Taking out a $80,000 personal loan is a way to finance major expenses or consolidate large debt balances. Various lenders offer these loans and obtaining one can be straightforward, depending on the lender and your financial situation.
Large loans can come with high payments and interest charges, making it important to be aware of the full cost before borrowing.
6 Steps To Get a $80,000 Loan
You can take these steps to apply for an $80,000 personal loan:
1. Search for Lenders Offering High Loan Amounts
Many online lenders, banks and credit unions offer personal loans up to $100,000, so when looking for a $80,000 loan, you have options.
SoFi® and LightStream, for example, are two online lenders that offer unsecured personal loans of up to $100,000. Wells Fargo, on the other hand, is a brick-and-mortar bank that offers personal loans up to $100,000, but you have to be an existing customer to apply.
2. Consider Qualification Requirements
Qualification requirements for personal loans can vary, but in general, lenders want to confirm you have the financial means to repay a large sum before lending you $80,000, especially if the loan is unsecured. Lenders measure your likelihood of repaying a loan by reviewing factors like your credit, income and debt-to-income (DTI) ratio.
Here’s how each factor affects your loan application:
Credit
Having good credit—a score of at least 670—gives you the best chance at getting approved for a personal loan. However, a stronger credit score of at least 720 could help you qualify for the most competitive rates on a large loan.
Income
Lenders want to confirm you have steady employment and a reliable source of income to cover loan payments. Since loan payments may be high for an $80,000 loan, you may need high monthly cash flow to qualify.
Your full-time salary is just one form of income that can qualify you for a loan. Self-employment income, alimony, child support, commissions, bonuses, disability payments and investment earnings are other income sources that could be considered as well.
Debt-to-Income Ratio
Your DTI ratio shows how much of your monthly income goes toward monthly debt payments, and having a high DTI shows you may not be able to afford more debt payments.
Lenders typically like to see a DTI of no higher than 50% for personal loan applicants, but less than 36% is preferred. Paying off some debt to lower your DTI could put you in a better position to qualify for an $80,000 loan.
3. Prequalify With Multiple Lenders
Prequalifying for a loan can allow you to see what rates and terms you’ll likely be offered. A prequalification form asks about your credit and how much you want to borrow to give you a preliminary offer. Prequalifications typically only involve a soft inquiry that doesn’t affect your credit score and lets you review terms before choosing a loan.
4. Compare Your Offers
Getting loan offers from multiple lenders can allow you to compare interest rates, fees, terms and loan amounts before settling on a loan. This way, you can weigh costs and make sure you’re choosing the best loan after exploring the options available to you.
5. Complete and Submit Your Application
To complete the loan application, you may need to turn in documents like pay stubs or tax documents to verify your income and show a copy of your ID to confirm your identity. The final application stage usually also requires a hard inquiry that can temporarily affect your credit score.
6. Manage and Repay Your Loan
After getting approved for a loan, you’ll sign loan documents, and your funds are typically deposited directly into your bank account or sent by check. The lender will outline when your first payment is due and you’ll be required to make payments until the end of the loan term. In some cases, setting up autopay to make loan payments could qualify you for an interest rate discount.
How To Get a $80,000 Loan With Bad Credit
Getting an $80,000 personal loan with bad credit (a FICO score below 580) can be difficult. Having a low credit score means there’s a greater chance you could default and lenders may be wary of lending a large sum to a high-risk borrower.
That said, there are two possible ways you could get approved with bad credit. One option is applying with a co-signer or co-borrower and another could be applying for a secured loan.
Apply With a Co-Signer or Co-Borrower
A co-signer is someone who promises to repay your debt if you default, and their good credit backing the loan could help your approval odds. A co-borrower is someone who borrows money with you and is equally responsible for making regular payments.
Having a co-signer or co-borrower on a loan with good or excellent credit (at least 670) can help you qualify for better rates. Keep in mind that a co-borrower is also equally entitled to the cash you borrow, and not all lenders accept co-borrowers or co-signers.
Apply for a Secured Loan
Getting a secured loan backed by collateral is another way to qualify for a loan when you have bad credit. Some credit unions and banks offer savings-secured loans where money in your savings account backs the loan and a credit check may not be required.
A drawback of savings-secured loans is that the loan amount may be limited to what you have in savings, so you’d need a sizable sum stashed for this strategy to work. If you can’t repay secured debt, the lender could take the collateral or savings to pay off the loan.
Where Can I Get a $80,000 Loan?
Although $80,000 personal loans aren’t as widely available as smaller personal loans, you can still find $80,000 personal loans at some online lenders, banks and credit unions.
Online lenders often have more flexible eligibility criteria and faster funding processes than brick-and-mortar banks and credit unions. Credit unions may have membership limitations for loans and some banks limit personal loans to existing customers, so you’d have to open a bank account to qualify.
Here are some providers you may consider for an $80,000 loan.
| Loan Provider | Minimum Credit Score | Loan Amounts |
|---|---|---|
|
Not disclosed
|
$3,000 to $100,000
|
|
| 660 |
$5,000 to $100,000
|
|
| 650 |
$5,000 to $100,000
|
Long-Term Costs of a $80,000 Loan
The long-term costs and payments for a $80,000 loan can be high depending on your interest rate and loan term. The table below shows sample payments for an $80,000 loan with different interest rates and terms.
| Loan Amount | Interest Rate | Term | Monthly Payment | Total Interest Paid |
|---|---|---|---|---|
|
$80,000
|
10%
|
3 years
|
$2,581.37
|
$12,929.5
|
|
$80,000
|
15%
|
5 years
|
$1,903.19
|
$34,191.66
|
|
$80,000
|
20%
|
6 years
|
$1,916.23
|
$57,968.28
|
Alternatives to $80,000 Personal Loans
Personal loans are just one way to borrow $80,000. You can also use:
- Home equity loans. If you’re a homeowner, you could borrow money from equity built up in your house. Home equity loans are installment loans backed by your home and interest rates can be lower than personal loans. However, if you default, your lender can seize your home because it serves as collateral
- Home equity lines of credit (HELOCs). HELOCs are a revolving credit line backed by your home with a credit limit you can use and reuse as you repay your balance during the draw period. HELOCs can be a better option than installment loans when you need to borrow an undefined amount on an ongoing basis. They also use your home as collateral.
- Credit cards. Credit cards offer a credit limit you can charge purchases to or draw cash from for a fee. Come up with a credit card payoff plan since making minimum payments and maintaining a balance on credit cards with interest can cause debt to balloon.
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