How To Get a $150K Personal Loan

If you’re looking to borrow $150,000, you’ll find that most loan options require that you have home equity or another type of collateral. “Obtaining $150,000 without collateral is hugely challenging, as most personal loans typically cap out at $50,000,” says Xavier Epps, finance expert and owner at FinanceGuyX. 

But a few lenders offer unsecured $150,000 personal loans. If your money is tied up in investments, you may also be eligible for a secured loan without putting your home on the line. It’s also possible to take out multiple personal loans. In any case, you’ll likely need good credit and a high income to qualify. “Your best bet is having excellent credit, with a score above 750, and an income of at least $150,000,” says Epps.

We’ll help you compare your options and estimate the repayment costs for a $150,000 loan. We’ll also discuss a few personal loan alternatives that may be a better fit.

Where can I get a $150,000 personal loan? 

Online lenders

Online lenders are typically non-bank lenders that offer personal loans with an easy online application and fast funding. Without brick-and-mortar locations, online lenders may have lower operating costs, which sometimes results in lower rates. But they don’t typically offer in-person support. 

BHG Financial offers unsecured personal loans up to $250,000 for eligible borrowers. LightStream, which offers personal loans up to $100,000 for people with good and excellent credit, may be another option — the lender doesn’t have rules against taking out multiple loans. 

Banks

A handful of banks, including SoFi (also an online lender) and Wells Fargo, offer $100,000 loans. But few offer unsecured loans above that amount.

If you have a good relationship with your bank, you might consider asking about a $150,000 personal loan, especially if you have a savings or investment account. Several banks offer large personal loans secured by an existing account. These options allow you to access cash without incurring early withdrawal penalties or missing out on growth opportunities. 

For example, Fifth Third Bank offers secured personal loans of up to $500,000 for customers with a Fifth Third savings, CD, or investment account. Amerant Bank offers CD-secured loans up to the value of your CD, and BayFirst offers CD and money market secured loans. 

Credit unions

Credit unions charge lower personal loan interest rates on average than banks. They also tend to have less stringent eligibility requirements and consider a variety of financial criteria when making a lending decision. “Plus, since credit unions are nonprofit, their goal is to support your financial health and not maximize their profits,” says Bola Sokunbi, author/founder and CEO of Clever Girl Finance. 

Some credit unions offer $150K personal loans to members under certain circumstances. Bear in mind that you’ll need to meet the credit union’s requirements for membership in order to apply for a personal loan. For example:

• Navy Federal Credit Union offers personal loans up to $150,000 for home improvement, although you're required to apply with a qualifying co-borrower at a branch office.
• United Nations Federal Credit Union offers unsecured personal loans up to $150,000.
• First Tech Federal Credit Union offers stock-secured loans up to $1 million and savings-secured loans up to $500,000.

Compare: Secured vs. Unsecured Personal Loans

How to compare $150K personal loans

Many lenders allow you to prequalify without damaging your credit score. This quick and easy process allows you to see an estimate of the amount, rate, and term you may qualify for. As you compare options from different lenders, pay attention to the following factors.

Interest rates and APR

An interest rate tells you the cost to borrow money as a percentage of the loan amount, excluding fees. Most lenders provide the APR, which is the annual borrowing cost including interest rate and upfront fees, so that you can compare costs across lenders more easily. You should aim for the lowest APR, but make sure the monthly payment is manageable as well. 

Fees

Some personal loan lenders charge an origination fee, which is a one-time fee that comes out of the loan proceeds. Because lenders typically charge a percentage of the loan amount, origination fees can be particularly expensive for a $150,000 personal loan. But some lenders offer personal loans with no origination fee. 

Most personal loan lenders don’t charge prepayment penalties, but you should check your loan agreement before signing. Prepayment fees are designed to discourage you from repaying your loan early, and it’s better to have the flexibility to make extra payments when you can. Some lenders charge other incidental fees, like late payment fees and returned check fees, while others don’t charge any fees whatsoever. 

Repayment terms

Repayment terms for personal loans typically range from one to seven years, but some lenders offer longer terms, especially for large loan amounts. For example, BHG Financial offers terms up to 10 years, and LightStream offers terms up to 20 years for home improvement loans. 

A long repayment term allows more interest to accrue, and the difference in cost is significant for large loan amounts. But a long repayment term also means a lower monthly payment.

Monthly payment

A $150K personal loan will typically have a high monthly payment. You can achieve a more affordable payment by choosing a longer repayment term, but you’ll pay more in interest over the life of the loan. We’ll provide some examples of repayment costs later on. 

It’s essential to check that the monthly payment fits into your budget before accepting a loan offer, since failing to repay a personal loan can damage your credit.

Check Out: How to Create a Budget: A Step-By-Step Guide

Total repayment cost

When comparing personal loan options, consider the total repayment cost over the life of the loan. If the lender doesn’t provide this information with your APR estimate, you can use a personal loan calculator to input different repayment terms for the amount you want to borrow at the rate you prequalified for. 

Just keep in mind that longer repayment terms typically carry higher APRs — account for that when you’re trying out different repayment terms to estimate overall cost. 

Collateral requirement

Some lenders require collateral for a $150,000 personal loan, so you can narrow down your options if you’re seeking an unsecured personal loan. If you have money in a savings account, certificate of deposit, or investment account, you might consider using it as collateral for a secured personal loan. Lenders typically offer lower rates for secured loans. 

“A secured personal loan uses collateral, which usually means lower interest rates and better approval odds, especially if your credit needs work,” says Sokunbi. “The downside? If you can’t make payments, you risk losing that collateral.”

When comparing secured $150,000 personal loans, consider the following questions:

• What percentage of my savings/investments will the lender allow me to borrow?
• Do I need to have accounts with the same financial institution offering the loan? Do my accounts need to be open for a minimum amount of time? 
• Can I use multiple accounts or different types of accounts as collateral?
• What will happen to my accounts if I default on the loan?

What is the cost to repay a $150,000 loan?

The total cost to repay a $150,000 personal loan depends on the APR and repayment term. The table below shows several examples of different loan scenarios, so you can see how the APR and term affect the monthly payment and the total borrowing cost over the life of the loan.

The rates below are based on someone with very good to excellent credit.

Note that in one of the examples, the total borrowing cost is nearly as much as the loan amount. If you have credit issues that prevent you from getting a low APR or budget constraints that don’t allow for a high monthly payment, you may want to avoid getting a $150,000 personal loan and consider alternatives instead. If you’re considering a stock-secured loan, be sure to weigh your estimated return against the total borrowing cost.

How to get a $150K personal loan

• Review your credit score and financial profile: Check your credit score to get a sense of the APR and loan amount you might qualify for. You can check your score for free with Credible's credit-monitoring tool. Once you know your credit score, add up your sources of income and review assets like savings and investments.
• Review your budget: Evaluate your monthly budget to determine how much you can comfortably devote to loan payments. 
• Research and compare lenders: Consider credit and income requirements, interest rates, fees, repayment terms, collateral requirements, customer support options, and customer reviews on third-party websites like Trustpilot. 
• Prequalify with multiple lenders: Use a personal loan marketplace like Credible or prequalify individually on lender websites. You’ll need to know how much you want to borrow and what you’ll use the loan for. Prequalifying won’t hurt your credit, but it doesn’t guarantee you’ll qualify for the rate quote or at all.  
• Make sure a $150K loan makes sense: Check that it’s feasible to obtain the monthly payment you need based on the rate quotes and repayment terms you prequalified for.
• Choose a lender and apply: Choose the loan option that best meets your needs and proceed with the formal application. You may need to gather documents to upload, such as your driver’s license, tax returns, bank statements, or pay stubs. A formal application typically triggers a hard credit inquiry. You can expect a slight, temporary dip in your credit score as a result. 
• Review terms, sign, and begin repayment: If you’re approved for a $150,000 loan, make sure you’re happy with the rate and the monthly payment is affordable. Check for fees and read the terms and conditions carefully before signing your loan documents. You may want to set up autopay to help prevent missed payments.

Learn More: How To Get a Personal Loan in 6 Steps

Alternatives to a $150,000 personal loan

If you’re not eligible for a $150K personal loan or you’re looking for a lower-interest secured loan, consider the following alternatives. 

Home equity loan or HELOC

Home equity loans and home equity lines of credit are secured by your home equity. That means there’s a risk of foreclosure if you can’t afford repayment. But Epps says these secured loans come with advantages. “Rates are significantly lower, typically around 6-8%, compared to 12-20% for personal loans,” he says. 

Home equity investment

Home equity investments allow homeowners to tap their home equity without taking on debt. HEI contracts often have lax credit and income requirements, and you can typically repay the money out of the sale of your home. But they come at a much higher cost than a loan secured by your home, especially if you live in an area where home prices appreciate dramatically. 

Cash-out refinance

A cash-out refinance involves replacing your mortgage with a larger one and keeping the excess amount as cash. Like a home equity loan, a cash-out refinance is secured by your home and carries a risk of foreclosure. It also comes with closing costs, though some lenders will roll those fees into the new loan.

A cash-out refinance may be a good option if you can get a lower interest rate on the new mortgage. This could allow you to access some of the equity in your home as cash without a significant increase to your monthly mortgage payment.