Need a $200k Personal Loan? Here’s How to Borrow a Lot of Money

Securing a $200,000 personal loan is certainly possible, but it won’t be easy. The first challenge will be finding a lender willing to loan you such a large amount, as $100,000 personal loans are already fairly uncommon. And even if you do find one, the qualification requirements will likely be so stringent that you might be unable to qualify. Fortunately, you can still borrow a large sum, but you might need to take out multiple personal loans or rely on a different type of loan product.

Key Takeaways

• You may be unable to find a personal loan for $200,000, but with a strong credit profile, you could still get a personal loan of up to $100,000. 
• In order to boost your chances of qualifying for a large personal loan, consider reducing your outstanding debt, putting a valuable asset down as collateral, or getting a co-signer.
• Rather than just getting one large personal loan, you could instead take out several smaller ones and/or use a different kind of loan product.

5 Steps for Getting a Large Personal Loan

Personal loan limits vary by lender. However, many will let you borrow up to $40,000 or $50,000, depending on your creditworthiness. In a handful of cases, you may even be able to borrow up to $100,000, but this would require top-notch credit. Unlike secured loans, unsecured personal loans (the more common variety) aren’t backed by any collateral; without something to offset the credit risk, lenders are typically only willing to offer loans in relatively small amounts.

To get a large personal loan on the best possible terms, follow these five steps.

1. Review Your Finances

Start by making sure your financial house is in order. To qualify for a personal loan, you need a good credit score, a stable income, and a manageable amount of outstanding debt. 

According to credit reporting agency Experian, you generally need a credit score of at least 580 to qualify for a personal loan, but you’ll likely need an even higher score if you want to borrow a sizable sum.

2. Compare Multiple Lenders

Most banks and credit unions offer personal loans. With so many lenders to choose from, it’s important to narrow down your choices to a reputable few. Start by comparing their online reviews and ratings, and look for a proven track record of satisfied customers.

In addition, pay attention to lenders’ maximum loan limits, fees, and other loan requirements. The sooner you rule out incompatible lenders, the less time you’ll waste trying to find the right one.

3. Pre-Qualify and Compare Loan Offers

Once you have a shortlist of lenders, try to pre-qualify with each one that will let you. This typically involves providing a few basic details about yourself, your finances, and your desired loan amount. The lender will then run a soft credit check to determine your eligibility.

While not a loan guarantee, pre-qualification gives you an estimate of the loan amount, interest rate, and repayment terms you’ll be provided. Compare different offers and choose the best one.

4. Gather Your Documents

In order to approve you for a personal loan, lenders typically require you to share:

• A copy of your driver’s license, passport, or other form of identification
• W-2 forms, tax returns, pay stubs, or other form of income verification
• Information about your bank account, such as account and routing numbers

Check with the lender about which documents they require before moving on to the next step.

5. Submit an Application

Finally, submit your loan application with the required documents. You can usually do this online in a few minutes. The lender will then perform a hard credit check and review your credit report. If approved, you could receive the loan funds in as little as a day, depending on the lender.

Can You Get a Large Personal Loan With Bad Credit?

Don’t have the best credit? You may still be able to get a large personal loan by pulling some additional levers. Here are a few to consider.

Put Down Collateral

Though most personal loans are unsecured, sometimes you can get a secured one by collateralizing a valuable asset, such as a savings or CD account. This gives the lender some protection against loss in the event you default on the loan, which could help you qualify for better loan terms.

Lower Your DTI Ratio

Your debt-to-income (DTI) ratio divides your monthly debt payments by your monthly income. For example, if each month you make $2,000 in debt payments and earn $6,000, your DTI would be 33% ($2,000 / $6,000). By finding ways to reduce your monthly debt obligations, you can lower your DTI ratio and show lenders that you can afford a larger loan. 

Get a Co-Signer

A co-signer is someone who agrees to be responsible for repaying the loan if you default. Essentially, they’re guaranteeing the loan with their own credit profile, which can be a great way to offset a poor credit score.

Improve Your Credit

Finally, you can always improve your credit by paying your bills on time, reducing debt, and reviewing your credit report for any errors that you can dispute. This takes time, but it can both help you qualify for a larger loan and improve your financial situation in the long term. 

Alternatives to Personal Loans

If you still can’t get a large personal loan (or want to explore other options), there are a few different ways to borrow a lot of money. Consider any combination of the following.

More Than One Personal Loan

There’s no limit to how many personal loans you can have across different lenders. By securing multiple smaller loans, you might reach your goal of borrowing $200,000. Just know that each individual loan will increase your DTI ratio, which could make it harder to qualify for the other loans.

Multiple Credit Cards

Credit cards are revolving lines of credit that let you borrow up to a certain limit. High credit limits across multiple cards could cover your needs, but beware of the cost. As of Feb. 14, 2025, the average credit card annual percentage rate (APR) was 24.20%.

Home Equity Loan or HELOC

If you own a home, consider tapping into your equity with a home equity loan or a home equity line of credit (HELOC). Since these products are backed by your house, both tend to have lower interest rates than unsecured loans. The main difference between them is that a home equity loan provides a lump sum, while a HELOC is a revolving credit line that works similar to a credit card.

Note

The danger with home equity loans and HELOCs is that, should you default, the lender may foreclose on your home to recoup their losses.

The Bottom Line

Borrowing a sum as large as $200,000 can be challenging. However, by getting your finances in order, shopping around for the best offers, and exploring additional lending options, you may be able to borrow more than you'd expect. Just make sure you have a solid repayment strategy in mind to ensure you can afford to repay that much debt.