Medical bills, home repairs, weddings — whether you’re facing an unexpected expense or you’re planning to make a major purchase, sometimes debt is a necessity. When that happens, getting a personal loan can be a better solution than using a credit card, especially if you need a large amount of funds relatively quickly.
That’s because according to the Federal Reserve, the average annual percentage rate (APR) on a 24-month personal loan as of February 2024 was 12.49%, compared to 21.59% for credit cards — that's nine percentage points lower on a personal loan, on average. (On a $40,000 five-year loan, nine percentage points can mean an extra $10,000 plus saved or spent!)
In this article, we’ll specifically cover the types of $40,000 loans that are available, what you need to get one, and what payments could look like.
Compare interest rates for $40,000 loans
4.24.2
Credible rating
Fixed (APR)
6.99% - 25.49%
Loan Amounts
$5000 to $100000
Min. Credit Score
700
Check Rates
on Credible’s website
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Overview
Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 12 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.
Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.
Loan amount
$5,000 to $100,000
Repayment terms
2 - 12 years, depending on loan purpose
Fees
None
Discounts
Autopay
Eligibility
Available in all states except RI and VT
Min. income
Does not disclose
Customer service
Soft credit check
No
Time to get funds
As soon as the next business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full review
3.93.9
Credible rating
Fixed (APR)
7.80% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
620
Check Rates
on Credible’s website
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Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Read full review
4.44.4
Credible rating
Fixed (APR)
-
Loan Amounts
$2500 to $40000
Min. Credit Score
660
Check Rates
on Credible’s website
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Overview
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
Loan amount
$2,500 - $40,000
Repayment terms
3 - 7 years
Fees
Late fee
Discounts
None
Eligibility
Available in all 50 states
Min. income
$40,000
Customer service
Phone
Soft credit check
Yes
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Read full review
4.64.6
Credible rating
Fixed (APR)
8.49% - 17.99%
Loan Amounts
$600 to $50000
Min. Credit Score
760
Check Rates
on Credible’s website
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Overview
PenFed is a credit union that offers personal loans to applicants with good credit. Though you'll need to become a member to receive a loan, membership is open to everyone. PenFed shines with no origination fees, small available loan amounts, and low interest rates. If you don't have a FICO score above 700, you may not qualify on your own, but can apply with a cosigner with good credit — which is not something most lenders offer.
PenFed doesn't have a minimum income amount, and offers live chat and an entirely online loan application process.
Loan amount
$600 to $50,000
Fees
Unsuccessful payment fee, late fee
Discounts
None
Eligibility
Does not disclose
Min. income
No flat restriction
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically 1 to 2 business days after verification
Loan uses
Debt consolidation, home improvement, credit card refinancing
Repayment terms
12 to 60 months
Read full review
4.54.5
Credible rating
Fixed (APR)
8.49% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
600
Check Rates
on Credible’s website
View Details
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Read full review
44
Credible rating
Fixed (APR)
8.98% - 35.99%
Loan Amounts
$1000 to $40000
Min. Credit Score
660
Check Rates
on Credible’s website
View Details
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Loan amount
$1,000 to $40,000
Fees
Origination fee
Discounts
None
Eligibility
Available in all 50 states
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
Within 3 days
Loan uses
Debt consolidation, paying off credit cards
Read full review
4.94.9
Credible rating
Fixed (APR)
8.99% - 29.99%
Loan Amounts
$5000 to $100000
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
View Details
Overview
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesn't require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you don't have good credit. You also won't be able to apply with a cosigner, since SoFi doesn't accept cosigners; nor does it offer secured personal loans.
Loan Amount
$5,000 to $100,000
Repayment terms
2 - 7 years
Fees
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Discounts
Autopay, direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Phone, email, live chat
Soft credit check
Yes
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Read full review
44
Credible rating
Fixed (APR)
8.99% - 35.99%
Loan Amounts
$2000 to $50000
Min. Credit Score
600
Check Rates
on Credible’s website
View Details
Overview
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 8.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Read full review
4.34.3
Credible rating
Fixed (APR)
11.69% - 35.99%
Loan Amounts
$1000 to $50000
Min. Credit Score
560
Check Rates
on Credible’s website
View Details
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Read full review
3.93.9
Credible rating
Fixed (APR)
11.72% - 17.99%
Loan Amounts
$3000 to $40000
Min. Credit Score
640
Check Rates
on Credible’s website
View Details
Overview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Loan amount
$5,000 to $40,000
Fees
Origination fee
Discounts
None
Eligibility
Available in all states except MA, MS, NV, and OH
Min. income
None
Customer service
Phone, email, chat
Soft credit check
Yes
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Read full review
44
Credible rating
Fixed (APR)
-
Loan Amounts
$20000 to $200000
Min. Credit Score
660
Check Rates
on Credible’s website
View Details
Overview
BHG Money stands out for offering the largest loan amounts — up to $200,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher. However, if you have a cosigner that meets these requirements, BHG will consider your application.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 2% and 4%, depending on your financial profile. Loan funds are available within three to 14 days of loan approval. Note that you can't prequalify with BHG.
Loan amount
$20,000 - $200,000
Repayment terms
3 - 10 years
Fees
Origination fees, late fees
Discounts
None
Eligibility
Available in all states except Maryland and Illinois
Min. income
$100,000
Customer service
Email, phone
Soft credit check
Not on lender's site
Time to get funds
In as few as 5 days
Loan uses
Debt consolidation, baby (adoption), engagement ring financing, moving (relocation), business, home improvement, special occasion, cosmetic procedures, major purchase, taxes, credit card refinancing, medical expenses, vacation, wedding, other
Read full review
3.73.7
Credible rating
Fixed (APR)
14.30% - 35.99%
Loan Amounts
$3500 to $40000
Min. Credit Score
640
Check Rates
on Credible’s website
View Details
Loan amount
$3,500 to $40,000
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Discounts
None
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, WY, and all U.S. Territories
Min. income
$1,000 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation, credit card refinancing
Read full review
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Types of $40,000 loans
There are two main types of loans you could go with here: Traditional personal loans, which are unsecured, and secured loans.
Personal loans
To get an unsecured personal loan, lenders examine your credit profile — including debts, income, and credit score — to determine your eligibility as well as the rates and terms they’ll offer.
Most personal loans are considered unsecured because they don’t require collateral. The lender pays the loan amount directly to you (or sometimes directly to your creditors, in the case of debt consolidation). You’re then responsible for making monthly payments over the course of the loan’s term. Once the term ends, you’ll have repaid the amount you borrowed, plus interest and fees.
Pros
- Lump-sum funding
- No collateral required
- Quick funding
- Wide selection of lenders to choose from
Cons
- Approval relies largely on credit
- Adds a monthly payment to your budget
- Rates and fees could be high, depending on the lender and your credit and income
Secured loans
These require you to use a valuable item or asset as collateral. One example of a secured loan is a home equity loan, which uses your home as collateral. Some personal loans also fall into the secured loan category. With these types of loans, the collateral acts as a safety net for the lender. If you stop payments, the lender can seize and sell your asset in order to recoup its money.
You’ll generally need to get your collateral assessed for value in order to qualify for a secured loan. This could be as simple as looking at a bank statement, for a CD loan, for instance, or as involved as getting a full home appraisal.
Pros
- Can be easier to qualify for than unsecured loans
- Home equity loans may provide larger loan amounts than personal loans
Cons
- Requires you to have a valuable asset, such as a home or vehicle
- Adds a monthly payment to your budget
- Possibility of losing collateral if you stop payments
- May take longer to approve and fund, relative to an unsecured loan
Learn More: Secured vs. Unsecured Personal Loans
Where to get a $40,000 loan
There are three main sources for personal loans of this size:
- Online personal loan lenders: These can be a solid option if you require quick cash. For example, the typical personal loan funding time for online lenders is anywhere from the next business day to five days after you’re approved. You can also prequalify with most personal loan lenders online, which gives you an idea of the rates and terms you’ll qualify for before submitting a full application.
- Traditional banks: If you have a long-standing relationship with your bank, you may be able to score more favorable loan terms. However, it may also have higher minimum credit score requirements to qualify. Plus, it can take up to a week to get approved for a loan with a bank.
- Credit unions: These typically have lower rates than banks, but you’ll generally need to be a member to apply. The timeline to loan funding is generally 1 to 7 days.
Learn More: Where Can I Get a Personal Loan?
How to get a $40,000 loan
There are several steps you’ll need to complete to apply for a personal loan:
- Gather necessary documentation: Most lenders will require certain information, such as proof of your income, address, and identity. Having things like your government-issued ID and pay stubs, tax returns, or bank statements on hand during the application process will help speed things up.
- Check your credit report: Not only will this show where your credit score stands, but you can also check for errors that may be dragging down your score. You can check your report weekly on AnnualCreditReport.com for free. Keep an eye out for identity errors, incorrect account statuses (such as a closed account that’s listed as open), and balance or credit limit errors.
- Use a lender platform: If you want to go with a personal loan from a lender that isn’t your bank or credit union, a lending platform like Credible can be a solid place to start. Doing so will allow you to quickly compare rates and terms associated with each lender, and prequalify with multiple lenders at once by filling out a single questionnaire.
- Get prequalified: Prequalification allows you to see if you’re likely to be approved for a loan, and if so, what your rates and terms could look like. It won’t hurt your credit score, but keep in mind that prequalification is not a guarantee of the terms you’ll get, or that you’ll ultimately be approved. When you formally apply for a loan, the lender will conduct a hard credit check that can temporarily lower your score.
- Compare costs: A loan’s APR is a better indicator of cost than the raw interest rate alone, since it includes upfront costs like administrative or origination fees. Also consider other fees the lender charges, such as late fees, as well as any discounts offered.
- Consider a cosigner: If you find it difficult to qualify, or the APRs you’re seeing from prequalifying are high, you may want to consider looking at loans that allow cosigners. Depending on the situation, a cosigner’s good credit could help you qualify or potentially get better terms. (Asking someone to cosign is a big deal, as it means they’ll be responsible for payments if you stop making them. Not all lenders accept cosigners.)
- Apply for the loan: Once you’ve selected your ideal lender, apply for the loan. The timeline from application to approval and payment will depend on the lender.
- Review the loan agreement and sign: If you’re approved, the lender will submit a loan agreement for your review and signature. Once signed, the lender will disburse the funds, typically within days, directly into your bank account.
Learn More:
- How To Get a Personal Loan
- APR vs. Interest Rate on a Personal Loan
$40,000 loan payments
Overall, personal loan interest rates have been on the rise since late 2022, which means you’re likely to pay more to borrow now than you would have then. But your credit score, as well as the term and loan amount, will have a significant impact on how much you pay, too. Here are a few different credit score profiles and related loan costs:
Fair credit
Let’s say you have a FICO score of 600 (that means your score is considered to be in the “fair” category). The average interest rate for applicants with a credit score between 600 and 639 is around 29% for a five-year loan, based on the Credible data from January 2024. That would translate to a $1,270 monthly payment for a $40,000 loan with those terms. That means you’d pay a whopping $36,180 in interest over the life of the loan.
Very good credit
Those with a credit score of 780 (which is considered to be “very good” credit), however, might qualify for a 19% rate on a five-year loan. That translates to a $1,038 monthly payment, which includes a total of $22,257 in interest.
Excellent credit
Those with the best credit saw the best terms on three-year personal loans at an average rate around 13.5%. This equates to a monthly payment of $1,357 per month, but only $8,867 in interest.
Extending the term of your loan could help reduce the monthly payment amount, but keep in mind that would also mean you’d increase the total amount you’d end up paying in interest. Ultimately, the best term for you will be both affordable — from a monthly payment standpoint — and minimize the amount you’ll pay for the loan.
Personal Loans Calculator
If you decide to take out a personal loan, use a personal loan calculator to determine interest charges over time.
$40,000 loan FAQ
How to get $40,000 loan
To get a loan of this size, you’ll need to meet lenders’ minimum credit score and income requirements. Lenders also typically look at your debt-to-income (DTI) ratio, which measures your monthly debt payments to your monthly income. In general, you’ll want to have a credit score of at least 670 and a DTI ratio below 35% to qualify and get good rates.
Where can I get a $40,000 personal loan?
You can find $40,000 loans from banks, credit unions, and online lenders. There are different pros and cons associated with each (such as available rates, discounts, and terms), so you’ll want to start your search more broadly before narrowing things down to a preferred lender.
How to get a $40,000 loan with bad credit
Getting a $40,000 loan with bad credit is difficult, but could be possible depending on the lender — some cater to borrowers with lower credit scores — and your overall financial situation. That said, a lower credit score will usually mean you’ll have a higher APR, meaning you’ll pay more long term. You may want to consider lenders that allow you to add a cosigner or secure the loan with collateral to qualify or gain more favorable terms.
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Meet the expert:
Devon Delfino