How Much of a Personal Loan Can I Get?

Personal loans typically range from under $1,000 to $100,000. The amount you're approved for will depend on the lender as well as your credit score and financial stability.

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.

Most personal loans are unsecured, meaning you don't need any collateral to obtain one. A secured personal loan must have collateral, such as a car, house or other asset, in case of default.

Factors That Determine Your Maximum Loan Amount

Several factors determine the amount of a personal loan, including:

Credit Score Requirements

FICO credit scores range from 350-850 and are based on five different categories:

• Your payment history (35%)

• The amounts you owe (30%)

• Your credit history length (15%)

• New credit you've been approved for (10%)

• What types of credit you have (10%)

Lenders have their own criteria, which includes considering your credit score. A good credit score is between 670 and 739; however, higher scores, such as "very good" (740 to 799) to "excellent" credit scores (800 to 850), could qualify you for higher loan limits and better rates.

Income and Employment Stability

Lenders have different minimum income requirements for personal loans, which they may or may not make public. For example, one lender might require at least $30,000 in income, while another might require $45,000. Lenders will also want to confirm your current employment status and how long you've held your job to gauge whether your income is stable enough to cover monthly payments.

Another personal loan requirement is a satisfactory debt-to-income ratio (DTI). This is how much you owe in relation to your gross income and is used by lenders to help assess how much of a lending risk you pose. Lender standards vary, but most prefer a DTI that's lower than 35% to 36%.

👉 How To Get a Loan with a High Debt-to-Income Ratio

Maximum Loan Limits Set by Lenders

The maximum personal loan amount you're likely to find is $100,000. However, most lenders set the limit much lower -- from $20,000 to $50,000. According to the Code of Federal Regulations, banks cannot lend more than 25% of their capital and surplus to a single borrower.

Here are the minimums and maximums for personal loans from different lenders, as well as typical interest rates.

How To Calculate the Loan Amount You Qualify For

Before you borrow money, you may want to know how much you qualify for -- and how much you can afford. Here are a couple of options to find out.

Using Lender-Specific Loan Calculators

Use a lender's personal loan calculator to find out what amount you might qualify for and the estimated payments.

Arvest offers a personal loan calculator that helps you calculate how much you can afford to borrow. Enter your desired payment amount, number of monthly payments and interest rate to find out.

Wells Fargo offers a personal loan rate and payment calculator. All you have to do is enter your state of residence, requested loan amount, preferred term and credit rating to find out your estimated monthly payment and APR.

Alternatively, you can use MoneyLion's loan calculator, which factors in principal, rate, and term to instantly calculate estimated interest payments.

Getting Pre-Qualified vs. Pre-Approved

Some lenders allow you to become pre-qualified for a personal loan. This usually involves sharing some basic information with the lender, such as your yearly income, house or rent payments and savings balances. As part of the process, the may lender initiate a soft inquiry to check your credit and prequalify you for the loan. Being prequalified is not a guarantee that you'll be approved for a loan, however.

Lenders might also send out preapprovals for personal loans, which also are not guaranteed. Getting a preapproval means your information was included on a credit reporting agency's list of people who meet certain lenders' approval criteria, and those lenders who view the list may send you a preapproval as a result.

However, if your income or credit history have changed by the time you apply, you many not be approved for a loan.

Strategies To Increase Your Loan Eligibility

If you're worried about whether you'll be approved for a personal loan, here are some suggestions for increasing your chances.

Improving Your Credit Score

If your credit score is below 670, which is the minimum "good" credit score, or it's above that, but you want to increase it in the hopes of higher loan limits and better rates, here are some ways to improve your credit score:

• Make debt payments on time, every month

• Pay down your credit balances

• Review your credit reports from all three bureaus and dispute any information that's incorrect

• Limit new credit applications

• Avoid closing old accounts, because they can change the length of your credit history

• Become an authorized user on the credit card account of someone with a very good credit score and history

Reducing Your Debt-to-Income Ratio

How much debt you're carrying in relation to your income is a significant factor in whether or not you'll be approved for a loan. To decrease your DTI, pay down your existing credit balances without taking on new debt.

Some people find the snowball or avalanche methods helpful. Both of these methods involve organizing your debts in a certain order: For the snowball method, you'll arrange them from the smallest to largest balance, while the avalanche method arranges your debts from highest to lowest interest rate. Then, you make the minimum payments on all your debts but put extra money into the first one -- either the smallest balance or the highest interest rate.

Once the first debt is paid off, you take the monthly payment you were making on that debt and add it to the payment you were making on the next in line, and so on.

Offering Collateral for Secured Personal Loans

Most lenders offer unsecured personal loans, which means you don't need collateral. However, if you are struggling to get approved, you may want to consider a secured personal loan. Most secured personal loans are backed by a savings account but can also be secured by other assets.

Risks of Borrowing a Higher Loan Amount

Although you may qualify for a higher loan amount, that doesn't mean you should take advantage of it. Here's why.

Higher Monthly Payments and Affordability

The more money you borrow, the higher your monthly payments will be. Although lenders often do a good job of only qualifying borrowers for loans they can afford, down the road, you may take on more debt, which could make the higher monthly payments a struggle to pay.

Total Interest Paid Over Time

Taking on a larger loan generally means you'll pay for it over a longer term, and a longer term means more total interest paid over time.

Additionally, personal loan rates are typically fixed, which means that even if the bank's interest rate decreases, the interest rate on your loan won't unless you refinance, which will extend the length of your loan and the amount of total interest you'll pay. If you do decide to refinance, ensure that any fees and interest you'll pay is less than your original loan.

Government Regulations and Borrowing Protections

Lenders offering personal loans must follow federal fair lending rules that protect borrowers from discrimination. Under the Equal Credit Opportunity Act (ECOA), lenders can't base decisions on your race, sex, age, national origin, marital status or source of income. A policy that applies to all applicants can still violate the law if it unfairly affects people under the protected groups of the ECOA.

Lenders are also expected to use clear, consistent standards when making decisions.

Additionally, to avoid predatory lending, watch for these red flags:

• Excessive fees and interest charges that can trap you in debt

• Pressure to sign loan documents immediately

• Lack of clear information about the loan terms

• Claims that you'll be approved no matter what

• Being asked to sign blank or incomplete forms.

An additional protection for borrowers is the Truth in Lending Act, which requires lenders to clearly show the cost of a personal loan to borrowers before they accept it. That includes the interest rate, total amount to repay and all fees. This helps borrowers understand what they're agreeing to and makes it easier to compare loan offers.

FAQs

What is the maximum personal loan amount I can get?

According to available information from lenders, the maximum personal loan amount is typically $100,000, but some lenders have lower limits of $50,000 or less.

How does my credit score impact the loan amount I qualify for?

Lenders have their own criteria regarding credit scores and loan amounts. However, a "good" credit score is 670-739, "very good" is 740-799 and "excellent" is 800-850. A higher credit score could qualify you for higher loan limits and better rates.

Can I get a personal loan with a high debt-to-income ratio?

Lenders generally prefer a DTI that's lower than 35% to 36%.

How can I increase my loan amount eligibility?

Taking steps to improve your credit score, including decreasing your DTI, can increase your loan amount eligibility.

Do government regulations affect personal loan limits?

Yes, but it's unlikely to affect most personal loan borrowers. According to the Code of Federal Regulations, banks cannot lend more than 25% of their capital and surplus to a single borrower.

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Sources

FDIC. Fair lending laws and regulations. https://www.fdic.gov/resources/supervision-and-examinations/consumer-compliance-examination-manual/documents/4/iv-1-1.pdf

ABA. Avoid abusive and illegal lending. https://www.aba.com/advocacy/community-programs/consumer-resources/protect-your-money/avoid-predatory-lending-scams

Office of the comptroller of the currency. Truth in lending act. https://www.occ.treas.gov/publications-and-resources/publications/bankwise/files/pub-truth-in-lending-act.pdf