If you need to borrow a large amount of money, you may be considering a personal loan. Some personal loan lenders allow you to borrow as much as $50,000, or even $100,000 so you can finance very large purchases that it generally wouldn't make sense to put on a credit card.
Before you move forward with taking out a large personal loan, though, you'll want to get a clear idea of what it will cost you. Specifically, you should look at both monthly payment and total repayment costs.
Here's what a $50,000 loan would cost you each month
The costs of a $50,000 loan are shown in the table below. Both your monthly payment and total interest costs change depending on how long you take to repay your loan and what interest rate you are offered, since rates do vary from one lender to another.
The table shows the payments with three different interest rates, including 12.35% (the average rate on a personal loan as of November 2023).
| 8.00% | 12.35% | 15.00% |
|---|
| Two-Year Repayment | $2,261.36/month, $4,272.75 in interest over time | $2,361.85/month, $6,684.50 in interest over time | $2,424.33/month, $8,183.98 in interest over time |
|---|
| Seven-Year Repayment | $779.31/month, $15,462.10 in interest over time | $892.02/month, $24,929.90 in interest over time | $964.84/month, $31,046.37 in interest over time |
|---|
| 10-Year Repayment | $606.64/month, $22,796.56 in interest over time | $727.51/month, $37,300.90 in interest over time | $806.67/month, $46,800.97 in interest over time |
|---|
Data source: Author's calculations.
Should you take out a $50,000 loan?
As you can see, the monthly payments on a $50,000 personal loan are very substantial. Even if you take 10 years to repay your debt, you'll be sending hundreds of dollars a month to a lender. You can't use it to invest for retirement or do anything else (like covering your living expenses). So you don't want to make the decision lightly.
It's not surprising the payments and interest costs are so high, since $50,000 is a lot of money. If you are considering borrowing that much, the first big question to ask yourself is whether you really need such a large sum. Could you save a little bit longer to cover more of the costs in cash, or scale down the scope of whatever you are borrowing for?
You'll also want to consider whether a personal loan is the right type of loan. If you're borrowing for a car, for example, it's worth comparing the rate on personal loans to the rate on car loans. Car loans may have a lower interest rate because they are secured (the car acts as collateral to guarantee repayment). If you're doing home improvements, a home equity loan could be a better option. The interest may be deductible if you itemize on your taxes and are improving the home that is securing the loan.
Finally, ask yourself if you are absolutely sure of the following:
- You can afford the loan now and in the future without putting off retirement savings or anything else.
- You are comfortable with the total costs, including interest -- especially since you could end up paying almost double for whatever you are buying if you get a high interest rate and take a long time to repay your loan.
- Whatever you are borrowing for is going to improve your situation substantially for a long time. For example, a home improvement project may be worth it since it will increase your home's value and make your property more livable -- but what about a wedding, which will be over in a day?
If you can't afford the loan, aren't comfortable with total costs, and feel as if the loan will be worth it over the long haul, do not even consider borrowing $50,000. Save up for whatever you're buying -- or scale down your expectations -- instead.
Our picks for the best personal loans
Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing our picks for the best personal loans.
FAQs
The monthly payment on a $50,000 loan ranges from $683 to $5,023, depending on the APR and how long the loan lasts. For example, if you take out a $50,000 loan for one year with an APR of 36%, your monthly payment will be $5,023.
What would the monthly payment be on a $50,000 personal loan? ›
The monthly payment on a $50,000 loan ranges from $683 to $5,023, depending on the APR and how long the loan lasts. For example, if you take out a $50,000 loan for one year with an APR of 36%, your monthly payment will be $5,023.
What credit score is needed for a 50k loan? ›
You'll have the best chance of getting approved with an excellent credit score, such as one above 800. You may struggle to find a lender that will approve a $50,000 loan for folks with poor or bad credit. A "poor" credit score is considered 580 or under. Most lenders require at least a "fair" score of around 670.
How much is the monthly payment on a $40,000 personal loan? ›
The monthly payment on a $40,000 loan ranges from $547 to $4,018, depending on the APR and how long the loan lasts. For example, if you take out a $40,000 loan for one year with an APR of 36%, your monthly payment will be$4,018.
What is the monthly payment on a $5 000 personal loan? ›
What is the monthly payment on a $5,000 personal loan?
| Payoff period | APR | Monthly payment |
|---|
| 2 years | 15% | $242 |
| 3 years | 15% | $173 |
| 4 years | 15% | $139 |
| 5 years | 15% | $119 |
3 more rowsWhile some lenders might be willing to lend you $50,000 if you have bad credit, you'll likely pay a much higher interest rate to offset the lender's risk. You could also consider secured personal loans, which require you to use an item of value (such as your car) as collateral.
What credit score do you need for a personal loan? ›
Many give preference to borrowers with good or excellent credit scores (690 and above), but some lenders accept borrowers with bad credit (a score below 630). The typical minimum credit score to qualify for a personal loan is 560 to 660, according to lenders surveyed by NerdWallet.
Can I get a $50,000 loan with a 700 credit score? ›
With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
Is it hard to get a personal loan? ›
Bottom line. It's not difficult to apply for a personal loan. The process is typically simple and quick, and depending on the lender, you can get the funds fast.
How much can I borrow with a 780 credit score? ›
You can borrow over $100,000 with a 780 credit score if you get a mortgage or a home equity loan. Keep in mind, the exact amount of money you will get depends on other factors in addition to your credit score, such as your income, your employment status and even the lender.
If you take a loan for five years and your interest rate is 4%, your monthly payment for a $40,000 loan will be $737. Remember that the longer the loan period, the more money you will overpay to the bank.
How much is a $20,000 loan for 5 years? ›
A $20,000 loan at 5% for 60 months (5 years) will cost you a total of $22,645.48, whereas the same loan at 3% will cost you $21,562.43. That's a savings of $1,083.05. That same wise shopper will look not only at the interest rate but also the length of the loan.
How to get a loan for $50,000? ›
Lenders have varying criteria for borrowers seeking a $50,000 loan, but in general, the process is similar to smaller loans. Borrowers will need to provide proof of employment or income, a favorable debt-to-income ratio and a credit score and history that meets the lender's minimum qualifications.
How much is the monthly payment for a 60K personal loan? ›
For example, for a $60K personal loan, for a term of 30-years with an annual percentage rate of 6% , the estimated monthly payment would be about $360, while a 15-year loan at an annual percentage rate of 3.5% would have an estimated monthly payment of about $429.
What credit score do I need for a $5000 loan? ›
Requirements for a $5,000 loan vary by lender. But in general, you should have at least Fair credit, which is a score of 580 or above. Lenders may also look at other factors, such as your income and your debt-to-income ratio (DTI), during the application process.
What is a good credit score? ›
A good credit score is generally 690 to 719 on the 300-850 scale commonly used for FICO scores and VantageScores. Amanda Barroso is a personal finance writer who joined NerdWallet in 2021, covering credit scoring.
How long does it take to pay off a $50,000 loan? ›
It will take 47 months to pay off $50,000 with payments of $1,500 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.
How hard is it to get a $30,000 personal loan? ›
In general, lenders extend $30,000 loans to borrowers with good to excellent credit, which is typically 670 and higher. But there may be lenders who lend to borrowers with bad credit. If you're having difficulty qualifying, you may consider getting a cosigner or co-borrower to help you get approved for the loan.
How much is a $10,000 loan for 5 years? ›
Here's the monthly payment if you borrow $10,000
| Interest Rate | 2-Year Repayment Timeline | 5-Year Repayment Timeline |
|---|
| 11.48% | $468 per month, $1,239.44 in total interest | $220 per month, $3,189.54 in total interest |
| 15.00% | $485 per month, $1,636.80 in total interest | $238 per month, $4,273.96 in total interest |
1 more rowAug 22, 2023
To increase your chance of qualifying for a $10,000 unsecured loan, you should have a credit score of 600 or higher. Some lenders start their minimum credit score requirements at 600, however, there are some lenders that require a credit score in the high 600s or low 700s.
