Discovering personal loans for $100,000 isn’t a task to be taken lightly. Whether you’re looking for the best debt consolidation loan or getting ready to finance the RV road trip of your dreams, several lenders offer loans in this range. However, average credit borrowers won’t get approved so easily. In order to qualify for some of the highest personal loans available, you’ll need above average credit plus the extra income to handle those monthly payments.
We’ve rounded up four solid lender picks for you to consider using our SimpleScore methodology that compares rates, loan amounts, customer satisfaction, support and fees.
The 4 best $100K personal loans of 2020
Best $100K personal loans at a glance
|SoFi||5.99% to 25.05%||2–7 years||None||4.6/5|
|LightStream||2.99%–20.49% w/out Autopay||24–144 months||None||4.8/5|
|Wells Fargo||5.99%–24.49%||12–84 months||Returned payment fee, $39 late fee||4/5|
|Credible||from 4.99%||12–84 months||Varies by lender||3.7/5|
*Rates accurate as of December, 2020
What is a personal loan?
Personal loans allow you to borrow a one-time sum from a lender. There are typically few restrictions on how you can use the money from a personal loan. They can be either secured or unsecured, but usually come with a fixed interest rate over a set period of time. This helps you budget because your monthly payments are the same and you know when you’ll be done paying off the loan, as long as you keep up with those payments. Some lenders charge fees, such as origination fees, late payment fees and early penalty fees.
[ Read: How Personal Loans Work ]
Where to get a $100,000 personal loan
You can find $100K loan options from a variety of sources, although not all lenders may offer loans for such a large amount.
Online lenders offer quick approval times and fast funding as well. You can frequently check your loan offer with only a soft pull on your credit report. If you find terms that you like, you can submit a full application, which includes a hard credit check. Both the application and loan agreement are filled out online, making it likely that you don’t have to speak to a loan officer in order to get approved. Always check the reputation of an online lender before submitting any personal application and, as with any lender, find out what fees are charged in addition to your interest rate.
Credit unions are nonprofit financial institutions that are actually owned by the members. This can keep interest rates and administrative fees low. However, in order to apply for a personal loan, you must become a member. Depending on the credit union, you may need to live or work in a specific locale or donate to a common charity. Credit unions range in size and services. While some still rely on paper applications, many credit unions are increasingly digitizing banking services.
There’s a lot of diversity when it comes to finding $100,000 personal loan options at banks. Large, national banks are likely to have fast approvals and funding through an online platform. Smaller, regional banks may be more hands-on with the application process. While it may take longer to get funded, the underwriting process is usually local at smaller banks, which could speed up the process. You may also find better interest rates if you already have an account open at a specific bank.
Pros and cons of a personal loan
- Fixed payments never change
- Easy online applications
- Flexible loan purpose
- Rates vary based on eligibility
- Fees vary by lender
- Increases your debt-to-income ratio
The cost to repay a $100K personal loan
When borrowing $100,000 it’s important to consider all of the costs involved to make sure you’re only considering the best personal loans. For example, a lender charging even a 1% origination fee could cost you $1,000.
Interest can also add up over time. Let’s take a look at a few different rates based on a five-year repayment term.
- With a 5% interest rate, your monthly payment will be $1,887 and you’ll pay a total of $13,227 in interest over the course of five years.
- With a 15% interest rate, your monthly payment goes up to $2,379. Your interest paid comes to $42,740.
- Finally, let’s look at a 35% interest rate on a $100k personal loan. Your monthly payment would be $3,549. At this point, your interest exceeds your actual loan amount, totaling $112,942.
[Read: APR vs. Interest Rates]
How long will it take to pay off a $100,000 personal loan?
Because of the size of a $100,000 loan, a longer repayment period may be beneficial in order to keep your monthly payments manageable. However, the longer it takes to pay off the loan, the more interest you’ll accrue. You may also be subject to a higher interest rate with a longer loan term, since lenders want to get their money back as quickly as possible.
Depending on the purpose of your loan funds — for example, financing a true emergency compared to buying a boat — you might only want to consider it if your income level allows you to comfortably make your payments over a shorter loan period. As we saw in the example above, a high-interest loan could easily double in size. In addition to considering your monthly payment, also look at the total interest you’ll pay over time, as well as any other fees involved with the loan.
What to consider when comparing loans
- Loan amounts: Not all lenders offer loans as high as $100,000. Checking the maximum loan amount is an easy way to narrow your list.
- Fees: In addition to reviewing interest rates, check for origination fees, prepayment penalties and any other costs involved with the loan.
- Eligibility requirements: Some lenders advertise minimum credit score requirements. Also check if there are any income requirements you’ll need to meet before you apply.
- Funding time: Looking for a fast turnaround time? Find out how fast approvals are made and when you can expect the funds to reach your bank account once you’ve signed the loan agreement.
We welcome your feedback on this article and would love to hear about your experience with the personal loans we recommend. Contact us at email@example.com with comments or questions.