How To Get a $70,000 Personal Loan

When it comes to major expenses, you may not always have the cash to cover them, especially if you need $70,000. Personal loan lenders like SoFi and LightStream offer $70,000 personal loans to qualified borrowers for purposes such as home renovations, debt consolidation, and family planning. 

But borrowing $70,000 is a big decision, and qualifying for a $70,000 loan often requires good credit. Learn how to compare loans of this size and decide whether an alternative makes more sense for your long-term goals.

Where to get a $70,000 personal loan

You can apply for a $70,000 loan through online lenders, banks, or credit unions.

Online lenders

Applying for a loan with an online lender is sometimes the easiest option. You can apply online without visiting a physical branch, and the application usually takes just a few minutes. Some lenders even have instant approval processes powered by AI underwriting.

Not many online lenders offer $70,000 personal loans, but some do. SoFi, LightStream, and Splash offer loans up to $100,000, and BHG Financial offers loans up to $200,000.

Finding an online lender with the interest rates, terms, and monthly payments you're looking for is important. "Online lenders publish their terms, fees, rates, and penalties plainly on their websites," said Stephen Kates, principal financial analyst for RetireGuide.com. “Reviewing these and comparing them to other lenders will give you a better understanding of which may fit your needs best.”

Learn More: Best Online Personal Loans

Banks

Some banks offer $70,000 personal loans, including Wells Fargo, USAA, and Fifth Third. But they may not be as accessible as $70,000 loans through online lenders. For example:

• Secured loans: Banks may be more likely to lend a customer $70,000 as a secured loan backed by an asset, like a savings or investment account. Lenders usually see secured loans as less risky to fund, which can justify the larger loan amount.
• Customer relationships: Banks sometimes offer personal loans or higher borrowing amounts to their customers only. For example, Wells Fargo offers personal loans of up to $100,000 to existing customers of at least 12 months. USAA also offers $100,000 personal loans, but you'll have to be eligible for membership to apply.

Credit unions

Credit unions offer many of the same services as banks, but they have a different purpose that could mean a better personal loan rate for you. "Banks need to produce a profit and credit unions are not for profit, so they are able to offer better rates," explained Jed Collins, founder of Money Vehicle.

The only potential stumbling blocks are (1) you have to be a member of the credit union and (2) not all credit unions offer $70,000 loans. Exceptions include Alliant and Navy Federal. (Navy Federal offers home improvement loans between $50,000 and $150,000 to borrowers with co-applicants.)

If you're a member of a credit union, find out if it offers the loan you need. You might see benefits like lower interest rates, personalized customer service, or better terms.

Learn More: Best Credit Unions for Personal Loans

What to consider when comparing $70,000 loans

Know what details to review when comparing personal loans for $70,000:

1. Annual percentage rates (APR)

APR includes a loan's interest rate and upfront fees, like an origination fee. APR is a more reliable indicator of total cost than interest rate alone.

A $70,000 loan is on the higher end of what most lenders offer, so lenders tend to view them as more risky. As a result, your APR may be higher. For example, LightStream's rate-checking tool estimated APRs of 7.99% to 9.89% for a $10,000 debt consolidation loan. For a $70,000 loan, the range of estimated APRs rose to 10.39% to 13.04%.

2. Fees

Lenders may charge fees on top of your loan, increasing how much you'll pay to borrow $70,000.

You might be charged an origination fee, especially if the lender see you as a more risky applicant. The fee is deducted upfront from the loan amount and, as noted, is expressed in the loan's APR. If you want to borrow $70,000 but are charged an origination fee, you'll need to borrow more than $70,000 to get the amount you need.

This fee can be as much as 12% of your loan amount, depending on the lender.

Another common fee is a late fee, which lenders only charge if you make late payments. Prepayment penalties are rare or nonexistent but would be charged if you pay off your loan early.

3. Repayment terms

Lenders generally offer repayment terms of one to seven years. Some lenders allow 10 years or more to pay off your loan for specific loan purposes, such as home improvements, or boat or RV purchases. While longer repayment terms mean lower monthly payments, they usually have higher interest rates.

4. Monthly payment

Ideally, a monthly payment shouldn't put undue strain on your budget. Make sure you can pay it on time and avoid falling behind on other bills, as late payments can hurt your credit and result in expensive late fees.

For a $70,000 loan, you can expect your monthly payment to be more than $1,000, even if you have excellent credit.

5. Total repayment costs

Personal loans have interest and, sometimes, fees. A personal loan calculator can help you estimate how much you'll pay by the end of your $70,000 loan term.

6. Loan purpose

You can use personal loans for a wide range of reasons, like paying off credit cards or financing a medical procedure. But not all lenders approve all generally allowable loan purposes. When you prequalify for a personal loan, you'll typically be prompted to choose from a dropdown list of loan purposes. If yours isn't on the list, contact the lender directly to make sure you're eligible.

Loan purpose can also change the interest rate you're approved for. For example, if we return to LightStream's handy rate estimate tool, we'll see that loans for preK-12 education loans have higher rates than home improvement loans, which have higher rates than used auto purchase loans.

Related: What Can't You Use a Personal Loan For

Cost to repay a $70,000 loan

It can help to visualize how your credit score and a loan's interest rate can affect your monthly payment and total borrowing costs. Compare the following payment and interest costs for a hypothetical $70,000 personal loan based on credit scores, estimated APRs, and term lengths:

Steps to getting a $70,000 loan

Here's how to apply for a $70,000 personal loan:

1. Check your credit score: Look at your most updated credit score to see how it might affect your loan options or the lenders you can apply with. Minimum credit score requirements vary by lender. You can see your credit report for free at AnnualCreditReport.com or check if your bank offers free credit monitoring tools.
2. Compare lenders: Research lenders offering $70,000 personal loans and compare their APRs, fees, and funding times. Checking online reviews can help you come to a decision. "The Consumer Financial Protection Bureau tracks fraud and consumer complaints against lenders and other financial institutions," says Kates, which could reveal potential issues with a lender.
3. Prequalify with multiple lenders: Compare estimated rates, terms, and payments for different loans by prequalifying with the lenders you're considering. Prequalifying with a soft credit inquiry doesn't affect your credit score, although a loan application — which often involves a hard credit inquiry — can knock as many as five points off your credit score for up to one year.

1. Assess monthly payments, term lengths, and total interest costs: Decide how much you can afford to pay on a loan each month based on your monthly budget. Find a comfortable balance between affordable monthly payments and the total borrowing costs over the life of the loan. Longer repayment terms translate to lower monthly payments but can also increase total interest costs.
2. Prepare your application: Gather the documents you'll need to apply, like your government-issued identification and pay stubs. Lenders need documentation to verify your identity and income. Submit your official application to your chosen lender.
3. Review loan terms and sign: Read through the loan offer a lender sends you after approval to understand the loan's terms and fees. Also, "determine what recourse options are available if there is a problem or complaint with the loan," says Kates. "Most financial institutions require consumers to agree to an arbitration clause that precludes the borrower from suing." Only sign for the loan if you agree to all its terms.
4. Receive funds: Wait for the lender to fund your loan. Most lenders use direct deposit and fund loans by the next business day, but it could take a few business days in some cases. Some lenders, such as LightStream and SoFi, offer same-day funding.

Learn More: How To Get a Personal Loan

Alternatives to a $70,000 personal loan

A $70,000 personal loan won't be the right choice for everyone. You might need to do a little digging into the reasons behind getting the loan to make sure it's your best option.

André Small, founder and certified financial planner at A Small Investment, LLC, suggests "starting with the end in mind and working back to the financial need" to help you decide whether a personal loan is the right move.

Small says to ask yourself, "What is the purpose of the personal loan and what benefit will it have to your overall financial situation? Does this loan allow you to improve your financial situation or is it a short-term solution?" If it's the latter, you may want to explore personal loan alternatives that could lower your costs and better align with your long-term goals.

Here are a few options:

• Home equity loan: Borrow against the equity you have in your home to qualify for potentially high borrowing amounts — usually up to 80% of your equity — and long repayment periods of up to 30 years. It can be a good alternative for a borrower who "is current on their mortgage, has robust equity in the home, and is seeking a much lower interest rate," says Kates.
• Home equity line of credit (HELOC): HELOCs give you a revolving line of credit based on the equity in your home. You can borrow up to your credit limit, pay down some or all of what you borrow, and continue borrowing from your HELOC throughout your draw period. A HELOC could be best if you plan to continue borrowing over time and want to keep your payments manageable by borrowing only what you need.
• Personal line of credit: Like a HELOC, a personal line of credit lets you access a credit limit when you need it. It's not backed by your home, but some banks and credit unions offer secured lines of credit using assets like stocks or a savings account. Pledging collateral could make you eligible for low interest rates and a higher credit limit, although you risk losing the collateral if you default.
• Apply with a cosigner: Some lenders let you apply with a cosigner, who assumes responsibility for payments if you stop making them, making you less risky to a lender. A well-qualified cosigner could help you get a more competitive rate.

Learn More: 9 Personal Loan Alternatives

Read More:

• Should You Get a Personal Loan?
• How Much of a Personal Loan Can I Get?
• The Best Ways to Borrow Money
• Best Personal Loans for Bad Credit
• Best Personal Loans for Fair Credit
• Best Personal Loans for Good Credit
• Best Personal Loans for Excellent Credit