A personal loan can come in handy if you're short on cash. But how much can you get with one? The answer depends on a host of factors. The most important are your credit score, income, and current debt. But also in the mix is how you plan to use the money. We'll look at these in detail, plus what you can do to qualify for a larger loan amount or a lower rate.
Tip
The average personal loan amount for borrowers on the Credible marketplace was $18,287 in 2024.
What do you need to get a personal loan?
First, you need to understand basic loan requirements to figure out how to maximize the amount you'll qualify for. When you apply for a personal loan, lenders take a look at your financial situation to determine how much they think you can pay back and how likely you are to pay it back. This minimizes their own risk and determines your interest rate and the amount you'll qualify for.
Most personal loan lenders will look at a few key pieces of information when you apply for a personal loan:
- Credit score: Your credit score tells lenders about your borrowing history. Lenders see a higher score as an indication of more responsible borrowing. Lenders are more likely to give you a loan — and a lower interest rate — if you have a higher credit score.
- Income: Generally, you need to show proof of income to qualify for a personal loan. Lenders want to know you're consistently earning money and have the funds to repay your loan.
- DTI: Your debt-to-income ratio (DTI) is the ratio of your debt to your gross monthly income. Having a lower DTI shows lenders you have available income to put toward a new loan — in other words, your income isn't already tied up repaying existing debt.
Factors that affect your loan amount
Credit score
Lenders use your credit score to understand your risk as a borrower. Since a higher credit score indicates a history of paying back debt on time and in full, it signals that you're a less risky borrower who can potentially handle a larger loan amount.
Plus, with a high credit score, you're more likely to get a low interest rate, which means a lower monthly payment. If the lender thinks you can handle a higher monthly payment, you could qualify for a larger loan.
Most lenders use the FICO credit scoring model, which assigns the following credit score ranges on a scale of 300 to 850:
- Below 580: Poor
- 580 to 669: Fair
- 670 to 739: Good
- 740 to 799: Very Good
- 800 or higher: Exceptional
Tip
The credit score you need to qualify for a personal loan depends on the lender. Some lenders offer loans for bad credit, but most require fair credit, or a score of at least 580, to qualify for a loan.
To get the best rates and highest loan amounts, however, you likely need to have a very good or exceptional credit score. Here are average loan amounts by credit score from borrowers who got personal loans through the Credible marketplace:
Personal loan debt-to-income ratio (DTI)
Your debt-to-income ratio measures how much of your pre-tax monthly income goes toward paying debt. For example, if you earn $5,000 per month and pay $1,000 toward your debt every month, your DTI is 20%. Although requirements vary, lenders generally prefer a DTI of 36% or less for personal loans.
Bruce McClary, senior vice president of membership and media relations at the National Foundation for Credit Counseling, says DTI affects how much lenders are willing to lend you because the ratio highlights the extra cash you have each month to put toward a new loan payment.
"The more of your money that is already committed to debt repayment, the less room there is to afford a new loan payment," McClary says. "Lender-approval guidelines and benchmarks for certain loan types may come with more specific DTI requirements, so it is always good to ask your lender for details when researching your borrowing options."
Income
Your income is important to prospective lenders because it helps demonstrate your ability to repay the loan. Combined with a good or excellent credit score, sufficient income and a low DTI could increase the loan amount you might qualify for.
"Higher income may lead to approval for higher loan amounts, and low income may restrict the amount you are able to borrow," McClary says.
Tip
Minimum income requirements vary by lender. Check the lender’s website or contact customer service.
Loan purpose
Loan purpose plays a role too. Some loan purposes tend to have lower rates than others, such as loans for debt consolidation or credit card refinancing. A lower rate can increase the amount you qualify to borrow. Some loan purposes may also have higher available loan amounts, such as home improvement loans.
Lender limits
Even if your income, credit score, and DTI make you eligible for a large loan, individual lenders have maximum amounts they'll let you borrow. For example, Best Egg and Upgrade offer personal loans up to $50,000, while SoFi and LightStream offer loans up to $100,000. But some lenders offer smaller loans. Avant offers loans up to $35,000; OneMain Financial offers loans up to $20,000.
Lenders can also have different APR ranges. For instance, if you qualify for LightStream's lowest rate at 6.94% APR, the best rate you might get from SoFi is 8.99% APR, which is its lowest rate. Remember, the rate you qualify for impacts your monthly payment, which in turn can impact the amount a lender is willing to lend.
Employment status
Lenders ask about your employment status to look for stability and consistency in your employment. McClary says that lenders are more likely to approve your loan application if you have a steady work history.
"If you have been with the same employer for the past two years or longer, that can improve your chances of approval and may even influence the maximum amount the lender is willing to offer," he says.
If you're a contractor or self-employed, your lender will likely ask you for income-related paperwork.
"You should be prepared to provide extra documentation as proof of income," McClary says. "Examples include tax returns and your business accounting records."
How to increase the amount you can borrow
If your credit score, DTI, and income are such that you're struggling to qualify for the loan amount you need, there are few things you can do:
- Improve your credit score
- Lower your DTI
- Apply for a loan with a cosigner or co-applicant
Improve your credit score
You may not be able to increase your credit score overnight, but taking the following actions can have it trend in the right direction:
- Ask for higher limits on your credit cards (this can potentially have a big impact to your credit score in a short amount of time)
- Make all your loan and credit card payments on time
- Lower your credit utilization by spending less on your cards
- Keep old credit cards open, even when they're paid off
- Check your credit report regularly, and dispute any errors
Related: How To Build Credit
Lower your DTI
There are two levers you can pull to lower your DTI: increase your income, or lower your debt. To increase your income, you may be able to negotiate a raise, start a side hustle, or find a higher-paying job. Usually much easier said than done, but it could be well worth the effort.
To lower your debt payments, put extra money toward paying off individual loans and credit cards, try negotiating lower interest rates, or consolidate your debt at a lower interest rate. A debt consolidation loan can potentially lower your overall monthly payments (thereby freeing up money), and can decrease your credit utilization ratio (thereby increasing your credit score).
Apply with a cosigner or co-applicant
Finally, applying for a loan with a cosigner is probably the quickest way to qualify for a bigger loan. A cosigner is someone, ideally with good credit, who applies for and signs a loan with you.
This can make your application more attractive — and less risky — to the lender. Both you and the cosigner will be on the hook, however, if you default on the loan.
The risks of borrowing more than you need
Receiving a loan in the form of a large lump sum can be both an excitement and a relief — it can fund a large vacation, pay for important medical expenses, cover you during an emergency, or help you consolidate your debt. But even though qualifying for a loan can feel great at first, keep in mind you have to pay it all back — plus interest.
Borrowing more than you need isn't usually a good idea. It can increase your debt burden, monthly payments, and interest payments. With more debt on your plate, you may have a harder time keeping up with payments, which is important for maintaining a healthy credit score. Not to mention more debt on your plate means less money going toward other expenses, fun purchases, and goals.
Make sure you only borrow what you can afford to pay back. Running the numbers with a personal loan calculator can help you gauge your future monthly payments and total loan cost to avoid biting off more than you can chew.
FAQ
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