At a Glance
Personal loans have grown in popularity in recent years to become the #1 form of consumer lending in the U.S.1 Consumers use personal loans for a variety of reasons, including emergencies, home renovations, or as part of a broader debt paydown strategy. The lower interest rates of personal loans can make them a smart choice when compared to credit cards.
When someone applies for a personal loan, one of the most commonly asked questions is: “How much personal loan can I get?” If you have a specific goal in mind, you’ll likely know how much money you’d like for your loan. But if you have several goals or are uncertain about the cost of your project, it’s nice to understand the maximum amount you may be eligible to receive.
In this article, you’ll learn:
What factors are considered in eligibility for a personal loan?
Since personal loans are unsecured, they are much riskier for lenders than a mortgage or auto loan, where your home or vehicle acts as collateral. Therefore, lenders need to make sure you can pay back what you owe without the threat of revoking collateral.
The primary factors most lenders consider are your credit score and income. Lenders will also assess the stability of your employment and the same information for any potential co-borrowers. As all lenders are different, you’ll need to work with each individual lender to understand requirements before applying.
What is the most money you can get for a personal loan?
While the average debt of a personal loan in the U.S. is around $8,000, lenders have been known to offer personal loans up to $100,000 for the most highly qualified borrowers. These are typically borrowers whose credit score falls into the “very good” or “excellent” range, which means a FICO score of 740 or above.
To determine the highest amount you’re eligible to receive for a future loan, it’s best to shop around and seek out pre-approval. For most lenders, the pre-approval process can be done quickly online. It will offer insight into your eligibility, potential personal loan amount, interest rate, and payback period. Be sure to check out a variety of companies as some online-only lenders are more likely to offer large loans than their brick and mortar counterparts.
Keep in mind that, while the limit for a single personal loan caps around $100,000, you can always get multiple loans through the same lender or across various lenders. If your credit score and income allow it, this could be a viable option to pursue if you need more than you can get from a single personal loan.
How can I increase my chances of getting approved for a higher personal loan?
As mentioned above, credit score and income stability are often determining factors in how much you can get approved for a personal loan. You can monitor your credit report, pay bills on time, and work to decrease your debt-to-income ratio to increase your chances of being approved for a higher loan amount.
The amount of personal loan you can get is directly related to your riskiness as a borrower and your proven ability to repay debt. Assuming you have a strong credit score and stable income, you will likely be able to find the right lender that can offer you the amount of money you need.