The Best Lenders for a $50,000 Personal Loan
The providers on our list offer competitive annual percentage rates (APRs), which measure the true cost of the loan – both interest rate and fees. They also have flexible terms, a straightforward application process, quick approval times and a variety of loan options to cater to different needs.
- LightStream: Our top pick
- SoFi: Best customer service
- PenFed: Best for small loans
- Upstart: Best for bad credit
- U.S. Bank: Best for bank switchers
- Upgrade: Best discounts
- Wells Fargo: Best for in-person service
LightStream
Our Top Pick
5.0
Our Rating
Affordability: 33/35
Loan Features: 29/35
Customer Experience: 18/20
Company Reputation: 10/10
Interest Rate (APR)7.49% to 25.49%Term Options24 months to 144 monthsLoan Size Offered$5k to $100k
LightStream Overview
LightStream is an online lending division of Truist Financial Corporation that specializes in providing personal loans. The lender is known for competitive interest rates (starting at 7.49% as of this writing) and a straightforward, customer-friendly approach to lending. LightStream’s Rate Beat Program aims to beat any qualifying competitor’s APR by 0.10 percentage points.
Pros & Cons
Pros Competitive interest rates: Some of the lowest rates in the industry for qualified borrowers, starting at 7.49% No fees: No origination fees, prepayment penalties or other hidden fees required Flexible loan terms: Terms range from two to 12 years, one of the longest on this list Quick funding: Streamlined online application and same-day approval and funding for eligible applicants Cons No in-person branches: Operates solely online, which may be inconvenient for some No pre-approval: Finding out the rate you’ll receive requires a hard credit inquiry, which can temporarily lower your credit score
LightStream Eligibility Requirements
To qualify for a LightStream loan, you will need a good to excellent credit score, which typically means 670 and above,according to credit scoring company FICO. Borrowers with less-than-perfect credit may find it challenging to be approved.
When evaluating applications, LightStream also considers factors such as income, employment history, credit history, loan purpose and debt-to-income (DTI) ratio, which is the sum of your monthly debt payments divided by your gross monthly income.
SoFi
Best Customer Service
4.9
Our Rating
Affordability: 30/35
Loan Features: 29/35
Customer Experience: 19/20
Company Reputation: 10/10
Interest Rate (APR)8.99% to 29.49%Term Options24 months to 84 monthsLoan Size Offered$5k to $100k
SoFi Overview
SoFi is a well-known online lender recognized for its user-friendly online platform and unique customer benefit programs – including career counseling, financial planning and access to exclusive events. The company also may pause your payments if you lose your job, helping you get back on your feet financially.
Pros & Cons
Pros Potentially competitive interest rates: Rates range from 8.99% to 29.49%, as of this writing No fees: No origination fees or prepayment penalties Robust mobile app: Easily manage accounts and access financial planning tools Cons Limited physical branches: Primarily operates online, limiting customers who prefer in-person banking May not offer the lowest rates for all borrowers: Those with excellent credit may find lower rates elsewhere. No joint applications: The lender does not allow joint applications, which can be a drawback for couples or co-borrowers.
SoFi Eligibility Requirements
SoFi’s eligibility requirements vary depending on the type of loan, but in general, the lender typically looks for applicants with a strong credit score around 670 or higher. SoFi also considers factors like income, employment history, DTI ratio and loan purpose in its approval process.
PenFed Credit Union
Best for Small Loans
4.8
Our Rating
Affordability: 35/35
Loan Features: 24/35
Customer Experience: 17/20
Company Reputation: 10/10
Interest Rate (APR)7.99% to 17.99%Term Options12 months to 60 monthsLoan Size Offered$600 to $50k
PenFed Overview
PenFed, short for Pentagon Federal Credit Union, is one of the largest U.S. credit unions and primarily serves military and government personnel. However, membership is open to everyone in the country. PenFed really shines on smaller loans – offering loans as small as $600 – but remains a solid choice for a larger loan.
Pros & Cons
Pros Attractive interest rates: Competitive interest rates between 7.99% and 17.99% as of this writing No origination fees: Origination fees not required on personal loans Member discounts: PenFed membership discounts on car insurance and rentals, tax services and financial literacy programs Financial hardship protection: Financial hardship program can temporarily pause payments for applicable customers Co-signers welcome: PenFed allows co-borrowers, which may help you qualify for a better rate. Cons Membership requirements: While PenFed has expanded its eligibility criteria, some still find it challenging to qualify for membership. Limited branch network: Scarce physical branches may be a drawback for customers who prefer in-person banking. Potentially lengthy approval process: The approval process for a PenFed personal loan may take some time, especially if additional documentation is required. Early repayment penalties: Some PenFed personal loans may have early repayment penalties or prepayment fees.
PenFed Eligibility Requirements
To become a member of PenFed, you typically need to meet certain eligibility criteria. These criteria can include the following:
- Military or government affiliation, including active duty, reserves or veterans
- Employment or association with eligible organizations
- Family or household relationships with current PenFed members
The minimum credit score for PenFed loans is 650, and having a higher credit score can help you qualify for better loan terms and lower interest rates. PenFed also looks at income, employment, DTI ratio and loan purpose.
Upstart
Best for Bad Credit
4.4
Our Rating
Affordability: 28/35
Loan Features: 25/35
Customer Experience: 17/20
Company Reputation: 10/10
Upstart Overview
Upstart is an online lending platform that uses artificial intelligence to assess borrowers’ creditworthiness and offer personal loans. The company has gained recognition for its innovative approach to lending, featuring a unique underwriting model that offers loans to individuals with limited credit histories or non-traditional backgrounds, providing opportunities to borrowers who may not qualify with traditional lenders.
Pros & Cons
Pros Quick funding: Upstart’s technology allows for quick loan approval, often within minutes, allowing some borrowers access to funds as soon as the next business day. Customized rates: The lender tailors loan offers to each borrower’s unique profile, which can lead to more personalized terms and rates. Transparency: Upstart is known for its transparent loan terms and fees, making it easier for borrowers to understand the cost of their loans. Cons Higher interest rates: Some borrowers with excellent credit may find lower interest rates elsewhere, as Upstart’s rates can be higher than those of other lenders – up to a maximum of 35.99%. Origination fees: Upstart may charges an origination fee of up to 12%, one of the highest on this list. No joint applications: Upstart does not offer joint loan applications for co-borrowers looking to apply together.
Upstart Eligibility Requirements
While other lenders may look at your credit score first, Upstart uses a more holistic approach to assess creditworthiness, adding more weight to factors like education, income, employment, job history, DTI ratio and loan purpose. However, a minimum credit score of 300 is typically required, and the lender does look at credit history.
U.S. Bank
Best for Bank Switchers
4.4
Our Rating
Affordability: 34/35
Loan Features: 28/35
Customer Experience: 12/20
Company Reputation: 5/10
Interest Rate (APR)8.74% to 24.99%Term Options12 months to 60 months (for non-customers)Size Offered$1k to $50k
U.S. Bank Overview
Established in 1863, U.S. Bank is one of the country’s largest and oldest financial institutions. With a commitment to customer service, a vast network of branches and a variety of personal loan options, U.S. Bank is a popular choice for both its existing customers, as well as new ones. People with U.S. Bank checking accounts get dramatically better terms on their personal loans, so we recommend this lender to people who have this account already or are looking to open a new checking account.
Pros & Cons
Pros No fees or penalties: U.S. Bank doesn’t charge origination fees or prepayment penalties. Autopay discount: Borrowers can reduce their annual percentage rate (APR) by 0.50% through U.S. Bank’s autopay discount that pulls funds directly from their checking or savings account. Quick online application: Applicants can complete their online application and receive approval within minutes. U.S. Bank existing customers can sometimes receive their funds on the same day. Cons Limited availability: U.S. Bank’s personal loans are not available in all states and may require borrowers to go into a branch to complete their application. No prequalification: U.S. Bank does not offer online prequalification. You must submit a full application and undergo a hard credit check to find out your rate.
U.S. Bank Eligibility Requirements
U.S. Bank typically looks for borrowers with a good to excellent credit score of 720 or higher for non-bank customers and 660 or above for existing customers. Additionally, applicants must provide proof of income, employment history and DTI ratio. Some U.S. Bank personal loans may require collateral, such as asavings accountorcertificate of deposit.
Upgrade
Best Discounts
4.3
Our Rating
Affordability: 22/35
Loan Features: 28/35
Customer Experience: 18/20
Company Reputation: 10/10
Interest Rate (APR)8.49% to 35.99%Term Options24 months to 84 monthsLoan Size Offered$1k to $50k
Upgrade Overview
Upgrade is a reputable online lending platform that offers personal loans and credit lines to borrowers needing financial assistance. The company is known for its user-friendly online application process, a wide range of loan options and customer discounts. These include an autopay discount, a discount for consolidating debt, and a bonus for opening up an Upgrade checking account.
Pros & Cons
Pros Direct creditor payments: Upgrade offers the convenience of making direct payments to creditors when using a personal loan for debt consolidation. Discount opportunities: Upgrade offers various discounts, including an autopay discount, creditor payment discounts and eligibility for additional discounts with an Upgrade checking account. Co-applicants accepted: Upgrade permits you to apply for a loan with a co-applicant. Cons Origination fees: All Upgrade loans have an origination fee of between 1.85% and 9.99%, which raises the total cost of borrowing. Late payment fee: Upgrade imposes a $10 fee for late payments, which borrowers should be aware of to avoid unnecessary charges.
Upgrade Eligibility Requirements
Upgrade typically requires borrowers to have a minimum credit score of around 560 to be eligible for their loans. However, meeting this credit score requirement does not guarantee approval, as other factors like income and DTI ratio also play a role in the approval process.
Wells Fargo
Best for In-Person Service
4.3
Our Rating
Affordability: 35/35
Loan Features: 26/35
Customer Experience: 17/20
Company Reputation: 0/10
Interest Rate (APR)7.49% to 23.24%Term Options12 months to 84 monthsLoan Size Offered$3k to $100k
Wells Fargo Overview
With a history dating back to 1852, Wells Fargo is one of the largest banks in the U.S., serving millions of customers nationwide. With a wide range of personal loan options and a vast network of branches, Wells Fargo is a top pick for customers who prefer face-to-face interactions. It’s one of the few lenders where you can actually apply for the loan in person.
Pros & Cons
Pros Relationship discount: When you set up automatic loan payments from your Wells Fargo checking account, you become eligible for an interest rate reduction ranging from 0.25 to 0.50 percent. No origination fees: Wells Fargo does not impose any origination fees. The amount you see in your loan offer is the exact amount you’ll receive if you accept it. Rapid funding: Applicants often receive their loan funds on the same day or the next business day after approval. Cons Must be a customer: To qualify for a Wells Fargo personal loan, you must have had a Wells checking account for at least a year. Fees: Wells Fargo may charge late fees and other fees associated with personal loans. Limited availability: Wells Fargo personal loans may not be available in all areas, so check if they operate in your region.
Wells Fargo Eligibility Requirements
Wells Fargo applicants typically need a good to excellent credit score of 670 or higher. You must also provide documentation of your credit history, income, DTI ratio and loan purpose. If you opt for a secured personal loan, you’ll need to provide collateral (e.g., a car or savings account).
Our team’sWells Fargo reviewdives deeper into the bank.
How To Get a $50,000 Personal Loan
Taking on a $50,000 personal loan is a significant financial decision that requires careful research and planning. Assess your financial situation, creditworthiness and loan needs before starting the application process to ensure this decision aligns with your financial goals and capabilities.
Applying for a $50,000 Personal Loan
To make the most informed choice, you should thoroughly understand the application process for a $50,000 personal loan.
- Investigate lenders: Before applying for a personal loan, research and compare lenders, such as banks, credit unions and online providers. Look at factors including interest rates, repayment terms, fees, eligibility criteria and customer reviews.
- Seek prequalification: Some lenders offer prequalification. This usually involves a soft credit check (which doesn’t affect your credit score) to estimate your loan eligibility, including your potential loan amount and corresponding interest rate.
- Prepare required documentation: A variety of documents are typically required to apply for a personal loan, including:
- Proof of income (pay stubs, tax returns or bank statements)
- Proof of identity (driver’s license, passport or social security card)
- Employment history and contact information
- Credit history information, including your credit score
- Submit your application: Once you’ve chosen a lender and gathered all necessary documents, you can start the application process. Most lenders offer online applications, making the submission process easy to complete. Be prepared for the lender to conduct a hard credit inquiry, which may temporarily drop your credit score.
- Underwriting and approval: After you submit your application, the lender will review your information, conduct a credit check and measure your ability to repay the loan. Depending on the lender, this process can take anywhere from a few hours to a few days. If approved, you’ll receive a loan offer specifying the terms and conditions.
- Accept the loan offer: If you’re satisfied with the loan offer, you can formally accept it by signing the loan agreement. Review the terms carefully, including the interest rate, repayment schedule and any associated fees.
- Funding: Once you’ve accepted the loan offer and completed any additional verification steps, the lender will disburse the funds into your designated bank account. This process can vary in length depending on lender policies.
- Repayment: After receiving the funds, you’ll make regular payments according to the agreed-upon fee schedule.
Requirements for a $50,000 Personal Loan
To qualify for a $50,000 personal loan, borrowers typically need to meet several eligibility criteria. These requirements can differ depending on the lender, but the following factors generally are always taken into consideration.
Credit Score
A strong credit score is a fundamental prerequisite for securing a personal loan of this size. Most lenders prefer borrowers with a credit score in the good to excellent range (670 or higher), indicating a history of responsible financial management.
Income Level
Income level is another crucial factor. Lenders want to ensure that borrowers have a stable source of income to repay their loans. Moreover, the higher your income, the more likely you are to qualify for a larger loan.
Debt-to-Income (DTI) Ratio
Lenders will also evaluate your debt-to-income ratio, the percentage of your monthly income that goes toward paying existing debts. A lower DTI ratio (43% or less) is preferred as it shows your ability to handle additional debt and indicates a lower financial risk for the lender.
Borrowers with excellent credit scores, higher income levels and lower DTI ratios are more likely to secure a $50,000 personal loan with lower interest rates and more favorable terms. On the other hand, borrowers with lower credit scores, income levels or higher DTI ratios may still qualify but will likely face higher interest rates and stricter terms to mitigate lender risk.
Alternatives to a $50,000 Personal Loan
While a personal loan might seem ideal for obtaining $50,000, it may not be your best option. There are alternative lending options for securing $50,000 that may better suit your circ*mstances, including:
Home Equity Line of Credit (HELOC)
A HELOC is a revolving line of credit (similar to a credit card) that allows you to borrow against your home’s equity. HELOC interest rates tend to be lower than those of personal loans. However, you must weigh the risks associated with using your home as collateral, as defaulting on payments could lead to foreclosure. Learn more about HELOCs here.
Home Equity Loans
Similar to a HELOC, a home equity loan allows you to borrow against your home’s equity, providing you funds in a lump sum upfront at a lower interest rate. However, like HELOCs, home equity loans come with the risk of losing your property if you cannot repay the loan. Read more about home equity loans here.
Peer-to-Peer Lending
Peer-to-peer (P2P) lending is an online platform that connects borrowers with individual investors willing to lend them money. P2P lending tends to be more forgiving of those with bad credit compared to personal loan lenders, but interest rates are typically higher. To explore this option, sign up on a P2P lending platform, create a listing profile (providing details of your loan request) and wait for investors to fund your loan. Find out more about peer-to-peer lending here.
Things To Consider When Applying
Securing a $50,000 personal loan is a significant commitment. The decision-making process should not be taken lightly. Think carefully about the loan itself. The borrowed funds must be used responsibly for their intended purpose. Misusing funds can often lead to financial difficulties.
You also need a solid repayment plan. Assess your current income, expenses and any existing debts. Ask yourself: Can I comfortably afford the monthly loan payments without straining my finances? A detailed budget can help determine how a personal loan fits your financial picture.
Lastly, seek guidance from a financial advisor or expert to gain more insights into the application process and better understand a personal loan’s long-term financial implications. Their expertise can help you make a well-informed decision that will likely save you money in the long run.
Frequently Asked Questions about $50,000 Personal Loans
The time it takes to pay off a $50,000 loan depends on several factors, including your interest rate and the chosen repayment schedule. Personal loan terms typically range from 12 months to 5 years. Your loan terms affect how much you pay out on your loan overall, with longer terms generally being more expensive than shorter ones.
The credit score needed for a $50,000 personal loan can vary depending on the lender. A credit score of 670 or higher is considered to be good, and it will likely qualify you for many personal loans. However, to secure a loan with the best terms and lowest interest rates, a credit score of 725 or higher is often recommended. Check with one of the credit bureaus — Equifax, Experian or TransUnion — to determine your current credit score. Remember that lenders also consider other factors such as your income, DTI ratio and employment history when determining eligibility.
The maximum amount you can secure as a personal loan depends on various factors, including your creditworthiness, income and lender policies. Personal loans typically range from a few thousand dollars to $100,000 or more for well-qualified borrowers. Some lenders may offer larger loans for specific purposes, such as home renovation or debt consolidation. Of course, with a larger loan amount comes a higher level of scrutiny and may require collateral or a co-signer in some cases.
Payday loans are the easiest loans to obtain, but typically very risky and costly. A payday loan is a short-term, high-interest loan typically offered to individuals needing immediate cash to cover unexpected expenses or bridge a financial gap. These loans are usually characterized by their quick approval process and minimal requirements, making them accessible to individuals with poor or no credit history. Borrowers are expected to repay the loan, along with a substantial fee or interest charge, on their next payday, which can result in a cycle of debt for some borrowers if they are unable to meet the repayment terms. Avoid this type of loan if you can.
Methodology: Our System for Ranking the Best Personal Loans
Our team put together a comprehensive100-point rating systemto evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the US and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability(35%): How expensive each company’s loans are to pay back.
- Loan features(35%): The breadth of loan terms and features available to prospective customers.
- Customer experience(20%): Ease of application, prequalification and customer service interactions.
- Company reputation(10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions.
Our top-rated lenders may not be the best fit for all borrowers. To learn more,read ourfull personal loans methodology.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
Laura PerryContributor
Laura is a financial services writer with more than a decade’s worth of industry experience. She earned her bachelor’s degree from the Medill School of Journalism at Northwestern University. In addition to writing, Laura has a passion for fitness, also working as a personal trainer and group fitness instructor.
Jen Hubley LuckwaldtEditor
Jen Hubley Luckwaldt is an editor and writer with a focus on personal finance and careers. A small business owner for over a decade, Jen helps publications and brands make financial content accessible to readers. Through her clients, Jen’s writing has been syndicated to CNBC, Insider, Yahoo Finance, and many local newspapers. She is a regular contributor to Career Tool Belt and Career Cloud.
