Lenders have different minimum and maximum amounts for borrowing a personal loan. Personal loans for $200,000 are very rare. If you find a lender that offers a six-figure personal loan, it’s usually capped at $100,000. In most cases, lenders cap the amount you can borrow with one personal loan at $40,000 or $50,000. However, there are ways you can potentially get a loan for $200,000 using other loan products. Learn more about your options for borrowing large amounts of money.
Key Takeaways
- Personal loans for $200,000 are very rare, but some lenders offer $100,000 maximums.
- Many lenders cap their maximum loan amount at $40,000 or $50,000.
- The higher your credit score, the greater the likelihood of qualifying for a $100,000 personal loan, but those with bad credit still can get approved.
- If you aren't eligible for a large personal loan, try for multiple smaller personal loans or get a co-signer to help you qualify.
- If you have enough home equity, you could get a home equity loan or line of credit for $200,000.
How to Get a Large Personal Loan
While you could get a $200,000 mortgage or refinance loan, you will not likely find a personal loan for that amount. Unlike home loans, personal loans are typically unsecured, meaning they are not backed by collateral. Unsecured loans are a higher risk for lenders, so they're typically not willing to lend as much as they would for a secured loan.
In general, the more money you want to borrow, the better your creditworthiness needs to be. You'll need a strong credit score and sufficient income. Here are the main steps you need to take to get a large personal loan.
1. Check Your Credit Score
The higher your credit score, the more likely lenders are to approve you for the loan amount you request (up to their maximum limit). Excellent credit tells lenders you’re responsible with credit and less likely to default on a loan.
2. Compare Lenders
Compare lenders based on factors like the maximum loan amount they offer, repayment terms, interest rates, and any fees they may charge.If you need a $200,000 loan, make sure you can afford to make the monthly payments. Loans with lower interest rates and longer repayment terms mean lower monthly payments.
You can compare loans from different lenders through pre-qualification. This requires a soft credit check and doesn’t hurt your credit score.
3. Gather Documentation
Once you’ve gotten pre-qualified with a lender whose loans meet your needs, prepare the documents you'll need to complete a full application. These can include a copy of your driver’s license or other government-issued identification, your Social Security number (SSN), proof of address, and employment verification, among other paperwork.
You’ll also likely need key financial documents, such as bank statements, tax returns, W-2s, and pay stubs, to verify your income and that you have the means to repay your loan.
4. Apply
Most personal loan lenders let you apply online, and you’ll know right away if you’re approved. After you apply and get approved, you can accept loan terms and set up banking information.
Every disbursem*nt time is different, depending on the lender, but in most cases, you'll typically receive your funds in as little as a day or up to a week.
Where to Get Large Personal Loans
Not all personal loan lenders offer large loans, but there are a couple that do, such as:
- LightStream: LightStream offers loans up to $100,000 and long repayment terms, upwards of 12 years. LightStream's loans are generally for borrowers with good or excellent credit and feature a larger-than-average autopay discount with no fees.
- SoFi: You can also get up to $100,000 at SoFi with no fees and get your funds the same day you’re approved.
How to Get a Large Personal Loan With Bad Credit
If you don’t have great credit, you might have difficulty qualifying for a personal loan or getting the full amount you need. However, there are some ways you can get a large personal loan even with bad credit.
If you have a low or average credit score, taking time to improve your credit can increase your chances of getting approved for a loan. Try to pay off debt and make sure you make all payments on time to creditors. If you see errors on your credit report, call your creditors to get them to correct the error with the credit bureaus. You can check your credit report for free each year through AnnualCreditReport.com.
You can also consider getting a secured personal loan. These loans use assets like your savings account to back the loan. Because the collateral reduces the lender's risk, you may be able to get a secured loan if you can’t qualify for an unsecured loan.
If you don’t qualify for a large loan on your own, consider getting a co-signer on the loan. A lender will also look at your co-signer's credit and financial situation when it decides whether to approve you for a loan. A co-signer signs onto your loan and is responsible for making payments if you fail to do so, which also reduces the risk for the lender.
A co-signer can be helpful if you need a personal loan immediately and don’t have the time or resources to build up your credit in the short term.
Alternatives to Personal Loans
If you don’t qualify for a large personal loan or you want to explore your options, you have a few alternatives to consider, including several different personal loans, credit cards, and home equity loans.
Multiple Personal Loans
If you have decent credit and can find lenders to borrow from, you can apply for several different personal loans to get the full $200,000 you need.
While there’s no limit to how many personal loans you can have at once from multiple lenders, some lenders might limit how many personal loans you can have with them. Along with that, the more hard inquiries listed on your credit report, which are added when you complete a loan application, the more your credit score drops.
Credit Cards
Most credit cards have limits based on how much you earn and if you can responsibly repay your minimum balance every month. However, some credit cards have high credit limits, and if you qualify, you can use those cards to pay for your needs. Just keep in mind that credit cards often have higher interest rates than personal loans.
Home Equity Loan
If you own your home and have built up equity, you may be able to borrow against the equity for a larger amount than you can get with a personal loan.
A home equity loan is a type of lump-sum loan often referred to as a second mortgage, as you may be making payments on your regular mortgage as well as a home equity loan at the same time when repayment begins. A home equity line of credit (HELOC) also uses your equity to back the loan, but with this loan, you only take out what you need. After you repay the funds you use from a HELOC, you can reuse the funds again, just as you would with a credit card.
Interest rates on home equity loans and HELOCs tend to be lower than personal loans because you use your home as collateral. This reduces the risk for the mortgage lender, as they can recoup lost funds should you fail to repay the loan by selling your home.
With home equity loans and HELOCs, you risk losing your home to foreclosure if you fail to make payments.
What Is the Largest Personal Loan You Can Get?
Most personal loans cap the amount you can get to around $40,000 or $50,000. In a couple of cases, you can borrow up to $100,000. However, only a few lenders offer this, and it’s normally reserved for borrowers with excellent credit.
What Credit Score Do You Need for a $200k Personal Loan?
Since you likely can’t get a $200,000 loan from one lender, you’ll need to take out multiple loans from a few different lenders to get this amount. The higher your credit score, the more likely you can qualify for the amount you need with the lowest interest rates offered. If you don’t have excellent credit, consider applying with a co-signer who has excellent credit to secure the highest amount offered.
How Many Personal Loans Can You Have at Once?
There’s no universal limit to how many personal loans you can have at once, so long as they are with different lenders. Some lenders limit how many personal loans you can have at once with them.
What Is a Good Personal Loan Interest Rate?
A good personal loan interest rate is the lowest interest rate offered among the lenders you're considering. Interest rates are always fluctuating, so it’s important to see what offers are available before completing a loan application.
The Bottom Line
Large personal loans aren’t common, but a few lenders offer them, some for as high as $100,000. While you likely won’t find lenders offering $200,000 personal loans, you can still find ways to fund major expenses with other loan solutions. Consider borrowing from multiple lenders, using credit cards, or tapping into your home's equity through a loan or line of credit if you have the means. Try to improve your credit report by paying down debt and making timely payments before applying for a large personal loan.
