How To Get a $45,000 Loan

A $45,000 personal loan can help you pay for major expenses, but it can also be costly to pay back. Unsecured personal loans may have higher interest rates than other types of funding, such as home equity loans or 401(k) loans, although they can be easier to get. Learn where and how to get a $45,000 personal loan, what to consider when comparing quotes, and alternatives that may be more cost-effective, in some cases.

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Where can I get a $45,000 personal loan?

Many online lenders, banks, and credit unions offer $45,000 personal loans. Here's how they compare.

Online lenders

Most online lenders are financial tech companies that don't have physical branch locations like banks and credit unions. Some are also banks that furnish loans themselves while others partner with banks to fund loans. Online lenders are more likely to serve borrowers with a wide range of incomes and credit profiles compared with traditional brick-and-mortar banks and may use alternative underwriting methods to check employment history, cash flow, and other factors. These characteristics can make loans from online lenders easier to qualify for than those from banks and credit unions. 

Still, the best rates and terms are usually reserved for borrowers with FICO credit scores of 740 or higher. If you have bad credit, you could still qualify, but be cautious. Bad-credit loans often have rates of 30% or higher. 

Kyle Enright, president of Achieve Lending, suggests working with a lender with debt consultants who review your loan needs and situation before applying with an online lender. “A good debt consultant will also be able to review the total costs over the term of the loan, including origination fees and any discounts, and help figure out the best options,” says Enright.

Banks

Traditionally, banks are brick-and-mortar financial institutions, but many banks now offer online loan applications with instant approval, in some cases, and same-day funding. Note that not all banks offer personal loans, and those that do may require you to be a customer with an account in good standing to apply. Others may let anyone apply, but reserve better rates and higher loan amounts for customers. 

Banks commonly have strict underwriting guidelines for personal loans, so it may be more difficult to qualify without good credit even if you're a customer. Find out if the bank offers secured loans, joint personal loans with a co-applicant, or loans with a cosigner, which could be easier to get approved for and offer lower rates.

Credit unions

Unlike banks, credit unions are not-for-profit financial institutions that are owned by their members. They tend to offer members a lot of perks, like discounts to community businesses, higher interest on savings accounts, and lower average personal loan interest rates. A credit union may also be more willing to work with you if your credit isn't perfect, especially if you have a longstanding relationship with one. 

The catch, however, is the membership requirement. Although it's easy to become a member of many credit unions, others may be limited to specific occupations (such as the military) or areas of the country.

Compare: Credit Union vs. Bank: Which Is Right for You?

How to compare $45K personal loans

When you're borrowing a large amount of money, like $45,000, small differences in loan terms can make a big impact on the cost of borrowing. Here's what to look at when comparing $45,000 personal loans.

1. APR (annual percentage rate)

The cost of borrowing is typically expressed as APR, which accounts for interest and any upfront lender fees. Personal loan APRs range between 6.49% and 35.99%, with the lowest interest rates reserved for borrowers with excellent credit. A loan with a high APR will increase the total amount you pay for borrowing and may result in a higher monthly payment compared to a low-interest loan.

Personal loan APRs are typically fixed rather than variable, so the size of your monthly payment and total interest costs over the life of the loan would remain the same.

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

2. Fees

Many lenders charge origination fees to cover the cost of underwriting and processing personal loans, often deducted upfront from the loan amount. This fee is typically a percentage, which could be between 0% and 12% of your loan, depending on the lender and your credit profile. But it may also be a flat fee.

A few lenders, generally banks, don't charge any fees for their personal loans, including late fees. But most charge a fee if you don't make your monthly payment on time. Late fees can be a percentage of your missed payment — sometimes as much as 15% of the payment amount — or a flat fee, sometimes between $5 and $30 per payment. 

A prepayment penalty is a fee for paying your loan off early. Very few lenders charge a prepayment penalty for personal loans nowadays.

Lenders must include the details of any fees charged in the loan agreement as required by the Truth in Lending Act (TILA). 

3. Repayment terms

Personal loans typically have repayment terms between two and seven years, although terms vary by lender. Some lenders, like LightStream and BHG Financial, offer repayment terms longer than 10 years. But you may need to use the loan for a purpose that qualifies for a long repayment term, like home improvement or debt consolidation. 

Generally, choosing a longer repayment term can lower your monthly loan payment. The flip side of that is that you'll likely pay more interest over your loan's term by extending the repayment period. Plus, rates tend to be higher on longer-term loans.

Use a personal loan calculator to see how length of repayment terms can affect monthly payments and interest costs.

4. Monthly payment

Your monthly payment includes the amount you borrow plus interest, divided into equal payments throughout your loan term. Monthly payments can vary significantly between $45K loans, depending on your APR and repayment term. Prequalifying with lenders can help you compare loan quotes and their payments.

Once you find a loan you think you can afford, test that payment in your budget, suggests Andrew Lokenauth, founder of TheFinanceNewsletter.com and a finance professional who has held multiple Wall Street banking positions.

“Take your desired monthly payment and add 25% to it,” says Lokenauth. “The extra buffer accounts for unexpected expenses that always seem to pop up.” For example, say a prequalification quote gives you an estimated loan payment of $1,500. Add 25% to that, for a total of $1,875. “Set that amount aside for three months before taking the loan,” explains Lokenauth, who says that doing so can keep you from overextending yourself financially.

5. Total repayment costs

Comparing your total repayment costs can give you a clearer picture of which loan is most affordable long-term.

Here's why: Once you pay off your loan, you'll have paid for the entire original loan balance, plus fees and interest. Your total repayment costs are higher than the $45,000 you borrowed, and could be significantly higher if you had a long loan term or a high APR. 

For example, a seven-year $45,000 loan with a 26% APR results in $53,108 in interest — more than the original loan amount. To compare, you'd pay $9,584 in interest for a three-year loan with a 13% APR. 

What is the cost to repay a $45,000 loan?

Your monthly payments and total interest paid make up the total cost to repay a $45,000 loan. Higher APRs and longer repayment terms can raise total costs. 

To show how different loans can compare, we've detailed some examples of three-, five-, and seven-year $45,000 loans with various APRs below. Note that these are hypothetical examples for illustrative purposes only.

Three-year loan

Five-year loan

Seven-year loan

The table above illustrates how longer repayment schedules often translate into smaller monthly payments but higher overall interest costs. Look for a loan with a monthly payment you can comfortably afford, but not so comfortable that it balloons your long-term interest costs.

How to get a $45K personal loan

Take note of the following steps before applying for a $45,000 personal loan so you'll know what to expect.

1. Check your credit score and credit report: Many lenders have minimum credit score requirements. Check your credit report with Credible's free credit-monitoring tool to see how your score matches up. Review your credit report for free through AnnualCreditReport.com to check for any mistakes that could hurt your credit score and make it more difficult to apply for a loan. Contact the reporting credit bureau to correct errors as soon as possible.
2. Calculate your payment: Estimate what you might pay for a $45,000 personal loan. Check the tables above as a guide, or use a personal loan calculator to calculate potential monthly payments and total costs.
3. Shop around for a lender: Look for lenders that welcome borrowers with similar credit profiles. Also, make sure the lenders you consider offer $45,000 loans, as some max out at $40K or lower. The size of personal loans typically ranges from $1,000 to $100,000, with a few lenders offering loans of up to $250,000.
4. Prequalify with multiple lenders: Many lenders let you fill out a quick form to prequalify for a loan. Prequalification lets you see the APR and repayment term you may qualify for if you apply, although it's not an offer of credit. You can also prequalify with multiple lenders simultaneously through Credible. The process doesn't hurt your credit, but a lender will usually perform a hard credit check when you officially apply, which can lower your score by up to 10 points for up to 1 year. 
5. Gather documents and apply: Lenders typically ask for details such as proof of identity and proof of income. Online applications let you submit these documents digitally. 
6. Review terms and sign: If approved, your lender sends you a loan agreement to review. Read through the entire document before signing to understand the fees and terms associated with your loan.
7. Get funded: After signing your agreement, the lender will fund your loan. Many online lenders send funds within one or two business days, but funding times vary.

Learn More: How To Get a Personal Loan

Alternatives to a $45,000 personal loan

If you're not sure whether a $45,000 personal loan is the best option, consider alternatives.

Home equity loan or HELOC

You may be able to tap into your home's equity to borrow the money you need using a home equity loan, home equity line of credit (HELOC), or cash-out refinance. These options are based on the equity you've built up and are secured by your property, so you may qualify for a lower interest rate than you'd get with an unsecured personal loan. 

But these loans come with some trade-offs. Generally, home equity options take longer to approve — in some cases, several weeks — and you could face foreclosure if you fall behind on payments. Plus, you may need to pay for expenses such as closing costs and appraisals. 

Also, most lenders limit how much you can borrow, typically up to 80% of your home's value minus what you owe on your mortgage. So if your home is worth $250,000 and you owe $150,000, you could qualify for a loan of up to $50,000. 

401(k) loan

Some plan administrators allow loans from 401(k) plans. You may be able to borrow up to 50% of your vested account balance up to $50,000 (or up to $10,000 if 50% of your balance is less than $10,000). 

If you take out a 401(k) loan, you're borrowing against your retirement savings, and the money you borrow won't be eligible for gains. But no credit check is required since you’re using your own money, which could make one suitable if you have a large 401(k) balance and are sure you can pay the loan back.

Compare: 401(k) Loan vs. Personal Loan: Which Is Better?

Secured loan

Most personal loans are unsecured, but some banks and lenders offer secured personal loans for $45,000 or more. Secured loans are backed by collateral, like a vehicle, savings account, or brokerage assets. As a result, they may have more favorable interest rates than unsecured loans. “In fact, the spread between secured and unsecured terms can be the difference between a 6% cost and a 19% one,” says Eric Croak, a certified financial planner and president of wealth management firm Croak Capital. “It works when the person owns something of value but does not want to sell it outright.”

Compare: Secured vs. Unsecured Personal Loans

Annuity cash advance

An annuity cash advance gives you a lump-sum payment as a trade for future annuity payments. You may be able to negotiate a payment from a buyer who will then continue to collect your monthly checks to pay for the advance. However, this will reduce your future income. “The tradeoff is steep,” says Croak, “so I would say this only fits clients with no access to traditional credit and a need to liquidate something they already legally control.” 

Learn More: 9 Personal Loan Alternatives