Uncovering the Typical Personal Loan Size
Discover the average personal loan amount, providing insights into the borrowing trends and amounts commonly sought by consumers.
The typical personal loan size varies depending on the lender and the borrower's qualifications. However, most personal loans range from $1,000 to $50,000. Some lenders may offer personal loans up to $100,000 or more.
The amount of money you can borrow with a personal loan depends on a number of factors, including:
- Your credit score
- Your income
- Your debt-to-income ratio
- The purpose of the loan
If you have a good credit score and a low debt-to-income ratio, you may be able to qualify for a larger personal loan. If you have a lower credit score or a higher debt-to-income ratio, you may be limited to a smaller personal loan.
Here are some examples of typical personal loan sizes for different purposes:
- Debt consolidation: $5,000 to $25,000
- Medical expenses: $2,000 to $10,000
- Home improvement: $5,000 to $20,000
- Major purchase: $5,000 to $25,000
If you are considering getting a personal loan, it is important to compare offers from different lenders. You should also read the fine print carefully before you sign any loan agreement.
Here are some tips for finding the best personal loan:
- Shop around and compare offers from multiple lenders.
- Consider the interest rate, fees, and repayment terms.
- Make sure the lender is reputable.
- Read the fine print carefully before you sign any loan agreement.
Personal loans can be a good way to finance a variety of expenses. However, it is important to understand the terms and conditions of the loan before you apply.
What Is the Average Personal Loan Amount?.
There is no single "average" personal loan amount, as it can vary significantly depending on the borrower's needs, credit profile, and other factors. However, here are some general guidelines on typical personal loan amounts:
- Smaller personal loans (under $5,000) are quite common. These may be used for things like medical bills, car repairs, or other unexpected expenses.
- Loans in the range of $5,000 to $15,000 are also very common. These medium-sized loans can be used to consolidate debt, finance a vacation, or make home improvements.
- Larger personal loans of over $15,000 are less frequent but may be obtained by those with excellent credit. These larger loans may be used to pay for big expenses like a wedding, adoption costs, or major home renovations.
- According to data from the Federal Reserve, the average personal loan amount as of March 2022 was $16,458. This number has been steadily rising over the past decade, as lenders become more willing to offer larger loans.
- The average loan amount also tends to correlate with income level. For example, in 2019 the average loan for those earning $20,000-$40,000 was around $7,000. For incomes of $100,000-$150,000, the average was around $17,000.
So in summary, while there is a wide range, typical personal loan amounts fall somewhere between $5,000 to $15,000 for most borrowers. Those with higher incomes and strong credit scores can usually qualify for larger loan amounts if needed. The average across all loans is currently around $16,500.