Most personal loan providers have limits on how much they can offer. But in reality, these don’t apply to all borrowers. How much you can actually borrow depends on a wide range of factors like your financial situation and credit history.
There are no guarantees you’ll be approved for the loan amount you’re seeking, but these tips may help you get the amount you need:
Improve your credit. A higher credit score will generally translate to better loan terms. If you’re after a large amount of money, a good or excellent credit score may get you the loan you want.
Lower your debt-to-income ratio. Paying down your existing debts will lower your expenses and show that you can afford to take out a larger loan.
Wait until you have established employment. Having a secure source of income, especially if it’s with a distinguished employer, can help show lenders you’re able to pay for your loan.
Look into a secured loan. If you have the collateral available, you may be able to borrow a secured loan for a larger amount. This is because lenders are less likely to lose their money should you default on the loan.
However, it won’t always be in your best interests to borrow up to your maximum limit. You may find it hard to afford your repayments, or may end up paying unnecessary interest if you borrow more than you need.