If you’re looking for a $35,000 personal loan, you might be wondering where to start your search. There is no shortage of lenders and a quick search will bring up potential offerings from traditional banks, credit unions and online lenders.

However, not all loan offers are created equal; some come with higher borrowing costs than others. Additionally, you will find that the eligibility requirements for personal loans vary by lender. So it’s also important to research each lender’s criteria to make sure you’re a good candidate for a $35,000 loan on competitive terms.

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

Before researching lenders and beginning the application process, take a step back to assess how much loan you need.

Borrowing less means you’ll get a more affordable monthly payment and save on interest. Plus, you’ll avoid the temptation to spend on unnecessary items and minimize the risk of quickly becoming overburdened, racking up excessive late fees, and blowing your budget. There is also a chance that you will damage your credit rating if you fall behind on loan repayments.

To determine if you need a $35,000 loan, write down the purpose of your loan and the expected cost of what you are looking to cover. Whether it’s a major purchase, home improvement project, medical bills, debt consolidation, wedding, or any other big expense, include a light cushion just in case. The number you get is the loan amount you should ask the lender for, even if it’s a little less than $35,000.

Conditions to benefit from a personal loan

Each lender has guidelines for personal loans. However, most will assess your credit score, income, and debt to determine if you are a good candidate for financing.

The lender wants to know that you are making enough money to make timely monthly payments, hence the importance of your debt ratio. Equally important is a track record of managing past credit obligations on time, as indicated by a good or excellent credit rating. But if your credit score is lower, you could be denied financing or pay higher borrowing costs if your application is approved.

You will generally find that borrowers with good or excellent credit scores 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% and 12.5% ​​as of October 17, 2022. However, borrowers with bad credit received higher rates ranging from 28.5% to 32%.

When you are ready to apply, gather the following:

• Two forms of identification: driver’s license, passport, government-issued ID, passport, military ID, social security card, birth certificate, or citizenship certificate
• Employer Information: employer name and supervisor name, email address and phone number
• Proof of income (traditional job): latest pay stubs, W-2s, 1099s, tax returns, or bank statements
• Proof of income (self-employment): 1099, tax returns or bank statements
• Proof of residence: rental agreement, mortgage statement, utility bill, property tax bill, voter card, or insurance bill

Personal lenders who offer loans of $35,000

Personal loans of $35,000 are available from banks and credit unions. You will also find several options through online lenders. Some offer fast approvals and funding times to get you the money you need within a business day.

best egg

Best Egg offers low interest rates to borrowers with good or excellent credit. But if your credit rating is low, you may still qualify for a personal loan. The application process is seamless and some borrowers get a loan decision and funding on the same business day.

You’ll likely pay origination fees starting at 0.99% (or 4.99% for loans with terms of 4 years or more) if you take out a personal loan with Best Egg, but early prepayment penalties are not taxed if you decide to pay. the loan at the beginning.

LightStream

LightStream is another viable option if you have good credit. Interest rates are some of the lowest you’ll find, and the lender will beat any competitor’s rate by 0.1 percentage points if it’s the same loan product. If your loan is approved, you will also be able to choose the loan term that suits your financial situation. There is also an option to defer loan disbursement for up to 30 days, and there are no origination or prepayment penalties.

Marcus of Goldman Sachs

Marcus by Goldman Sachs makes it easy to take out a loan, and you can manage the entire process from the user-friendly website or mobile app.

Many borrowers can apply in minutes, receive a quick decision, and have funds deposited within one to four business days of approval. You may be eligible for an APR reduction of 0.25% if you use the Autopay feature. There is also a skip payment feature if you make timely payments for 12 consecutive months. You will also find that support is available outside normal business hours to answer your questions or concerns.

Upgrade

Upgrade is another outstanding online lender that offers fast approvals and one-day funding turnarounds. Its personal loan offerings are flexible and there are no minimum credit scores or income requirements, making them accessible to borrowers with varying financial histories. However, you will pay set-up fees and limits apply on how the funds can be used.

Costs of a $35,000 long-term personal loan

The overall cost of a loan depends on the interest rate and the term of the loan. If possible, opt for the shortest repayment term to minimize borrowing costs. You’ll get a higher monthly payment, but your interest costs will be lower since the lender won’t have as much time to collect from you.

Additionally, selecting a shorter repayment period could mean you get a lower interest rate.

For example, a personal loan of $35,000 over 5 years with an interest rate of 11% results in total interest charges of $10,659.09 and a monthly payment of $761. However, the same loan with a term of 3 years and an interest rate of 10% lowers your total interest costs to $5,656.66, despite a higher monthly payment of $1,129. In this case, the 3-year loan would be the best choice assuming the monthly payment works for your budget.

At the end of the line

Finding a $35,000 personal loan doesn’t have to be difficult. But before you start your search, understand the general eligibility criteria to increase your chances of being approved.

Also consider loan offers from traditional banks, credit unions, and online lenders, and consider getting pre-approved before formally applying.

It is also essential that you compare loan offers and ensure that the monthly payment fits your budget. Most importantly, only borrow what you can comfortably afford to repay to protect your credit rating and overall financial health.