How to Get a $75,000 Personal Loan

Whether you want to finance your dream car, your dream vacation, or a major home renovation, a $75,000 personal loan could be an option. But you'll need to have the income and a good-enough credit score to qualify. We'll cover where you can find a $75,000 personal loan, how to get one, and how to improve your application and lower your rate.

Where to get a $75,000 personal loan

Small and mid-sized personal loans are available from many sources; banks, credit unions, and online lenders often offer loans up to $50,000. For a $75,000 personal loan, however, the list of lenders grows smaller.

Online lenders

All of these lenders offer $75,000 loans. LightStream has the lowest rates, no fees, same-day funding, and the longest available repayment terms. BHG offers loan amounts up to $200,000 and doesn't run a hard credit inquiry when you apply (meaning, unlike most lenders, a full application won't hurt your credit). Note that you'll need to visit Splash's website directly to apply for a $75,000 loan.

Banks

Wells Fargo and USAA are two banks that offer $75,000 loans. However, Wells Fargo only offers personal loans to existing customers (who've had an open account for at least 12 months) and USAA has membership requirements you'll need to meet to be eligible.

Check with your bank to see if a $75,000 personal loan is available.

Credit unions

Credit unions rarely offer $75,000 personal loans. Exceptions include Alliant Credit Union (up to $100,000) and PAHO/WHO Federal Credit Union (up to $75,000). You may also be able to get a $75,000 home improvement loan from Navy Federal if you apply with a co-applicant.

Although credit unions typically require membership before applying, some credit unions may allow you to apply before joining. If approved, you'd need to become a member before the loan funds.

What to consider when comparing $75,000 loans

Before accepting a loan offer, review the interest rates, repayment terms, and fees, if any, to make sure they meet your requirements.

Interest rates

The cost of borrowing money is always a concern, but it becomes even more important with a loan as large as $75,000. Interest rates on personal loans and other forms of credit are usually expressed as an annual percentage rate (APR). APR accounts for not only interest but also any upfront fees, such as origination fees. The APR reflects the total cost of a loan more accurately than the interest rate alone.

Personal loan APRs can range from around 7% to 36%, based primarily on your credit score as well as your current debt, income, the length of the repayment term, and the lender.

With a higher FICO score, you can expect a lower interest rate. Credible data illustrates the relationship between credit scores and personal loan interest rates on three- and five-year loans:

Fees

Some personal loans charge an upfront fee, called an origination fee, which is typically deducted from the loan proceeds. For example, if you're charged a 5% origination fee on a $75,000 loan, the fee ($3,750) would be deducted from the loan amount, so you'd receive $71,250 instead of $75,000. To get exactly $75,000, you would have to increase the loan amount on your application to $78,947.

Since an origination fee is a tool to offset the lender's risk, a high credit score and/or a large income could mean you pay a lower origination fee, or no fee at all. Some lenders don't charge origination fees, including Discover and LightStream.

Personal loan fees can also include late fees and fees for non-sufficient funds (NSF). Prepayment penalties are rarely (if ever) charged on personal loans.

Repayment terms

The length of time you have to repay a personal loan can range from one to seven years or longer, depending on the lender, the size of the loan, loan purpose, and other factors. BHG offers repayment terms as long as 10 years, while LightStream offers repayment terms up to 20 years for home improvement loans.

Shorter-term loans tend to have lower interest rates and lower overall costs. This is also because you pay interest for a shorter period compared to a longer-term loan. Your monthly payments, however, will be higher.

Monthly payment

The size of your monthly payment depends on several factors, including the loan amount, the interest rate, and the repayment term. A longer term typically means lower monthly payments but more interest paid over the life of your loan.

Loan purpose

During the prequalification and application processes, you generally have to specify the purpose of the loan. Lenders use this information when deciding loan amounts and rates you might qualify for. Higher loan amounts may be reserved for specific purposes, such as home improvement.

Commonly approved purposes for $75,000 personal loans include:

• Debt consolidation
• Home improvement loans
• Credit card refinancing
• Major purchases

As you compare lenders, check their websites or ask a loan officer to make sure they offer loans for the purpose you have in mind.

How much does a $75,000 loan cost?

How much your loan costs depends on the amount you borrow, plus the APR and the repayment term. A larger loan amount, a longer loan term, and a higher interest rate all increase the cost of your loan.

For example, let's say you qualify for a five-year, $75,000 personal loan at a very low rate of 7% APR. You would have a monthly payment of $1,485 and pay $14,105 in interest over the life of the loan.

To qualify for a 7% APR, you would most likely need a credit score of 800 or above (exceptional). If your credit score were in the good range or even the very good range, the APR, monthly payments, and total interest costs would likely be higher, perhaps much higher. Note that on a $75,000 loan, interest costs could increase prohibitively if you can't get a low rate.

Steps to get a $75,000 loan

1. Check your credit report and score: You can get your credit report for free from AnnualCreditReport.com — dispute any errors with the appropriate bureau. Check with your bank or credit card company for free access to your FICO score. Knowing your credit score can give you an idea of the interest rate you might qualify for and, since many lenders have minimum credit score requirements, which lenders to apply with.
2. Calculate estimated monthly payments: Prequalification results provide an estimate of monthly payments along with potential interest rates and terms. You can also use a personal loan calculator to simulate different repayment terms, interest costs, and monthly payments.
3. Research and compare lenders: Start by eliminating lenders that don't offer $75,000 personal loans. If they do, make sure that approved loan purposes include the one you need.
4. Prequalify with multiple lenders: When you have a list of candidates, prequalify with each individually or on a loan marketplace to prequalify with multiple at once. Prequalification won't hurt your credit, but most full loan applications involve a hard credit inquiry, which could lower your credit score by up to five points for up to one year. (Note: BHG doesn't run a hard credit check when you apply for a loan, but does if you accept it.)
5. Gather documentation: Lenders are likely to ask for information and documents including a government-issued ID, proof of income (such as pay stubs or W-2s), and your Social Security number.
6. Select a lender and apply: Once you've compared prequalified rates and terms, apply with the lender that best suits your needs. With an online lender, it could take only minutes to see if you're approved.
7. Review terms, sign, and begin repayment: Depending on the lender, your loan funds could be available as soon as the same day you accept the offer.

How to improve your $75,000 loan application

If you can't qualify for a $75,000 loan or aren't satisfied with the rates you're offered, take steps to improve your application. Here are a few pointers:

• Improve your credit score, quickly: Ask for credit limit increases on your existing cards to reduce your credit utilization ratio. Credit utilization contributes up to 30% to your FICO score. Another way to do this is to become an authorized user on the credit card of someone else with a low utilization ratio. Their account will appear on your credit report, so it's important that they make on-time payments and carry a low or no balance. It's also best if you don't use the card.
• Apply with a joint applicant: Many lenders allow joint personal loan applications, which means you apply with another person (often a partner or spouse) who shares in the proceeds and responsibility for the loan. If your co-applicant has good credit and good income, it's likely you could qualify for a lower interest rate or better terms.

Alternatives to a $75,000 personal loan

If you've had trouble qualifying for a $75,000 loan or don't like the prequalified rates and terms you've seen, consider personal loan alternatives.

$75,000 is higher than most credit card limits and more than what you can borrow from your 401(k). But you might consider a home equity loan or a home equity line of credit (HELOC). Your home serves as collateral for either, which could lead to a lower-rate loan. But it also means you could lose your home if you default. For either type of loan, you'll typically need at least 15% home equity to qualify.

The best ways to borrow money depend on the assets you currently have along with your income, credit score, and current debt.