If you’re in the market for a $35,000 personal loan, you may be wondering where to start your search. There’s no shortage of lenders to choose from, and a quick search will display potential offers from traditional banks, credit unions and online lenders.
However, not all loan offers are the same; some come with steeper borrowing costs than others. Furthermore, you’ll find that the eligibility requirements for personal loans vary by lender. So it’s also important to research each lender’s criteria to ensure you’re a good fit for a $35,000 loan with competitive terms.
How to determine if you need a $35,000 loan
Before researching lenders and starting the application process, take a step back to assess how big of a loan you need.
Borrowing less means you’ll get a more affordable monthly payment and save in interest. Plus, you’ll avoid the temptation to spend on unnecessary items and minimize the risk of quickly becoming overextended, accumulating excessive late payment fees and possibly blowing up your budget. There’s also a chance that you’ll damage your credit rating if you fall behind on loan payments.
To determine if you need a $35,000 loan, jot down your loan purpose and the projected cost of what you’re looking to cover. Whether it’s a big-ticket purchase, home improvement project, medical expense, debt consolidation, wedding or some other considerable expense, include a slight cushion just in case. 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.
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 as of October 17, 2022. However, borrowers with bad credit received steeper rates ranging from 28.5 percent to 32 percent.
When you’re ready to apply, gather the following:
Two forms of identification: driver’s license, passport, state-issued identification card, passport, military ID, Social Security card, birth certificate or certificate of citizenship
Employer information: employer’s name and supervisor’s name, email address and phone number
Proof of income (traditional employment): most recent paystubs, 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
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.
