How To Get a $200K Personal Loan

A $200,000 personal loan can solve a lot of problems. With that amount of money, you might remodel your entire house, purchase a chunk of land, pay for a highly specialized medical procedure, or consolidate mountains of high-interest debt.

The bad news? Qualifying for — and even finding — a $200K personal loan can be difficult, especially if you don't have good credit. The good news? We'll walk you through your options for getting a loan of this size below.

Compare personal loan rates

Where can I get a $200,000 personal loan?

Finding a lending institution that offers unsecured personal loans up to $200K is tough; qualifying for a loan of that size is even tougher.

That said, if you need a $200K personal loan, here's where to look:

Online lenders

If you're looking for a reputable online lender that offers $200,000 personal loans, BHG Financial may be your best bet. BHG Financial offers personal loans of up to $250,000, but only for debt consolidation and credit card refinancing.

BHG Financial eligibility requirements and conditions also include:

• Minimum annual income of $100,000
• Minimum credit score of 660
• Not available in Illinois or Maryland

You can use an online loan marketplace like Credible to compare multiple personal loan lenders and find the best offer. Just note that your options will be limited if there's no wiggle room on the $200K loan amount.

Check Out: Best Online Loans

Banks

Many large banks offer personal loans, but the maximum loan amounts typically fall well short of $200,000. Wells Fargo's maximum loan amount is $100,000, for example, while U.S. Bank offers personal loans of up to $50,000 for customers and $25,000 for non-customers. That said, some banks offer loans secured by your savings account, CDs, or other investments.

For example, Thomaston Savings Bank, which has 16 branches in Connecticut, offers secured personal loans up to $200,000. The collateral that secures the loan would be money in your savings account or a certificate of deposit (CD) held with the bank. Since you can typically borrow up to 100% of the collateral with this type of loan, also called a share secured loan, you would likely need at least $200,000 in savings or a CD.

It may be worth checking with banks in your area to see the size of loan amounts they offer, but it's unlikely you'll find a bank willing to lend $200,000 without collateral.

Check Out: Best Banks for Personal Loans

Credit unions

Credit unions are often great sources of financing for their members. However, finding a credit union offering $200,000 personal loans could prove challenging. Some of the largest credit unions in the U.S., for instance, max out at $50,000 (PenFed Credit Union) or $100,000 (Alliant Credit Union). Navy Federal Credit Union does offer home improvement loans of up to $150,000, but $50,000 is the maximum for general-purpose loans.

If you belong to a credit union, it's worth visiting your local branch and meeting with a loan officer to discuss your options. While it's unlikely you'll find a $200K personal loan, you may find another path forward.

Check Out: Best Credit Unions for Personal Loans

Your brokerage

If you hold non-retirement securities valued at $200,000 or more in a brokerage account, you may be eligible to borrow against them with securities-based lending. This can be an ideal way to borrow a large sum of money without liquidating long-term investments while getting a lower rate compared to an unsecured loan.

The type of loan and the amount of money you need depend on the brokerage. For example, TD Ameritrade offers a securities-backed credit line from $100,000 to $25 million, while Fidelity's line of credit typically must be secured by a minimum portfolio value of $500,000.

How to compare $200K personal loans

Take the time to compare $200K loan options to lock down the best option for your finances.

1. Interest rates and APRs

The annual percentage rate (APR) of a personal loan accounts for both the interest rate and any upfront lender fees, which makes APRs a more accurate way to measure the cost of borrowing than interest rates alone. The Truth in Lending Act requires lenders to display APRs for most types of consumer loans, so it's easy for borrowers to compare costs among different lenders.

If you're comparing two personal loans for the same amount — in this case, $200,000 — with the same repayment term, the loan with the lower APR should cost less. To make sure, however, you'll also need to account for fees.

Compare: APR vs. Interest Rate on a Personal Loan: What To Know

2. Fees

APR isn't the only factor that affects the cost of a personal loan. Many lenders charge various fees, particularly origination fees, which are typically a percentage of the loan amount and deducted upfront from the loan proceeds.

Other potential fees to take note of include late fees or non-sufficient funds (NSF) fees. Some lenders offer personal loans with no origination fees, while lenders such as LightStream and Discover charge no fees at all.

3. Repayment terms

The amount of time to repay a personal loan can have a huge impact on the overall cost of the loan and your monthly finances, especially with a personal loan as large as $200,000.

While personal loan repayment terms typically range from two to seven years, BHG Financial's repayment terms range from three to 10 years. A longer repayment term for a $200K personal loan can make the size of your monthly payment more manageable, although the tradeoff is paying more in total interest over the life of the loan. Find a balance between a monthly payment you can comfortably afford and the total interest costs.

4. Monthly payment

Three factors primarily affect the size of your monthly payment:

• The loan amount
• The APR
• The length of the repayment term

Because you'll likely be repaying a $200K personal loan for several years, think ahead to how your expenses might change in the years to come (getting married, having a child, moving to a new city, and so on) — and leave enough wiggle room in your budget to accommodate.

“If you're carrying a personal loan that large, the biggest risk is a change in your income,” says Weiss. “On a five-year loan, for instance, your monthly payments could be around $4,000. If your financial situation changes in the next few years, due to a job loss or unexpected expense, you may find it difficult to keep up.”

5. Total repayment costs

A $200,000 personal loan will end up costing you a lot more than $200,000, due to interest and fees. The higher the APR and fees, the more you'll spend in the long run. The longer the loan repayment term, the longer the loan will accrue interest.

If you have more than one $200K personal loan offer to consider, use a personal loan calculator to determine which one will cost you more in the long run.

What is the cost to repay a $200,000 loan?

How much it costs to repay a $200,000 loan depends on the APR (interest rate and upfront fees) and loan repayment term.

For instance, a $200,000 loan at 20% APR with a seven-year repayment term would cost a total of $173,064 in interest (almost as much as the amount borrowed). The monthly payment would be $4,441. But a $200,000 loan at 15% APR, repaid over seven years, would cost $124,185 in interest, with a monthly payment of $3,859.

The table below shows some more examples of what a $200K personal loan might cost.

How to get a $200K personal loan

Aside from the size of a $200K personal loan, the process is much like how you get a personal loan of any other type:

• Review your credit score and credit report: Check your credit score for free with Credible's credit-monitoring tool to see if you meet each lender's minimum credit score requirements. Also, check your credit report for free at AnnualCreditReport.com and look for old or inaccurate information that might be affecting your credit score.
• Calculate your estimated monthly payments: Borrowing $200,000 can have a tremendous impact on your monthly budget. Use a personal loan calculator to see how APRs and repayment terms affect the size of your monthly payment and your total interest costs. Then review your budget to make sure you can afford the monthly payment.
• Research and compare lenders: The pickings are slim when it comes to lenders that offer $200K personal loans. Look for online lenders, banks, and credit unions to see what your options are.
• Prequalify with multiple lenders: Many lenders allow you to prequalify without a hard credit check. Prequalifying can give you a good idea of whether you'll be approved for a loan — and at what rate. You can use an online loan marketplace such as Credible to prequalify with multiple lenders at one time.

• Prepare documentation: To formally apply, you'll need to provide some documentation, including proof of your identity, address, employment, and income. This might include documents such as a passport, recent utility bill, pay stub, or tax return.
• Choose a lender and apply: Follow the steps to apply with your preferred lender. If you're working with a local bank or credit union, you may be able to apply in person.
• Review terms, sign, and begin repayment: If you're approved, review the loan details to ensure you like the APR and repayment terms. If it's agreeable, sign, receive the funds, and make a plan to stay on top of monthly payments.

Learn More: How To Get a Personal Loan

Alternatives to a $200,000 loan

Getting a $200,000 personal loan is challenging — not only because they can be difficult to qualify for, but also because they're difficult to find. If you're having trouble finding an unsecured personal loan for $200,000, consider one of these alternatives, depending on your purpose for borrowing that much cash:

Keep in mind: One of the personal loan eligibility factors lenders consider is your debt-to-income ratio (DTI). You may qualify for the initial $100,000 loan but struggle to secure a second because of the impact the first loan has on your DTI.

Additional personal loans

There's no limit to how many personal loans you can have at a time. Theoretically, if you're having trouble finding (or qualifying for) a $200K loan, you could apply for two $100K personal loans, or four $50K personal loans, or use a combination of personal loans and credit cards.

Home equity loan or line of credit

If you own a home and have built up enough equity, you may be able to qualify for a home equity loan or home equity line of credit (HELOC). This can be great for financing major home renovations or whole-house remodels.

However, to get a $200,000 home equity loan, you need to have more than $200,000 in home equity. Most lenders let you borrow up to 80% or 85% of your home's equity. So, if you want a $200K home equity loan, you'd ideally have at least $250,000 in equity.

“Another option might be a cash-out refinance,” says Chad Gammon, certified financial planner and owner of Custom Fit Financial. “This might be a good option if your property has appreciated since you purchased it.”

Medical payment plan

If you're trying to get $200K to cover extreme medical costs for you or a loved one, a personal loan is not your only path forward. Speak with the hospital about a medical payment plan, or try crowdfunding online and through friends, family, and your community to cover the bills.

Debt relief solutions

If you want the $200,000 to consolidate various debts, you might have trouble qualifying if your credit score is not in the best shape.

While we always recommend pursuing paths that won't severely lower your credit score, drowning in $200K or more of debt may be cause for looking into debt relief options, such as a debt management plan, debt settlement, or — as a last resort — bankruptcy. Speak with a credit counselor or bankruptcy lawyer before you decide.