How to Get a Large Personal Loan

By Stephanie Mojica

  • Overview

    Getting a large personal loan usually requires excellent credit, a stable job and a solid income. It is also a good idea to keep your credit usage low. For example, if you have $20,000 in available credit, you should use no more than $10,000 on your credit cards, or 50 percent usage of existing credit. Using only 20 percent to 33 percent of your credit limit is even better. No recent late payments or collections on your credit file is another must when you are applying for a large personal loan.
    • Step 1

      Write a cover letter to go with your loan application to increase your chances of getting a large personal loan. In it, explain why you need the loan, how your income and budget enable you to efficiently pay it back as promised, how long you have been at your job and other helpful information. This really helps when dealing with local and out-of-town lenders because it can give the loan officer more information than a simple credit score.
    • Step 2

      Apply with local banks, credit unions and finance companies first. They likely would be more willing to extend large personal loans to people who live in their areas because in the event that the payments are not made, it would be easier to take legal action.


    • Step 3

      Consider having a friend or boss serve as a character reference for your large personal loan application. This is usually far more effective with local lenders than with larger, national companies that are not dealing with you as a community member. Only use this method if you are absolutely sure you can pay the loan back because it could cause you and the other person a lot of unnecessary embarrassment if you can't.
    • Step 4

      Visit websites of national lenders if it seems you are not going to be able to get a large personal loan within your own community. A few links to lenders that often can issue such loans is noted in the Resources section near the end of this article.
    • Step 5

      Consider getting a co-signer or putting up collateral, such as a house, paid-off car, stocks or retirement accounts. This can help many people get a large personal loan that might otherwise be rejected.
    • Skill: Challenging
    • Ingredients:
    • Loan application
    • Cover letter
    • Character reference (optional)
    • Collateral (optional)
    • Tip: Remember that a large personal loan is a serious financial obligation and can destroy your credit if not paid on time.
    • Tip: Do not give up hope on getting a large personal loan if the first bank declines you. If you have decent credit, a good job and can add any of the other factors mentioned in the article, such as collateral or references, someone will likely extend the funds you need.

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