Securing a $100,000 personal loan with optimal rates and terms necessitates excellent credit, a substantial income, and selecting the right lender. Not all personal loan providers extend six-figure loan amounts, and those that do often reserve such sizable sums for borrowers with impeccable financial backgrounds.
While a $100k personal loan presents an attractive alternative to a home equity loan by avoiding a lien on your property, it’s essential to consider its potential impact. Shorter repayment periods and fixed payments could strain your finances if not carefully evaluated against the loan’s benefits and drawbacks.
Before pursuing a $100k loan, thoroughly comprehend all associated factors. This may involve additional research to identify suitable lenders and calculating payments to align with your financial objectives. By taking these steps, you can ensure that the loan aligns with your needs and capabilities.
1. Find lenders that offer $100k personal loans
Few lenders extend $100,000 personal loans, each with varying annual percentage rates (APRs) and approval criteria. Your local bank or credit union might be a promising starting point, potentially offering discounted rates or fee waivers based on your banking relationship.
Bankrate’s specialists have evaluated the following lenders to assist you in initiating your $100,000 personal loan search. For further details on any of these lenders, access the provided review links.
Where to get a $100k loan
| Lender | APR range | Loan amount range | Loan terms | Minimum credit score |
|---|---|---|---|---|
| LightStream | 7.49%-25.49% (with AutoPay) | $5,000–$100,000 | 2-7 years | 695 |
| SoFi | 8.99%-29.49% (with autopay) | $5,000–$100,000 | 2-7 years | 680 |
| Alliant | From 10.99% | $1,000-$100,000 | 1-5 years | Not specified |
| Wells Fargo | 7.49%-23.24% | $3,000-$100,000 | 1-7 years | Not specified |
| USAA | 10.34%-18.51% | $1,000-$100,000 | 1-7 years | Not specified |
LightStream
LightStream offers some of the most competitive personal loan rates among the lenders we’ve reviewed. With a starting rate as low as 7.49 percent, it rivals current home equity loan rates, provided you meet the qualifying criteria. Additionally, you have the flexibility to repay the loan over a period of up to seven years, and you may qualify for a rate discount by enrolling in autopay. LightStream doesn’t charge fees, and if approved, you could receive your funds on the same day you apply. However, it’s worth noting that LightStream requires a relatively high minimum credit score of 695.
SoFi
SoFi stands out for its co-borrower option, which can help lower your debt-to-income ratio and improve your chances of qualifying for a $100,000 loan. This feature makes SoFi a strong contender for obtaining a six-digit loan amount. Although SoFi offers competitive rates, starting at 8.99 percent APR, you may face a higher APR if you choose to forgo paying an origination fee. Additionally, SoFi provides phone support even on weekends, offering assistance when you need it most.
Alliant
Alliant Credit Union offers personal loan options for those who may not qualify for loans from other lenders. While you’ll need to become a member of Alliant Credit Union to apply, if approved, your funds could be available on the same day. However, Alliant’s starting APR may be higher compared to other lenders, and it offers a maximum repayment term of five years.
Wells Fargo
Wells Fargo provides personal loans of up to $100,000 with competitive APRs and flexible repayment terms ranging from 12 to 84 months. Like the other lenders on our list, Wells Fargo doesn’t charge origination fees, which is beneficial, especially for larger loan amounts. However, qualifying requirements aren’t explicitly stated on their website, and you must be an existing Wells Fargo customer to apply.
USAA
USAA caters to military families and offers personal loans up to $100,000 with a wide range of repayment terms. However, USAA’s lowest APR may be higher compared to other lenders, potentially resulting in larger monthly payments. USAA provides 24/7 customer support to accommodate the needs of military personnel stationed worldwide, but eligibility is limited to those who meet their membership requirements.
2. Learn how to qualify for a $100,000 personal loan
Because personal loans typically lack collateral, lenders carefully evaluate your financial stability when considering larger loan amounts, such as $100,000. This means you’ll need a stronger financial profile compared to borrowers seeking smaller loan amounts.
Excellent Credit Score
Lenders typically require a minimum FICO credit score of 680 for $100,000 loans. However, an exceptional score of 800, coupled with a high income, can expedite the approval process and grant access to the most favorable interest rates. It’s important to note that approval for an unsecured $100,000 loan is highly unlikely with a credit score below the “good” range, which generally starts at 670 on the FICO scale.
| Credit score | Average loan interest rate | Average payment |
|---|---|---|
| 720-850 | 10.73%-12.50% | $1,698-$1,792 |
| 690-719 | 13.50%-15.50% | $1,846-$1,958 |
| 630-689 | 17.80%-19.90% | $2,090-$2,215 |
| 300-629 | 28.50%-32.00% | $2,759-$2,995 |
High and Stable Income
Lenders often impose specific income thresholds for loan eligibility. You must demonstrate a consistent and reliable income, preferably from salaried employment or full-time hourly work.
Debt-to-Income Ratio (DTI)
Your DTI ratio, calculated by dividing your monthly debt payments by your income, is a key factor in loan approval. Lenders typically prefer a DTI below 36 percent, indicating that you have sufficient income to cover your existing debts as well as the new loan.
Documentation
You’ll be required to provide documentation to verify your identity and address. Acceptable forms of identification include a driver’s license, state-issued ID, passport, birth certificate, or Social Security card. Proof of address can be established through utility bills, insurance statements, lease agreements, or bank statements.
3. Calculate the costs of a $100,000 loan
When borrowing $100,000, it’s crucial to consider how the monthly payment aligns with your budget. However, if you have the means to repay the loan ahead of schedule, you could potentially save thousands of dollars in interest. While the lenders listed above generally do not charge origination fees, it’s still wise to review the loan offer thoroughly for any hidden costs.
To gauge your borrowing costs accurately, utilize a personal loan calculator. Experiment with different loan terms to observe how the monthly payment and total interest expenses fluctuate. Below, we’ve provided calculations for three-, five-, and seven-year terms for a $100,000 loan, presuming a 7.50 percent interest rate, to offer insight into potential repayment scenarios.
| Loan term | Monthly payment at 7.50 percent | Total interest paid |
|---|---|---|
| 36 months | $3,111 | $11,982.39 |
| 60 months | $2,004 | $20,227.69 |
| 84 months | $1,534 | $28,841.52 |
4. Compare $100k loan offers at different lenders
Lenders understand the potential profitability of a $100,000 loan, which often leads them to compete for your business. To ensure you secure the best deal, consider prequalifying with multiple lenders, including banks, credit unions, and online lenders, to compare APRs.
If you have existing checking or savings accounts, inquire with your local bank about any incentives they offer for loan applicants.
For online lenders, inquire about price match guarantees. For instance, LightStream’s Rate Beat Program may lower your rate by 0.10 percentage points if you provide evidence that a competitor approved them for a better rate before your loan disburses.
5. Sign your papers and receive your funds
Once your paperwork is completed, your loan funds are typically deposited directly into your account. Personal loans usually fund more quickly compared to secured large loan products.
Many personal loan providers offer same-day or next-day funding. However, before receiving your funds, you’ll typically need authorization from your lender for deposit and payment withdrawal.
Alternatives to $100,000 personal loans
Personal loans stand out as the top choice for unsecured lending at higher amounts. Yet, if you own a home with sufficient equity, securing a $100,000 loan at a lower rate might be possible. The drawback is the risk of losing your home if you’re unable to repay the loan.
Home equity loan
A home equity loan functions similarly to a personal loan in many aspects. You receive the entire loan amount upfront, and both your interest rate and monthly payments remain fixed throughout the loan’s duration. Home equity loans offer the flexibility of spreading payments over extended terms, even up to 30 years. Moreover, using the funds for home improvements may qualify you for a tax deduction.
However, expect a more extensive application process and a home appraisal. To borrow $100,000, you’ll need substantial equity in your home, typically up to 85 percent of its value. Additionally, achieving the best rates often requires a credit score of 700 or higher.
It’s essential to factor in closing costs, which typically range from 2 to 5 percent of the loan amount. These costs reduce the net amount you receive from the loan.
Home equity line of credit (HELOCs)
A home equity line of credit (HELOC) operates similarly to a credit card secured by your home. During the draw period, you can access and reuse the funds as needed. Payments fluctuate based on your usage, and during this period, you may have the option to make interest-only payments, potentially resulting in lower payments compared to a personal loan.
Similar to a home equity loan, the interest on a HELOC may be tax-deductible if the funds are used for home renovations.
While closing costs are typically lower with HELOCs, lenders may impose ongoing fees and even close-out fees if you choose to close the account. Additionally, the variable interest rates associated with HELOCs mean that your rate could increase if the Federal Reserve raises interest rates.
Cash-out refinance
If your credit scores fall below the threshold for personal loans or home equity financing, a cash-out refinance might be worth considering. In this scenario, you would replace your existing mortgage with a new one that includes an additional $100,000 borrowed against your home’s equity. However, substantial equity is required, as most cash-out refinance programs cap borrowing at 80 percent of your home’s value.
Additionally, be prepared for closing costs ranging from 2 to 5 percent of the loan amount, which can be significant given the increased borrowing. The approval process for a cash-out refinance is more rigorous, involving a thorough assessment of your home’s value. As a result, completing a cash-out refinance can take up to 45 days or even longer.