How Much Can You Borrow With a Personal Loan? Quick Guide

There are many different lenders that offer personal loans, including banks, credit unions and peer-to-peer online lenders. The minimum and maximum borrowing limits are set by each lender, and the amount of your personal loan depends on your creditworthiness.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

Key Takeaways

• How much you can borrow with a personal loan typically ranges from $2,000 to $50,000, though borrowers with strong credit may qualify for $100,000 or more, depending on the lender.

• Your credit score is the single biggest factor lenders use to set your limit — a score of 740 or higher generally unlocks the largest amounts and the lowest APRs, while a score below 580 can restrict you to $5,000 or less.

• Keeping your debt-to-income ratio (DTI) at 36% or below signals financial strength to lenders; you can improve it by paying down existing balances or increasing your income.

• To qualify for a larger loan, work on raising your credit score, reducing your existing debt, and make all payments on time before you apply.

• If your offer falls short, alternatives like a 0% APR credit card promotion, a home equity loan, or adding a co-signer are worth exploring to bridge the gap.

Summary generated by AI, verified by MoneyLion editors

Personal Loan Amounts by Lender

Finding the right lender depends on how much money you need for your personal loan. Here’s a comparison table to help you decide:

What Determines Your Personal Loan Limit

Lenders look at these factors to determine how much of a personal loan you'll qualify for.

Credit Score

Your credit score determines your eligibility and your loan amount. Here’s a rundown on credit scores and how they can impact loan limits and annual percentage rates (APRs):

DTI Ratio

Lenders want to see how much of your income is already dedicated to other debts. To determine your DTI ratio, the lender will use the following formula:

• DTI = gross monthly income ÷ by total monthly debt payments × 100

DTI Thresholds

• 36% or lower: Strong

• 37% to 43%: Borderline

• 43%: Approval becomes difficult

Income and Employment Stability

Lenders are interested in how much you make, but more importantly, they want to know how long you’ve been employed. Most lenders like to see at least two years of consistent employment in the same field.

Gig or freelance workers may have to jump through more hoops to qualify since their income comes from multiple sources.

Existing Debt

Lenders look at the type of debt you have, even if your DTI is low, as part of the personal loan requirements they use to assess risk.

For example, if you’re carrying several credit card balances with high interest rates, this may lower your loan limit. However, if you have installment loans, such as a car loan, with a regular, on-time payment history, this may increase your loan limit.

Loan Amounts by Borrower Profile

Here’s how loan amounts can vary based on different borrower profiles:

How To Qualify for a Larger Loan

If you're not getting approved for the amount of money you need, you can:

• Reduce your debt: If you can lower your DTI ratio by paying off a significant amount of your debt, you may qualify for better loan terms.

• Increase your income: Doing so will also help lower your DTI ratio. You could do this by getting a side gig.

• Raise your credit score: Make all your payments on time. You can also reduce your credit utilization, which is how much of your available credit you've used.

Alternatives if You Need More Than You’re Approved For

If your loan offer falls short, you may want to explore these alternatives:

• 0% APR credit card promotions: You can finance an expense and save money on interest by getting a credit card with an intro APR promotion. Some promotions last up to 24 months.

• Home equity loan: This is a secured loan that uses your home as collateral.

• Credit union loans: If you belong to a credit union, you can apply for a loan, typically up to $2,000. The interest rate may be lower than that of other options, like payday loans.

• Add a co-signer: Adding a co-signer may help you get approved for a higher amount.

Personal Loan Borrowing FAQs

What credit score do I need for a $50,000 loan?

You’ll typically need a credit score of 740 or more to get a $50,000 loan. You could get the same amount with a lower credit score, but it may mean a higher interest rate.

What’s the maximum personal loan amount?

Many lenders will offer between $50,000 to $100,000. Some higher earners could qualify for even more.

How do lenders decide my loan limit?

To determine your loan limit, lenders will review the following information: credit score, credit history, income, DTI ratio, payment history and existing debts.

Can I get a large loan with high DTI?

With a high DTI, you could be denied a loan or receive a lesser amount. Lenders typically look for a DTI of around 36%.

Does pre-qualification affect my credit?

No, pre-qualification typically doesn’t affect your credit.

Key Terms

• Personal loan: An unsecured installment loan that lets you borrow a fixed amount and repay it in set monthly payments, typically over two to seven years.

• Credit score: A three-digit number ranging from 300 to 850 that reflects your creditworthiness; lenders use it to decide whether to approve your application and what loan amount and rate to offer.

• Debt-to-income ratio (DTI): The percentage of your gross monthly income that goes toward monthly debt payments; most lenders prefer a DTI of 36% or lower when evaluating a loan application.

• Annual percentage rate (APR): The yearly cost of borrowing expressed as a percentage, including the interest rate and any lender fees; it's the most useful figure for comparing loan offers side by side.

• Pre-qualification: A preliminary review of your finances — typically using a soft credit pull — that estimates how much you may be able to borrow without affecting your credit score.

• Hard inquiry: A formal credit check that occurs when you submit a loan application; it may temporarily lower your credit score by a few points.

• Co-signer: A person who agrees to share legal responsibility for repaying a loan and whose creditworthiness can help the primary borrower qualify for a higher amount or better terms.

Sources:

• CFPB: What Is a Debt-to-Income Ratio?

• CFPB: What Is the Difference Between a Loan Interest Rate and the APR?

• myFICO: What Is a Credit Score?

• Federal Reserve: Consumer Credit (G.19)

Summary generated by AI, verified by MoneyLion editors

Jasmin Baron, CCC™, contributed to editing this article.

Photo Credit: PeopleImages / Getty Images / iStockphoto