How to get a $35,000 personal loan

You can get a $35,000 loan from a traditional bank, credit union or lender. However, interest rates, terms and lending guidelines vary by lender. Some loans also come with steeper borrowing costs than others. So, it’s important to evaluate the lender you’re considering to ensure you’re a good fit for a $35,000 loan with competitive terms.

Personal loan lenders that offer $35,000 loans

Personal loans for $35,000 are available through banks and credit unions. You will also find several options through online lenders. Some offer fast approvals and funding times to get you the cash you need as soon as one business day.

Apr Range Loan amount range Minimum credit score requirement Best Egg 8.99%-35.99% $2,000-$50,000 600 LightStream 7.99% to 25.49%* with Autopay $5,000-$100,000 695 Upgrade 8.49%-35.99% $1,000-$50,000 600

Best Egg

Best Egg offers loans to borrowers with good or excellent credit. But if your credit score is low, you may still be eligible for a personal loan. The application process is seamless, and some borrowers get a lending decision and funding the same business day.

You’ll pay an origination fee of 0.99 percent to 8.99 percent for any loans taken out with Best Egg. But early prepayment penalties aren’t assessed should you decide to pay the loan off early.

LightStream

LightStream is another viable option if you have a strong credit score. The interest rates are among some of the lowest you’ll find, and the lender will beat any competitor’s rate by 0.1 percentage points if it’s for the same loan product.

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If approved for a loan, you’ll also be able to choose the loan term that suits your financial situation. There’s also an option to defer the loan disbursement for up to 30 days, and there are no origination fees or prepayment penalties.

Upgrade

Upgrade is another exceptional online lender that offers fast approvals and funding times in as soon as one day. Its personal loan offerings are flexible, and there are no minimum credit score or income requirements, making them accessible to borrowers with varying financial backgrounds.

However, you’ll pay an origination fee between 1.85 percent and 8.99 percent. Borrowers are also prohibited from using the loan proceeds for higher education expenses, illegal activities, gambling or investments.

Requirements to receive a personal loan

Each lender has guidelines for personal loans. However, most will assess your credit score, income and debt load to determine if you’re a good fit for funding.

The lender wants to know that you earn enough money to make timely monthly payments, hence the importance of your debt-to-income ratio. It’s equally important to have a track record of managing past credit obligations on time, as indicated by a good or excellent credit score. But if your credit score is lower, you may be denied financing or pay higher borrowing costs if approved.

You’ll typically find that borrowers with good or excellent credit ratings qualify for the best rates offered by lenders. To illustrate, the average personal loan interest rate for consumers with excellent credit was between 10.3 percent and 12.5 percent. However, borrowers with bad credit received steeper rates ranging from 28.5 percent to 32 percent.

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When you’re ready to apply, gather the following:

  • Two forms of identification: Driver’s license, passport, state-issued identification card, passport or military identification card.
  • Employer information: Employer’s name and supervisor’s name, email address and phone number.
  • Proof of income (traditional employment): Most recent pay stubs, W-2s, 1099s, tax returns or bank statements.
  • Proof of income (self-employment): 1099s, tax returns or bank statements.
  • Proof of residency: Lease agreement, mortgage statement, utility bill, property tax bill, voter registration card or insurance bill.

Costs of a $35,000 personal loan in the long term

The overall costs of a loan depends on the interest rate and loan term. If possible, opt for the shortest repayment period to minimize borrowing costs. You’ll get a higher monthly payment, but your interest costs will be lower. Furthermore, selecting a shorter repayment period could mean you get a lower interest rate.

For example, a five-year, $35,000 personal loan with an 11 percent interest rate comes with total interest costs of $10,659.09 and a monthly payment of $761. However, the same loan with a three-year term and a 10 percent interest rate drops your total interest costs to $5,656.66, despite a higher monthly payment of $1,129. In this case, the three-year loan would be the better choice assuming the monthly payment works for your budget.

How to determine if you need a $35,000 loan

Before researching lenders and starting the application process, jot down your loan purpose and the projected cost of what you’re looking to cover. The figure you come up with is the loan amount you should request from the lender, even if it’s a bit lower than $35,000.

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Remember, borrowing less means you’ll avoid the temptation to spend on unnecessary items and minimize the risk of quickly becoming overextended. Plus, you’re less likely to accumulate excessive late payment fees, blow up your budget or damage your credit rating by borrowing more than you can afford and falling behind on loan payments.