How much personal loan can I get?

Whether you're looking for a debt consolidation loan or to 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.

A simple way to size your loan takes three steps:

• First, add up exactly what you need, like the total of the card balances you'll consolidate or the quote for your project.

• Next, estimate the monthly payment based on the amount, the interest rate, and the loan term.

• Then, check that payment against your budget to make sure it fits.

Here's a hypothetical example. Say you borrow $10,000 at a 12% APR. Watch how the monthly payment changes with the term:

The tradeoff is clear here. The shorter the term, the higher your monthly payment but the less you pay in interest overall. A longer term lowers your monthly payment but raises the total interest you pay over the life of the loan.

What lenders look at when evaluating your personal loan eligibility

In general, most lenders look at the same core factors:

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

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. Achieve Personal Loans could be a good place to start.

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?

Personal loans generally run from about $1,000 up to $100,000, though a six-figure loan isn't exactly common. Many lenders cap unsecured personal loans around $50,000.

No federal law limits the size of a personal loan. Each lender sets its own maximum based on internal policies, which is why the amounts you'll see can vary widely from lender to lender.

If you want a particularly big loan, you may need to check with the lenders 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 tends to show 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. Stronger 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?

To qualify for a bigger personal loan, work on lowering your DTI and building your credit score. Here are a few things to focus on:

• Make on-time payments consistently

• Charge less to your credit cards each month

• Pay more than the minimum owed on your debts

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

• Space new credit applications at least six months apart

For a joint goal like a family move or a home remodel, you may also have another path. A co-borrower shares the loan and has equal access to the funds, so the two of you take it on together.

You could also consider applying with a co-signer, where the co-signer guarantees repayment but doesn't share the funds. Either choice could strengthen your application and may support a larger amount.

Achieve is not a Credit Repair Organization and does not provide, or offer, services or advice to repair, modify, or improve your credit.

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 let you prequalify to quickly get a sense of what they're willing to offer you.

Prequalification typically 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. For example, you can prequalify with Achieve Personal Loans to get an idea of the rates and terms you might qualify for if you applied without hurting your credit scores.

You'll likely need to provide some information, including the amount you want to borrow and the loan purpose, as well as your Social Security number. The process isn't as involved as a formal personal loan application. Final terms depend on full underwriting and may differ from the estimate.

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

Now you know a bit about how personal loans work and what you can afford to pay each month. You're ready for the next step: Finding the right lender. Get prequalified with at least three lenders that use a soft inquiry so you can get the full picture of what you're eligible for, then choose the lender that lets you balance monthly payment with overall cost.

Achieve Personal Loans lets you check your rate with no effect on your credit score.

Achieve is not a Credit Repair Organization and does not provide, or offer, services or advice to repair, modify, or improve your credit.