June 25, 2021

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Get a $40,000 Personal Loan: Options for Unsecured Loans

12 min read

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

If you have medical bills, a major home renovation, or another large expense, a personal loan could be an option to cover the cost.

Borrowing a substantial amount of money — such as a $40,000 personal loan — is a big decision, so it’s important to do your homework and consider as many lenders as you can to find the right loan for you.

Here’s what you should know before taking out a $40,000 personal loan:

Where to get a $40,000 personal loan

Below you’ll find some of your options when it comes to different types of personal loan lenders:

Online lenders

If you need to take out a large personal loan, an online lender could be a good option. In many cases, you can apply online in just a few minutes and might receive a decision right away, depending on the lender.

The time to fund for an online personal loan is typically five business days after approval — though some lenders will fund your loan as soon as the next business day.

Credible is partnered with seven online lenders that offer $40,000 personal loans:

Lender Fixed rates Loan amounts
lendingclub

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10.68% – 35.89% APR Up to $40,000
  • Rates: 10.68% – 35.89% APR
  • Loan terms (years): 3, 5
  • Loan amount: $1,000 to $40,000
  • Fees: Origination fee
  • Discounts: None
  • Eligibility: Available in all states except IA
  • Min. income: None
  • Customer service: Phone, email
  • Soft credit check: Yes
  • Min. credit score: 600
  • Time to get funds: Usually takes about 3 days
  • Loan uses: Debt consolidation, paying off credit cards, home improvement, pool loans, vacations, and other purposes

LendingClub personal loans review

Based on a majority of borrowers from LendingClub’s marketing partners who were issued loans between 1/1/19-12/13/19. The time it takes for your loan to be funded may vary.

lightstream

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3.99% – 19.99% APR Up to $100,000
  • Rates: 3.99% – 19.99% APR
  • Loan terms (years): 2, 3, 4, 5, 6, 7 (up to 12 years for home improvement loans)
  • Loan amount: $5,000 to $100,000
  • Fees: None
  • Discounts: Autopay
  • Eligibility: Available in all states except RI and VT
  • Min. income: Does not disclose
  • Customer service: Phone, email
  • Soft credit check: No
  • Min. credit score: 660
  • Time to get funds: As soon as the same business day
  • Loan uses: Credit card refinancing, debt consolidation, home improvement, and other purposes

LightStream personal loans review

LightStream disclosure

marcus

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6.99% – 19.99% APR1 Up to $40,000
  • Rates: 6.99% – 19.99% APR1
  • Loan terms (years): 3, 4, 5, 6
  • Loan amount: $3,500 to $40,0002
  • Fees: None
  • Discounts: Autopay
  • Eligibility: Available in all 50 states
  • Min. income: $30,000
  • Customer service: Phone
  • Soft credit check: Yes
  • Min. credit score: 660
    (TransUnion FICO®️ Score 9)
  • Time to get funds: Many Marcus customers receive funds in as little as five days
  • Loan uses: Credit card refinancing, debt consolidation, home improvement, and other purposes

Marcus personal loans review

1Rate reduction of 0.25% available for AutoPay.

2You may be required to have some of your funds sent directly to pay off outstanding unsecured debt.

3After making 12 or more consecutive monthly payments, you can defer one payment as long as you have made all your prior payments in full and on time. Marcus will waive any interest incurred during the deferral and extend your loan by one month (you will pay interest during this extra month). Your payments resume as usual after your deferral. Advance notice is required. See loan agreement for details.

payoff

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5.99% – 24.99% APR Up to $40,000
  • Rates: 5.99% – 24.99% APR
  • Loan terms (years): 2, 3, 4, 5
  • Loan amount: $5,000 to $40,000
  • Fees: Origination fee
  • Discounts: None
  • Eligibility: Available in all states except MA, MS, NE, NV, and OH
  • Min. income: None
  • Customer service: Phone, email, chat
  • Soft credit check: Yes
  • Min. credit score: 640
  • Time to get funds: As soon as 2 – 5 business days after verification
  • Loan uses: Debt consolidation and credit card consolidation only

Payoff personal loans review

prosper

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6.95% – 35.99% APR Up to $40,000
  • Rates: 6.95% – 35.99% APR
  • Loan terms (years): 3, 5
  • Loan amount: $2,000 to $40,000
  • Fees: Origination fee
  • Discounts: None
  • Eligibility: Available in all states except IA, ND, WV
  • Min. income: None
  • Customer service: Phone, email
  • Soft credit check: Yes
  • Min. credit score: 640
  • Time to get funds: On average, within 5 days of accepting your offer
  • Loan uses: Debt consolidation, home improvement, vehicles, small business, new baby expenses, and other purposes

Prosper personal loans review

sofi

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5.99% – 18.83% APR Up to $100,000
  • Rates: 5.99% – 18.83% APR
  • Loan terms (years): 2, 3, 4, 5, 6, 7
  • Loan amount: $5,000 to $100,000
  • Fees: None
  • Discounts: Autopay
  • Eligibility: Available in all states except MS
  • Min. income: Does not disclose
  • Customer service: Phone, email
  • Soft credit check: Yes
  • Min. credit score: Does not disclose
  • Time to get funds: 3 business days
  • Loan uses: Solely for personal, family, or household uses

SoFi personal loans review

upstart

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6.94% – 35.97% APR Up to $50,000
  • Rates: 6.94% – 35.97% APR
  • Loan terms (years): 3, 5
  • Loan amount: $1,000 to $50,000 ($3,005 minimum in GA; $6,005 minimum in MA)
  • Fees: Origination fee
  • Discounts: Autopay
  • Eligibility: Available in all states except IA and WV
  • Min. income: Does not disclose
  • Customer service: Email
  • Soft credit check: Yes
  • Min. credit score: 580
  • Time to get funds: Within a day of clearing necessary verifications
  • Loan uses: Debt consolidation, credit card refinancing, home improvement, and other purposes

Upgrade personal loans review

upstart

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8.13% – 35.99% APR4 Up to $50,000
  • Rates: 8.13% – 35.99% APR4
  • Loan terms (years): 3 to 5 years4
  • Loan amount: $1,000 to $50,0005
  • Fees: Origination fee
  • Discounts: None
  • Eligibility: Available in all states except IA and WV
  • Min. income: $12,000
  • Customer service: Phone, email
  • Soft credit check: Yes
  • Min. credit score: 580
  • Time to get funds: As soon as 1 – 3 business days6
  • Loan uses: Payoff credit cards, consolidate debt, take a course or bootcamp, relocate, make a large purchase, and other purposes

Upstart personal loans review

4The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 15% and 36 monthly payments of $33 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

5This offer is conditioned on final approval based on our consideration and verification of financial and non-financial information. Rate and loan amount are subject to change based upon information received in your full application. This offer may be accepted only by the person identified in this offer, who is old enough to legally enter into contract for the extension of credit, a US citizen or permanent resident, and a current resident of the US. Duplicate offers received are void. Closing your loan is contingent on your meeting our eligibility requirements, our verification of your information, and your agreement to the terms and conditions on the www.upstart.com website.

6If you accept your loan by 5pm EST (not including weekends or holidays), loan funds will be sent to your designated bank account on the next business day, provided that such funds are not being used to directly pay off credit cards. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.

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All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | Read more about Rates and Terms
  • LendingClub offers personal loans ranging from $1,000 to $40,000. It’s also one of the few lenders that provides cosigned personal loans, which could make LendingClub a good choice if you have less-than-perfect credit.
  • LightStream could be a good option if you need fast loan funding. If you’re approved, you might get your money as soon as the same business day.
  • Marcus personal loans are available for $3,500 up to $40,000. Keep in mind that if you make 12 consecutive, on-time payments on a Marcus loan, you can defer one of your payments with no interest — though this will extend your repayment term by one month.
  • Payoff personal loans are specifically designed for consolidating credit card debt and range from $5,000 up to $40,000.
  • Prosper offers personal loans ranging from $2,000 to $40,000. Keep in mind that a Prosper loan has to be funded by its investors, which might extend the loan funding time.
  • SoFi personal loans are available for up to $100,000, which could make it a good choice for home improvement or debt consolidation loans. If you take out a loan with SoFi, you’ll also enjoy additional benefits, such as unemployment protection.
  • Upgrade has less stringent credit requirements than other lenders and so might be a good option if you’re looking for personal loans for bad credit. With Upgrade, you can borrow up to $50,000.
  • Upstart could be another good choice if you have less-than-stellar credit or a thin credit history. With Upstart, you can borrow a $1,000 personal loan up to a $50,000 personal loan.

Learn More: Where to Get a Personal Loan

Banks

Banks often offer loyalty rate discounts on personal loans if you already have a checking or savings account with them. You might qualify for another discount if you sign up for autopay on your personal loan.

Keep in mind: Some banks like Chase and Bank of America don’t offer personal loans, but many do.

For example, Citibank offers personal loans up to $50,000 (though you’ll have to apply in person at a branch to borrow more than $30,000). TD Bank and Wells Fargo could also be options for a $40,000 personal loan.

Check Out: How to Get a Personal Loan

Credit unions

Because credit unions are nonprofit organizations, they often offer lower rates than banks. While credit union loans typically have lower personal loan limits, there are some that offer higher loan amounts.

Here are a few credit unions that offer $40,000 personal loans. Note that none of these are Credible partners.

Keep in mind: You’ll need to be a member of the credit union to take out a personal loan with them. Qualifying for membership might require living in a certain area, working in a specific field, or joining an organization.

Learn More: $20,000 Personal Loan

What to consider when comparing $40,000 loans

Before taking out a personal loan, be sure to consider the following factors to find the right loan for your needs:

  1. Interest rates
  2. Fees
  3. Repayment terms
  4. Monthly payment
  5. Total repayment costs

1. Interest rates

The interest rate is how much you’ll pay in interest each year, expressed as a percentage. The higher the rate, the more you’ll pay in interest over time — adding to the loan’s cost.

Most personal loans have fixed interest rates, which stay the same for the entire length of your repayment term. There are also some personal loans available with variable rates, which can fluctuate over time.

Keep in mind: You’ll generally need good to excellent credit to qualify for best interest rates. If you have poor credit and can wait to take out a loan, it might be a good idea to work on building credit before you apply.

It’s also a good idea to consider how much a loan will cost you over time. You can estimate how much you’ll pay for a loan using our personal loan calculator below.

Enter your loan information to calculate how much you could pay

Total Payment
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Total Interest
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Monthly Payment
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With a
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loan, you will pay
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monthly and a total of
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in interest over the life of your loan. You will pay a total of
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over the life of the
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2. Fees

Some lenders charge fees with personal loans, which could add to your overall loan cost. Here are a few common fees you might come across:

  • Origination fees: Many lenders charge origination fees, which are a percentage of your loan amount.
  • Late fees: If you miss a payment, you might be charged additional fees as a penalty.
  • Prepayment fees: Some lenders will charge you a penalty if you pay off your loan early, though these fees are uncommon for personal loans.

Tip: Be sure to consider any lender fees as you shop around for a loan. Keep in mind that if you take out a loan with one of Credible’s partner lenders, you won’t have to worry about prepayment penalties.

Check Out: No-Credit-Check Personal Loans

3. Repayment terms

You’ll generally have one to seven years to repay a personal loan, depending on the lender. It’s usually a good idea to pick the shortest loan term you can afford to save on interest charges. Plus, you might get a better rate with a shorter loan term.

Keep in mind: Choosing a longer repayment term could get you a lower monthly payment, which might fit your needs better if you need less of a strain on your budget. Just remember that you’ll pay more in interest over time with a longer term.

4. Monthly payment

Before you agree to a loan’s terms, be sure that you can afford the monthly payments. If it’s too much for your budget, you might consider opting for a longer repayment term.

Keep in mind: While most personal loans are unsecured — meaning lenders can’t seize your property if you fall behind — missing loan payments could severely damage your credit. You could even end up in collections.

Learn More: Home Equity Loan vs. Personal Loan

5. Total repayment costs

When you take out a loan, review the federal Truth in Lending Act (TILA) disclosure provided by your lender. By law, lenders are required to give you this form that discloses all the terms of your loan.

Pay special attention to these two numbers:

  1. The finance charge: This is the cost of your loan, including interest and fees, assuming you make all your payments on time.
  2. Total payments: This is the sum of all the payments you’ll make to pay off your loan, including the loan principal and finance charges.

Check Out: Best Personal Loans

Cost to repay a $40k loan

The interest rate, monthly payment, and loan term will affect how much you’ll repay over the life of your loan. Here’s what payments on a $40,000 personal loan might look like with varying loan terms and interest rates:

Loan term Interest rate Monthly payment Total interest
2 years 5% $1,754.86 $2,116.53
3 years 6% $1,216.88 $3,807.59
4 years 7% $957.85 $5,976.79
5 years 8% $811.06 $8,663.35
6 years 9% $721.02 $11,913.55
7 years 10% $664.05 $15,779.98
Note: Interest rates are hypothetical to demonstrate how they might affect your total repayment.

If you’re ready to find your $40,000 personal loan, remember to consider 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.


About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.99-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.