Need a $75,000 personal loan? What to know

How much will you pay for a $75,000 personal loan?

How much you’ll pay for a $75,000 loan mostly depends on your credit and the repayment term you choose, as these will both play a role in determining your interest rate. In general, the better your credit score, the lower the interest rate you’ll get. 

For example, here’s how credit scores affected the average personal loan interest rates for borrowers who prequalified for a five-year personal loan through Credible in March 2021:

  • 720 to 779: Borrowers with a credit score in this range were offered an average 14.39% APR on five-year loans. If you took out a $75,000 personal loan with this rate and term, you’d have a $1,760 monthly payment and a total repayment cost of $105,619.
  • 640 to 679: Borrowers with these scores received an average 22.93% APR on loans with a five-year term. If you took out a $75,000 personal loan with this rate and term, you’d have a $2,111 monthly payment with an overall loan cost of $126,676.
  • 600 to 639: In this credit score range, borrowers were offered an average 26.92% APR. If you took out a $75,000 personal loan with this rate and term, you’d pay $2,287 each month and would end up with an overall cost of $137,193.

As you can see, your credit score plays a major role in determining your interest rate and overall loan cost. If you decide to take out a personal loan, be sure to consider how much it will cost you so you can prepare for any added expenses. You can use Credible’s personal loan calculator to see how different interest rates and loan terms will affect your monthly payment and overall cost. 

What credit score do you need for a $75,000 personal loan?

Generally, you need a credit score of at least 620 to qualify for a personal loan. However, if you’re looking to borrow as much as $75,000, you’ll likely need very good to excellent credit — usually meaning a score of 740 or higher. Having this kind of credit score shows the lender that you’re less likely to default on the loan, which gives you a better chance of getting approved.

If you have less-than-perfect credit, it could be a good idea to spend some time improving your credit before you apply for a personal loan. A few ways to potentially boost your credit include:

  • Making on-time payments: This can add to your overall positive payment history
  • Paying down credit card balances: This might improve your credit utilization
  • Avoiding new loans: This could increase your credit usage and raise your debt-to-income ratio

Before you apply for a personal loan, it’s a good idea to do your research and compare eligibility requirements from various lenders. This way, you see if your credit meets the mark — or if you should build it up first. 

If you’re ready to apply, remember to consider your loan options from as many lenders as you can to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes

Alternatives to a $75k personal loan

A personal loan isn’t your only option for borrowing $75,000. If you’re a homeowner, here are a few other alternatives to consider:

  • Home equity loan: This is a type of installment loan that lets you tap into the equity of your home. If you’re comparing a personal loan vs. a home equity loan, keep in mind that you might get a lower interest rate on a home equity loan because it’s secured by your house. However, this also means you could lose your home if you fail to make your payments.
  • HELOC: A home equity line of credit (HELOC) is another way to access your home’s equity. However, unlike a home equity loan, a HELOC is a type of revolving credit that you can repeatedly draw from and pay off. HELOCs also come with their own risks to keep in mind — the biggest being that you risk losing your house if you default on the loan.
  • Cash-out refinance: This lets you refinance your mortgage for more than what you owe while getting the difference in a lump sum to use as you wish. While this might sound appealing, it’s important to think about the pros and cons of a cash-out refinance first. For example, while it might come with lower interest rates, you’ll also have to pay closing costs that generally range from 2% to 5% of your loan amount.


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