How much personal loan can I get?

Whether you're looking to consolidate some debt or pay for a large expense, a personal loan could help you get the cash you need. You can use these loans for almost anything, but first you have to get approved.

You don’t have to take a wild guess about how much personal loan you can get. Lenders base loan amounts on clear factors like your income, existing debts, and credit profile—things you can review and influence ahead of time. With a little preparation, you can walk into the process knowing what’s realistic and what steps might help you qualify for more.

We’ll break down how lenders decide loan amounts and what you can do to put yourself in the best position. Along the way, we’ll point you to deeper resources if you want to dig in further or fine-tune your approach.

Figure out what personal loan amount you need

The first step is to work out how much money you'll need to reach your financial goal. You might do some research, like making a list of all your credit card balances or finding out the cost of a new item.

You'll also want to put a number on what kind of payment you can afford. Think about what amount would fit comfortably into your budget, rather than imagining the absolute maximum you could accommodate. You don’t want to stretch yourself too thin and possibly put yourself at risk of falling behind on payments in an emergency.

What lenders look at when evaluating your personal loan eligibility

Every lender weighs your application a bit differently, so it's good to get estimates from three to five companies before you decide which you want to work with. But typically, they all look at the following factors:

• Income. Lenders want to make sure you have a steady source of income you can use to make payments.

• Credit score. Credit scores tell the lender how you've handled debt in the past.

• Debt-to-income (DTI) ratio. Your debt-to-income ratio is calculated by dividing your total monthly debt and housing payments by your pre-tax monthly income. Most lenders prefer a DTI under 43%.

• Your reason for borrowing money. The purpose of your loan could affect how much the lender enables you to borrow and what kind of loan terms you get.

How much personal loan can I get on my income?

When lenders choose how much to lend you, the actual amount of your income matters less than your debt-to-income (DTI) ratio. Lenders will only let you borrow as much as they think you could comfortably afford to repay based on the monthly payments.

So, the personal loan amount you’ll qualify for depends on your income, your debts, the interest rate, and the loan term. Lenders also look at your credit history to see how risky it is to lend you money.

The only way to know for sure how much personal loan you'll be able to get is to prequalify with the lender. More on this below.

What is the maximum personal loan amount most lenders offer?

While a few personal loan companies offer loans up to $100,000, a more common range for the max amount they'll lend via a personal loan is $40,000 to $50,000. If you want a particularly big loan, you may need to check with the companies you're considering to find out if they offer loans that large. They might have this information on their website or you may need to reach out directly to ask.

Does credit score decide my personal loan limit?

Yes, but it's not the only factor. Your credit score often influences your personal loan limit because lenders consider it a measure of your riskiness as a borrower. 

A high credit score shows you've consistently made on-time payments in the past and you don't frequently open new credit or max out your credit cards. This gives personal loan lenders more confidence that you'll pay back what you owe. In turn, they may let you borrow more money than someone with your same DTI but a lower credit score.

If you have fair credit you may still be able to borrow the amount you need, but likely with a higher interest rate. How much higher will depend on other factors, like the lender you work with, your income, and how much you're borrowing.

Simple moves that could boost your personal loan eligibility

Your credit score and your debt-to-income ratio are both chances to make yourself more appealing to personal loan lenders. Improving these numbers could mean more approvals and better personal loan terms. Some steps to try include:

• Pay off small outstanding debts. This could reduce your debt-to-income ratio and help you fit the personal loan payments into your budget more easily.

• Check your credit report for errors. You can get yours for free every week through AnnualCreditReport.com. If you notice any errors, dispute them with the credit bureaus right away.

• Avoid applying for other loans and credit cards. Too many new credit applications within a short period of time could raise red flags with lenders.

• Consider applying for a smaller loan. If you're worried you won’t be approved for a larger amount, you could increase your odds of success by asking for less.

How can I qualify for a bigger personal loan?

Qualifying for a bigger personal loan often means taking measures to reduce your DTI and increase your credit score. For instance, you can focus on:

• Consistently making on-time payments

• Reducing how much you charge to your credit cards each month

• Paying more than the minimum owed on your debts

• Leaving old credit cards open unless they charge an annual fee

• Spacing new credit applications out by at least six months

An easier way to find out how much personal loan you can get

You don't have to guess what personal loan amount you'll qualify for. Most personal loan lenders allow you to prequalify to quickly get a sense of what they're willing to offer you. 

Prequalification uses a soft credit inquiry to take a broad look at your finances and give you an estimate of what you'd get if you applied. Soft credit checks don't impact your credit score.

You’ll need to provide some information, including the amount you want to borrow and the loan purpose, as well as the last four numbers of your Social Security number. The process isn't as involved as a formal personal loan application.

What’s next: Take the first step toward your personal loan now

Now that you know a bit about how personal loans work and how much you can afford to pay each month, it's time to start comparing lenders to figure out which offers you the best deal. We recommend looking at rates from three to five companies to get a good sense of the options available to you. Once you've found one you like, go ahead and apply.

Not sure where to start? Achieve Personal Loans lets you check your rate with no effect on your credit score.