a term length of 5 years. You will pay a total of $6,497.51 interest if you make all of your monthly payments on time.
Use a loan calculator as you shop for loans to see how much interest you could pay. Remember that making any extra payments can help bring down the total interest you pay throughout the life of the loan.
How to determine if you need a $30,000 loan
Personal loans can be used for virtually anything, and there are a lot of reasons you might want to apply for one. However, it’s important that you only take out an amount of debt you can handle. Some of the more common reasons for a personal loan include:
- Wedding
- Education
- Home renovations or projects
- Consolidating debt
- Vacation
- Financing a vehicle
While people often 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. However, debt that is just for fun might not be the best idea, especially if you are not sure if you can make the payments or work them into your budget.
You want to make sure it is a good idea to get a loan this large. Some of the best uses for this amount might be consolidating debt from other loans 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.
No matter what you decide, know what you are getting into. Use a loan calculator to determine the payment amount for your loan. Then, pay off your loan in the specified repayment period.
Bottom line
Taking out a $30,000 personal loan can be helpful if you use it for good. Remember that loans for school and things like home renovations are considered “good” debts, while personal loans for things like vacations or weddings are a little riskier.
Make sure you understand the cost of a loan this size if you plan to take one out. Shop around with different lenders to find the best rates. Banks and online lenders can give you a range of options to fit your needs.
