Though it relies on many criteria, it is not impossible to be accepted for a substantial personal loan with weak or negative credit. Assuming, on the other hand, that you have strong credit—shown by a credit score of 700—you may easily get 50,000 dollars for a personal loan. Still, it considers other loan terms and conditions as well as interest rates, which could vary across lenders.
Minimum credit score required to qualify for a $50,000 loan
Auto creditors prefer their clients to have a credit score of at least 670 before approving them for a personal loan. However, some lenders can offer their loans to people with a score of 580. Ideally, the higher the credit score – often over 700 – the higher the chances one has of being approved and the lower the interest rate.
Though it is possible to agree on a $50000 personal loan with a 700 credit score, getting a score higher than 740 improves your odds of approval and good terms. It also aids in offsetting other variables such as low-income or high debt-to-income percentage.
Conditions that influence the ability to Obtain a Loan
When you are looking for a big personal loan, your credit report including your credit score is closely reviewed by the lenders. But they also consider other key financial factors, including But they also consider other key financial factors, including:
- Debt – A good repayment record and reliable source of income within the appropriate range as to the requested loan amount increases the chances of approval. Some lenders may have a minimum income they expect one to make for instance for a $50000 loan, one should be earning at least $ 2500 monthly.
- Debt to Income ratio (DTI)– Total monthly obligations – mortgage, credit card, student, personal, etc. divided by gross monthly income. A DTI above 50% works against approval but it means that approval is only difficult and not impossible.
- Assets – The presence of significant assets will provide solidity to the application, and it would be even better if you’re able to put a down payment on the loan.
- Income security – It is desirable that you have had a steady job income from the same occupation for more than two years. This is because necessities such as wages are considered a more secure form of income compared to other erratic sources such as bonuses, commissions, or profits earned from investments.
Besides, having the other above conditions in check, a 700 credit score will definitely and somewhat situation the approval process.
How to Secure a $50,000 Personal Loan with 700 Credit
Given the countless lending firms and choices available in the market, it may be overwhelming to identify the best place to apply for a personal loan. Some of the online platforms that can help you shop for personal loans compare rates and other related services from several personalized loan lenders at Credible. It is often quicker easier and less complicated than trying to go directly to a lender on your own.
Some top places to consider for personal loans with a 700 credit score include: Some top places to consider for personal loans with a 700 credit score include:
Online lenders Some of the well-known online lenders that can be used instead of a typical local bank or a credit union include Prosper, Social Finance (SoFi), as well as Lightstream. They operate with individuals who have little or no credit history or bad, fair, or good credit (with a score of 670 and above). credit from online lenders will consider factors other than credit scores besides other records such as education and career. Lightstream offers loans ranging from $5,000 to $100,000 while Prosper and SoFi loan offer only up to $50,000.
Credit unions Credit union is another option because they can also offer cheaper personal loans than most big banks out there. Loans in credit unions are also referred to as member-balance since members of the credit union are the source of the funds. In so doing, they are in a position to extend credit to those with a credit score of 670 or perhaps lower depending on the specific credit union’s policies. Navy Federal Credit Union provides up to $50,000 with a minimum credit score of 700, but no expected debt-to-income ratio, while Pentagon Federal Credit Union offers loans up to $50,000 with even softer requirements for the credit check.
Banks Large financial institutions such as Wells Fargo, Chase & Co, and Bank of America can offer loans of up to $100,000 for those with soft credit checks of 700 and above. However, maximum loan amounts are slightly lesser in the fair credit score range for borrowers. It is also important to note that credit cards in banks come with another form of credit checkthat includess your debt-to-income ratio, and credit history among other things. While it is not impossible to get approved with a credit score of around 700, the same applicant will need an income of at least $50, 000+.
Peer-to-peer lenders Such firms like Upstart and LendingClub help investors who provide funding for loans meet borrowers in need of such funds. It might offer more lending flexibility for the applicants with fair or good credit scores in this peer-to-peer model. LendingClub offers loans up to $50,000 but this company demands at least 660 credit score. Upstart takes into account education and career details, and it can allow lending to candidates with a credit score of 580 or above. If you were to receive 700, you’d meet the requirements for one kind of loan from Upstart.
They have prepared several tips that can increase the pprobabilityof getting the loan approval.
While having a 700 FICO score is sufficient to qualify for the $50,000 unsecured personal loan, it does not hurt to do certain things before hand. Some things you can do include Some things you can do include:
• Other factors that have a positive impact include; lloweringthe amount of revolving debt balances such as credit ccardsto lower the credit utilization ratio. • Do not apply for a new credit card or loan within the days leading up to your application for the personal loan. Hard inquiries are where lenders are contacted directly for a credit check, and having too many of them can alert lenders. • Request that they raise your credit limits from the current creditors. Higher credit limits result in lower credit utilization by increasing the available credit which impacts credit scores. • Go through the credit reports from the three credit bureaus to look for information that is negatively influencing your credit score. Dispute any inaccuracies. • Pay current debts through an automatic payment means to ensure an impeccable record of having paid all monthly bills on time. • This is important as some applications require inputs of tax returns, bank statements ,and proof of income among other documents.
The Bottom Line Taking a large sum of cash like $50,000 is not a joke Given that, the roles and responsibilities of the borrower should be clearly stated as a way of repaying the amount borrowed. Whereas a credit score of 700 does indicate the possibility of approval from several reliable lending institutions. Additional financial documents make it strong and more so if you have compelling reasons why you need this large loan and why you will be capable of repaying it. Do not choose the highest interest rate you can find and avoid qualifying for a lower rate with a small down payment to avoid paying a lot of in interest.
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