How To Get a $55K Personal Loan

You can buy a lot of things for about $55,000 — a New Jersey wedding, a 2025 Audi A4 (Premium Plus trim), and a world cruise, to name a few. A $55,000 personal loan is one way to get the money if you don't have it, though it may be better used to pay for a home renovation or to pay off credit card debt.

If you're looking to borrow $55K, we've got tips on where to apply, how to compare your options, what fees to expect, and when to consider personal loan alternatives.

Compare personal loan rates

Where can I get a $55,000 personal loan?

Personal loans are typically unsecured loans that you can use for almost any expense. You can apply for a $55,000 personal loan at a bank, credit union, or online lender. There are advantages and disadvantages to each option.

Online lenders

Online lenders are typically non-bank lenders that specialize in loans and don't offer deposit accounts. Their advantages include convenient digital applications and fast funding. Some have excellent phone support or live chat, but you can't visit a branch and get help from a loan specialist since online lenders don't have physical locations like banks and credit unions. A few online lenders, including BHG Financial, SoFi, LendingClub, and LightStream, offer $55,000 loan amounts.

Compared to banks, online lenders may offer the advantage of more flexible credit requirements. You may also get a lower rate from an online lender if you have excellent credit, but that's not always the case. You may want to compare rates from different types of financial institutions.

Banks

If your bank offers personal loans, you might appreciate the convenience of going to one institution for all your financial needs. Some banks also offer interest rate discounts on personal loans to existing account holders, plus same-day funding. And you may prefer to get in-person support with your application. Some banks, like SoFi, operate entirely online and offer a quick and easy application process while also providing other financial products and resources.

On average, banks charge higher personal loan interest rates than credit unions. They also tend to have stricter credit and income requirements. Only a few brick-and-mortar banks offer personal loans larger than $50,000 — Wells Fargo is one example, offering loans up to $100,000. Some banks also offer savings-secured loans. For example, Fifth Third Bank offers loans backed by your savings or investments in amounts from $2,000 to $500,000.

Credit unions

Credit unions are member-owned, not-for-profit financial institutions. They typically serve a particular community or profession, but some offer membership to anyone. A credit union personal loan might be a good option if you already belong to a credit union offering personal loans or have credit issues.

“Credit unions are member-focused, which means they often offer lower interest rates and more flexible terms than traditional banks or online lenders,” says Bola Sokunbi, author/founder and CEO of Clever Girl Finance. “They're usually more willing to work with people who have less than perfect credit and tend to provide more personalized service.”

A few credit unions, including Alliant Credit Union and Kinecta Federal Credit Union, offer $55,000 personal loans. A number of credit unions also offer savings-secured loans, including Navy Federal, First Tech Federal, and BECU.

Personal loan interest rates for $55,000 lenders

Four Credible partner lenders currently offer personal loans of $55,000 or more. They each have the following APR ranges. Keep in mind that the lowest APRs are reserved for borrowers with excellent credit, and higher loan amounts can carry higher APRs. That could be why BHG Financial, which offers unsecured loans up to $250,000, may have a higher starting rate than its competitors.

How to compare $55K personal loans

When comparing $55,000 personal loans, pay attention to the features below.

Interest (annual percentage rate)

Interest rates represent the cost of borrowing from a lender. Lenders are required to disclose the annual percentage rate (APR) range for personal loans, which accounts for both the interest rate and upfront fees. APRs provide a more accurate measure of the cost of borrowing money than interest rates alone.

Generally speaking, you should aim for the lowest APR. But the repayment term will also impact your interest rate and total cost. A shorter term often means a lower APR and less overall interest, but a higher monthly payment. A longer term generally means a higher APR and higher interest costs, but a lower monthly payment.

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

Fees

Some lenders charge an origination fee to cover their costs. The fee is typically calculated as a percentage of the loan amount and deducted from the initial loan proceeds, reducing the amount you receive. But some lenders offer personal loans with no origination fee.

You may also pay incidental fees such as late payment fees and returned check fees, which will be detailed in your loan agreement along with any other fees and charges.

Repayment terms

Personal loan repayment terms typically range from two to seven years, but some lenders offer longer terms for specific purposes or large loan amounts. For example:

• BHG Financial offers loans of up to $250,000 and repayment terms up to 10 years.
• LightStream offers terms up to 12 years for boat loans and RV loans and up to 20 years for home improvement loans.

The repayment term is important because it affects your monthly payment and total interest. A shorter term comes with a higher monthly payment, but less interest accrues, making the loan less costly over time. Use a personal loan calculator to find a middle ground between total interest costs and a monthly payment that you can comfortably afford.

Most personal loan lenders don't charge prepayment penalties, so you can generally pay off the loan early. But you could run into problems if the monthly payment is a stretch for your budget and you fail to pay on time.

Total repayment costs

A $55K personal loan with a low monthly payment and a long repayment term may seem more manageable than a loan with a shorter term, but you could end up paying thousands of dollars in interest. You should be aware of the total cost of a personal loan before you sign your loan documents. We'll provide some examples of repayment costs in the next section.

What is the cost to repay a $55,000 loan?

The cost to repay a $55K personal loan depends on the APR and repayment term. For instance, three-year repayment terms typically carry lower APRs than five- and seven-year terms. The table below shows what you might spend in a few different scenarios.

How to get a $55K personal loan

Review your credit score and profile

You'll typically need good credit (if not excellent credit) and sufficient income to get a large personal loan, but there may be exceptions. Check your credit score for free with Credible's credit-monitoring tool to get an idea of what you might qualify for. Also, get a free copy of your credit report from AnnualCreditReport.com and check it for incorrect or outdated information that might be lowering your credit score.

“If you have bad credit, it is probably a good sign that you shouldn't use these types of loans unless it is an absolute emergency,” says Matt Fizell, CFP, owner of Harmony Wealth.

Calculate your estimated monthly payments

Determine how much you can afford to devote to repayment each month. You may also use a personal loan calculator to figure out which APRs and repayment terms would be realistic for your budget.

Research and compare lenders

Consider factors like eligibility requirements, rates and fees, and customer support options. Check reviews online with Trustpilot and the Better Business Bureau to see how lenders compare in customer satisfaction.

Related: How To Compare Personal Loans

Prequalify with multiple lenders

Most lenders allow you to prequalify without impacting your credit. This process provides an estimate of how much you'll qualify for and the APR the lender may offer you. Note that prequalification doesn't represent an offer of credit and that rates and terms of a loan offer may differ from prequalified quotes.

Prepare documentation

Collect documents that prove your identity, income, and employment. For example, you might need to upload W-2s or bank statements and a government-issued ID.

Choose a lender and apply

Of the loan options that work for your budget, pick the one with the lowest total borrowing cost that has a monthly payment you can easily afford. Consider whether you can afford the payment now and through the duration of the loan term. Proceed with the formal application. This typically involves a hard credit inquiry that could lower your credit score by up to 10 points for up to one year.

Review terms, sign, and begin repayment

Read the fine print, ensure you're happy with the final rate and terms, and sign your loan documents to start the funds transfer. You may want to set up autopay right away to prevent any missed payments.

Alternatives to a $55,000 loan

Since there are fewer options for personal loans greater than $55,000, you may want to consider alternatives, such as:

• Home equity loans and home equity lines of credit (HELOCs): These types of credit allow you to borrow against your home equity, and they usually come with lower rates and longer terms than personal loans. The amount of equity you have limits how much you can borrow, and the funding process is longer and requires more upfront fees. There's also a risk of foreclosure if you can't make payments. 
• Personal line of credit: If you don't need $55,000 all at once, you can borrow against an unsecured credit line on an ongoing basis and replenish your credit limit as you make payments. Few banks offer credit lines greater than $50,000, but you'll have more options if you don't need the money in a single draw. 
• Payment plans: If you're using the loan to pay for medical bills, ask your health-care provider about a payment plan. "Most platforms will extend you a non-credit-impacting payment plan to spread out the payments," says Fizell. Some credit card issuers also offer hardship repayment plans if you're struggling to pay down debt, but they don't typically advertise these options, so you'll need to call and ask.
• Combining savings with a smaller loan: There are more options for personal loans of $50,000 or less, especially for people with fair credit. If you can, cover a portion of your expenses with savings and borrow the rest. 
• 401(k) loan: The maximum you can borrow from a 401(k) is up to 50% of your vested balance or $50,000, whichever is less. 401(k) loans have relatively low rates, and you pay the interest back to yourself. But you could owe steep penalties and taxes if you can't pay the loan back.

Learn More: 9 Personal Loan Alternatives