How To Get A $35,000 Personal Loan (2024)

Many lenders offer $35,000 personal loans, and a loan of that size could help meet your financial needs, like consolidating credit card debt, financing wedding costs or paying out-of-pocket surgery expenses.

When applying for a $35,000 loan, lenders will consider your income and credit to determine your ability to repay the loan, but there are other qualifications and steps you’ll want to keep in mind. Here’s what you need to know about $35,000 loans and how to apply and find the best personal loan for you.

1. Consider Qualification Requirements

Each lender has its own qualification requirements for personal loans. However, three key factors affect what you can borrow:

• Income. You need to have a history of a steady income source to show you’re able to repay your loan, especially when you’re borrowing a large amount. Lenders may consider income from a full-time or part-time job, alimony, child support, disability income, rental income and more to make an approval decision.
• Credit. The odds of getting approved for a $35,000 loan increases with a higher credit score. In general, aim for a credit score of 670 or higher when applying for a personal loan. A higher credit score could help you qualify for a lower interest rate.
• Debt-to-income ratio. Your debt-to-income (DTI) ratio is the percentage of your monthly income that goes toward debt payments. In general, lenders prefer a DTI of 36% or less. Having a low DTI may increase the loan amount you can qualify for since it shows you have the financial resources to manage higher payments.

2. Prequalify With Multiple Lenders

After reviewing loan eligibility requirements, the next step is prequalifying to see the rates and terms you may be eligible for. Many online lenders, banks and credit unions allow you to prequalify directly on their website.

Alternatively, you can prequalify for loans through an online loan marketplace. Using a loan marketplace can expedite the process by showing you multiple offers after submitting one form.

Prequalifying for personal loans doesn’t usually involve a hard credit check, so it won’t affect your credit score. However, offers are only preliminary, meaning you have to do a full application and undergo verification before you can obtain the loan. Prequalification forms usually ask you for information like how much you need to borrow, your income and your credit score range.

3. Compare Your Prequalified Offers

Once you have a few prequalified offers, compare them using the following factors to determine which $35,000 loan best fits your needs:

• Annual percentage rate. The annual percentage rate (APR) shows how much it’ll cost you to borrow on an annual basis, including interest and fees. The APRs will show you which loan options cost the least.
• Fees. Lenders might charge origination fees or other charges that you’ll need to factor into the cost equation. If the lender charges a fee on a personal loan, it’s generally 1% to 8%. The fees can be based on your credit and how much you’re borrowing.
• Repayment terms. Your repayment term—or the length of time you have to repay your loan—will affect your monthly payment. The longer your loan term, the lower your monthly payment will be, but you’ll likely pay more interest because you’ll be paying down the loan for a longer period. Shorter loan terms can have higher payments, but you’ll pay less in interest and the debt will be paid off sooner, often making them a better option. What works for you will depend on your budget and needs.
• Funding speed. The timeline for the application and approval can vary by lender. Comparing processing times can help you find a lender with an approval speed that fits your needs.

4. Complete and Submit Your Application

Once you choose a loan offer, you’ll need to complete the full loan application. This process usually involves providing documentation to confirm your identity along with pay stubs or tax documents to confirm your income.

The lender will also likely do a hard credit inquiry at this point to review your credit, and this credit inquiry can show up on your credit report and affect your score. Once approved, you’ll do a final review of the loan terms and sign off on loan documents. Loan funds may be disbursed directly into the bank account of your choosing or your lender will mail a paper check to you.

5. Manage and Repay Your Loan

Your lender will tell you when you’ll need to start making loan payments, and in most cases, you’ll have an online account to review your balance and make payments.

Depending on which credit bureaus your lender reports to, the loan and payment records will show up on your credit report. Paying bills on time can positively impact your credit score, while paying late can hurt your credit. Signing up for autopay could help you avoid missing a payment and incurring late fees.

How To Get a $35,000 Loan With Bad Credit

Having bad credit means you’re a higher-risk borrower, but that doesn’t mean you can’t get a personal loan with bad credit.

Applying for a loan with a co-signer or co-borrower is one way to overcome the bad credit hurdle. When you apply with another person, their income and credit are factored into the application, and their signature on the loan means they personally guarantee repayment. This extra assurance for the lender can help you get approved, and in some cases, with a lower interest rate.

Looking into secured personal loans may be another way to borrow a large sum with-less-than perfect credit. Some lenders offer personal loans backed by money in a savings account, called passbook loans, and other collateral. That security could make them easier to qualify for, but keep in mind: Failing to repay your loan means the lender could take possession of your collateral.

Where To Get a $35,000 Loan

Online lenders, banks and credit unions may offer $35,000 loans. Below are features of loans offered by each category of lender:

• Brick-and-mortar banks may have higher credit and income requirements for loans than credit unions and online lenders but they may also offer lower interest rates and no origination fees. If you have good credit, getting approved for a bank loan could be a low-cost way to borrow.
• Credit unions can be another good option because they may provide lower-cost loans to members. Some credit unions have flexible fields of membership that aren’t limited to people who live in a certain area, so you could apply to join online and then get a loan.
• Online lenders are known for speedy application and funding processes. They also often have flexible borrower qualification criteria and competitive rates.

Long-Term Costs of a $35,000 Loan

The long-term cost of a $35,000 personal loan depends on your interest rate and loan term. Below are sample monthly payments and the total interest paid for a $35,000 loan.

Plugging sample loan terms, interest rates and loan amounts into a personal loan calculator can help you estimate monthly payments and total interest costs for loans before you borrow.