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The Sun
10 hours ago
- Automotive
- The Sun
Used convertibles UK: Find out which used soft-tops you are eligible for this summer, from Mazdas to Mercs.
SUN'S out, funs out – it's time to make that dream of a convertible car a reality. While car experts will tell you spring is the perfect time to bag a convertible car bargain, you can still find great deals in summer. 12 FIND HERE Sellers in a crowded market are still itching for the cash and can often reduce costs to make a deal. No cash? No worries. Buyers can get a boost with Sun Motors Finance, an affordable and accessible way to access cash to buy a new car. We're working with some of the UK's best lenders to provide every driver with access to the low-cost credit they need to pick up a dream car. PCP Representative Example - Total Cash Price £6995 Deposit £2000 Amount of Credit £4995 47 Monthly Payments £95.09 Total Amount Payable £8834.23 Fixed Rate of Interest 6.715% Optional Final Payment £2365 Duration of Agreement 48 Months Annual Mileage Limit 10,000 Miles APR (Representative) 12.9% There's no waiting, either. You'll get an instant decision on eligibility and affordability in just 60 seconds. Whatever the season, when you're buying a convertible, you'll want to do some research to find the right make, model, and specification before parting with your pounds. In this guide, we're going to explain why spring and summer are the best time to buy a convertible car. Sun Motors experts have also selected their top 5 used convertibles for sale today, including two-seater and four-seater convertibles and super sporty models. It's top-down and shades on for our round-up of the best used convertible cars in the UK today for you to ponder ahead of the heatwave. Why is spring and summer a good time to buy a used car? March (and spring in general) is the best time to buy a used convertible car. Why? The age-old rules of supply and demand. The market for convertible cars hibernates during the winter, as drivers and dealers forget the sun and focus on surviving wind, rain, ice, and snow. Convertibles are designed for fair weather. By March, we've banished the winter blues, and things are beginning to heat up – including the market for convertibles. As we head into summer, market forces take over. As demand for convertible cars increases (reaching a peak during the summer), dealers can respond by putting up their prices. 2025 is breaking records for car sales, with more buyers, sellers, and motors on the market. That's good because competition encourages sellers to price competitively and provides buyers with the power to bag a bargain. Sellers don't want stock hanging around, and convertibles are harder to sell than a standard saloon, for example, as the market is smaller. Basically, while spring is probably the best time to buy a convertible, competition in the market and the pressure to make a profit mean you'll still be able to strike a good deal on a used convertible in summer. Stuck for cash? Spread the payments for your summer convertible Convertible cars, as you'll see from the list below, aren't exactly cheap, but there is a way you can get your dream car. Sun Motors offers car buyers a straightforward and simple way to finance a new car. The easy-to-use affordability calculator provides a guideline on the amount you can borrow, including interest rates and monthly repayments. That means you can have complete confidence that you can afford a car before falling in love with it. Even better, you don't need to worry about any searches damaging your credit rating. Our finance partner will only do a soft check. It's worth checking even if you've been previously denied credit. We work with a specialist lender who may consider applications from those with a bad credit rating. Give it a try, you've got nothing to lose. What is a convertible car? A convertible car is a car that can be driven without a roof. Most convertibles will have a roof that can be secured in place, converting it back into a car with a roof. (Hence the name.) On the market, you'll find two types of convertibles: soft tops and hard tops. What is the difference between soft-top and hard-top convertibles? Soft tops have a roof (made from canvas, cloth, vinyl, or another material) that can fold up or down. Hard-top convertibles have a solid roof that folds down. 12 Model: Audi TT FIND HERE There are advantages and disadvantages of each. Soft top convertibles can be cheaper to buy and often easier to maintain. On the other hand, soft roofs are more likely to degrade over time, are easier to damage, and won't be as warm as a hard top. Hard tops are more durable, warmer (because of greater insulation), and more secure. However, they can be more expensive to buy, maintain, and fix if they break. Benefits of a convertible car There's really only one reason you'd buy a convertible car, and that's because you want to experience the fun and freedom of driving without a roof. If you haven't tried it before, you should. Convertible cars are often sportier and more stylish than their hard-top cousins. Drive a convertible, and you're making a statement. (Especially if you forget to put the roof up and it rains.) Convertible cars are more expensive, but they can hold their value better, too. Top 5 used convertible cars for sale Here is Sun Motors' choice of the five best used-convertibles for sale in the UK today. Mazda MX-5 12 Affordable, reliable and the world's best-selling roadster. You knew it would be the Mazda MX-5, didn't you? Since its launch in 1989, the MX-5 has become a firm favourite, with the latest model still getting rave reviews. An abundance of MX-5s on the market keeps prices low. Insurance and maintenance costs won't break the bank – especially when compared to some of the other brands on our list (we're looking at you, Mercedes). Check out the WhatCar? guide on potential problems for your Mazda MX-5. (And always check the roof!) Shop around for the best deals, like this low-mileage 2016 SKYACTIV-G Sportmodel at less than £275 per month. Audi TT Convertible 12 FIND HERE Another best-selling classic, the Audi TT convertible, is no longer in production, which makes us sad. It's slightly bigger than the Mazda MX-5 and is highly reliable, says WhatCar?. Common problems include water leaks, faulty roof mechanisms, and issues with the interior trim. Sporty models like S and RS could have been driven hard, and damage to panels, paintwork, and alloys could all be expensive to fix. Find a good Audi TT convertible and you'll get years of stress-free motoring in a modern classic. Check out this almost spotless 10-year-old AUDI TT Coupe 2.0 TDI ultra Sport in impressive (and easy to keep clean) gun metal grey. MINI convertible The MINI convertible is small but strangely spacious, with enough room for four people, says Autoexpress. While you're not going to be running around with a rugby team, the MINI convertible is a practical, fun and attractive car. We like the 2016 model with its bullet-proof, BMW-approved, 3-cylinder 1.5-litre engine. It's fast enough for country lanes and forgiving for stop-start city driving. You'll often pay a premium for the MINI badge, but they retain value well, so buy with confidence. Our choice? The market for MINIs is vibrant, so it's hard to select one, but we like this box-fresh 2025 Mini Cooper S Class. Mercedes SLK The Mercedes SLK is sharper, faster, and more comfortable than many of the other convertibles here. It's a great grand tourer, capable of taking you, a passenger and a few small cases pretty much anywhere you want to go. Pick up an SLK55, and you'll reach 60mph in 4.6 seconds. Ouch. The hardtop roof goes up and down with German precision. Check everything is working, as replacements can be very costly. One thing to mention is that automatics are standard here, while manual cars are rare. Car reviewers seem to favour the SLK 200, which is a great car. Used SLKs are affordable, like this 2016 AMG for a pint under £300 per-month. BMW Z4 12 Model: BMW Z4 The BMW Z4 Roadster features a unique long bonnet design with an awesome BMW grill. Modern models are monsters, but we prefer the older – and more affordable – 2013-2017 Z4s. Why? They look great, perform well, and feature a reliable metal folding roof. Find one with a full-service history, and it's a good buy (especially when you see rising prices for older Z3s.) The BMW Z4 is a classic two-seat, big engine, small boot roadster, and we love it for that. It doesn't take long to find bargain BMWs out there. We like this 2015 M-Sport model. Best 4-seater convertible cars Need to carry you, your partner and the kids? Get a four-door convertible. Here are a couple of our favourites: The Mercedes C Class isn't particularly roomy, but you'll get four in at a push. And they will all want to get into this superbly-specced 2018 Mercedes C220 AMG Line D Auto. Model: Mercedes-Benz C-Class FIND HERE Another shout-out for the Germans, the BMW 4 Series Convertible is our second-favourite four-door convertible. Current models are all well and good, but we love the classic BMW grill on this sub-£10k BMW 4 Series 2.0 420i SE Euro 6. Here are a couple of our favourite all-out sports convertibles: The Porsche Boxster is a fast and cool mid-engine sports car that's incredible to drive. Model: Porsche Boxster Our choice on the market today is this immaculate 2016 Boxster with a high-powered 3.4-litre engine. FIND HERE The Lotus Elise is a small, lightweight, and blisteringly fast British-designed sports car. This canary yellow 2016 Lotus Elise convertible is all kinds of crazy, in a good way. Convertible car buying FAQs Here, we answer some common questions convertible car buyers have. What to look out for when buying a used convertible When buying a used convertible, you'll want to ensure that the roof itself is clean, the mechanism functions correctly (basically, that it goes up and down as it should), and there are no splits, tears, or damage. Ask the seller about the age of the roof (if it's a soft top) and if the roof has been repaired or replaced. If you're considering buying a soft-top convertible, get on a stool, chair, or stepladder and check over the whole roof of the car. Tears and splits can (and sometimes are) covered with tape, which can be impossible to spot unless you get up close. If you're happy that the roof goes up and down as it should and isn't damaged, then you can check all the other essentials, including condition, damage, service history, MOT records, mileage, etc. How to clean a convertible roof If you have a hardtop roof, you can clean it in the same way you would clean the rest of your car. Soft-top convertible roofs should be cleaned using a specialist cleaning product. These will help to remove any first and stains (including corrosive substances like bird poo) but won't dry out the material, which could cause it to become brittle and split or break. Take your time, follow the instructions, and you'll be fine. Always check for water ingress into the car after washing your convertible. Early warning enables immediate action! How to look after a convertible Convertible cars should be serviced and maintained in the same way you would any other car. If your car has a soft roof, you should regularly clean it (see above) and apply a protectant. This guide from detailing experts Autoglym is a good place to start. Over time, the soft top covering can wear out or dry out, leaving it susceptible to rips, tears, and other damage. You can protect it by storing it in a garage or under a cover, especially during the worst of the winter weather. Any soft-top convertible car left exposed to the elements for too long will become damaged. How does pre-approved car finance work? The best thing about Sun Motors' pre-approved car finance is that you can check how much you can borrow before you fall in love with a new convertible car. How? The magic of the Sun Motors system is that it runs a soft credit check. The result is a realistic monthly budget with no impact on your credit score. Armed with this, you can start the fun part: finding a new convertible car. How long does car finance approval take? It's very, very fast. In most cases, you'll get a pre-approval decision within 60 seconds. When you find a car you like, you can go through the final approvals process on the same day. Decision in 60 seconds, finance in a day, and a new dream car on its way. Motor Genius Group Ltd t/a Sun Motors is an Appointed Representative (FRN 960504) of The Compliance Guys Ltd who is authorised and regulated by the FCA (FRN 941360). We are a credit broker not a lender. We work with a select group of lenders and will receive commission. The full details of how the commission arrangements work will be provided before you proceed with any arrangement. Finance subject to status and income. Terms and Conditions apply. The advice we provide is not impartial due to our commercial relationships with lenders. ICO number [ZB640135].
Forbes
14 hours ago
- Business
- Forbes
Today's HELOC & Home Equity Loan Rates: June 27, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home's value and pay that amount back in monthly installments. A home equity line of credit is a variable-rate second mortgage that draws on your home's value as a revolving line of credit. Both options use your property as collateral for your payments, which means your lender can seize your property if you can't repay what you borrow. $100K HELOC Loan Rates Ideal for Medium-Sized Projects A $100K HELOC is suitable for more extensive renovation projects or other significant financial needs. Compare the rates and terms to find the best fit for your situation. $250K HELOC Loan Rates Access More Funds for Major Investments For larger projects or investments, a $250K HELOC provides the necessary funds with various LTV options. Explore these rates to determine the right balance between borrowing capacity and risk. $500K HELOC Loan Rates Maximize Your Borrowing Power If you have substantial equity in your home and need significant financing, a $500K HELOC offers a great deal of borrowing power. Evaluate these options to find the optimal rate and term for your goals. Pros and Cons of a HELOC PROS CONS You can expect an average interest rate that's lower than other loan types You can expect variable interest rates that change over time, which may make it difficult to manage your payments HELOCs let you access your funds as needed compared to a traditional loan that's paid as a lump sum Lenders use your property as collateral, which means you can lose your home if you default on your loan Interest payments may be tax deductible if you meet IRS guidelines and prove that you will use the funds to buy, improve or build a home HELOCs charge several loan fees that usually equal 2% to 6% of your overall loan amount fees HELOCs can be an excellent option to consolidate your other debt payments into one monthly payment and boost your credit score If the property value drops, you can owe more on your HELOC than your home is worth See More See Less 5-Year Home Equity Loan Rates (60 Months) A 5-year term offers a shorter repayment period with typically higher monthly payments. These products are suitable for borrowers looking for a quicker payoff. 10-Year Home Equity Loan Rates (120 Months) With a 10-year term, borrowers can enjoy a balanced monthly payment while still building equity quickly. 10-year home equity loans are ideal for medium-sized projects or financial needs. 15-Year Home Equity Loan Rates (180 Months) A 15-year term provides lower monthly payments compared to shorter terms, offering more affordability while still progressing toward your financial goals. 20-Year Home Equity Loan Rates (240 Months) Offering longer repayment and lower monthly payments, 20-year home equity loans are suitable for larger investments and long-term financial planning. 30-Year Home Equity Loan Rates (360 Months) The 30-year term maximizes affordability with the lowest monthly payments. These options are best for substantial borrowing needs and long-term investments. Pros and Cons of a Home Equity Loan PROS CONS You'll pay a fixed interest rate that remains consistent during your loan term You put your property at risk of foreclosure since your home secures your loan against defaulted payments If you have a big one-off expense or an investment opportunity, home equity loans distribute funds in lump-sum payments, unlike a credit card or a HELOC Home equity loans have strict requirements that can make them difficult to qualify for Home equity loans are unrestricted, meaning you can use them for almost any expense, including home renovations or auto repairs Home equity loan lenders tend to charge expensive fees that include origination fees, appraisal fees and closing costs Interest paid on your home equity loan might be tax-deductible if you itemize your deductions If your home's value decreases over time, you could end up with a loan balance that's higher than your property's value See More See Less What Is Home Equity? Home equity represents how much you own of your home compared to what the bank or mortgage lender owns. If you've paid off your home in full, you have 100% equity. You can utilize your home's equity without paying off your home in full, whether through a home equity loan or a home equity line of credit (HELOC). You can use your home's equity for home improvements, repairs, debt consolidation and educational costs, among other things. Why Is Home Equity Important? Home equity is important because it signifies how much wealth you have based on how much of your home you own. The more equity you have, the more wealth you've accumulated. If you ever need to utilize your home equity, you can tap into it with a home equity loan or home equity line of credit. You might also want to explore a cash-out refinance as an option to use your home's equity. What Is a HELOC? A home equity line of credit, often referred to as a HELOC, lets homeowners convert the equity in a residential property into cash through a revolving line of credit that's secured by your home. When you get a HELOC, you can take the money available in installments as you need it and pay interest only on what you use.
Yahoo
a day ago
- Business
- Yahoo
New study warns that one type of US home foreclosures could surge by staggering 380%: 'Hidden risks'
Weather-related foreclosures across the United States could jump 380% over the next 10 years, reported CBS MoneyWatch. By 2035, weather-driven events could account for up to 30% of all foreclosures, compared with roughly 7% today. The research from First Street, a climate impact analysis firm, shows how rising repair costs and insurance premiums are creating a perfect storm for American homeowners. Weather-driven foreclosures happen when extreme conditions damage homes so badly that owners can't afford the repairs or insurance costs. Unlike traditional foreclosures caused by job loss or financial hardship, these stem directly from floods, hurricanes, wildfires, and other weather disasters. The problem hits families with low and moderate incomes the hardest since most of their wealth is tied up in their homes. When a storm destroys your house and insurance doesn't cover the full cost, foreclosure often becomes the only option. These foreclosures are a concealed financial risk that most lenders don't consider when approving mortgages, per the report. Banks typically look at your income, debt, and credit score but not whether your future home sits in a flood zone or wildfire path. First Street projects lenders will lose $1.2 billion this year alone, with losses climbing to $5.4 billion annually by 2035. For every 1% increase in insurance costs, it estimates foreclosure rates jump by roughly 1% nationwide. "Such losses represent the 'hidden risks' of climate change that lenders often fail to account for in their underwriting practices," CBS MoneyWatch wrote while paraphrasing Jeremy Porter, head of climate implications at First Street. This oversight leaves both homeowners and banks vulnerable when disaster strikes. Florida faces the biggest risk, with eight of the top 10 counties for the highest projected credit losses. Duval County alone could experience $60 million in losses from 900 foreclosures in a severe weather year. Do you think America is in a housing crisis? Definitely Not sure No way Only in some cities Click your choice to see results and speak your mind. However, the impact goes beyond coastal areas. Heavy rainfall and river flooding threaten inland communities too, especially where flood insurance coverage remains spotty. The real problem lies in insurance gaps. The Federal Emergency Management Agency's flood maps cover just under 8 million properties, but First Street estimates nearly 18 million homes face flood risk. That leaves millions of homeowners without proper coverage. "About half the people with significant flood risk aren't mapped into [FEMA's] Special Flood Hazard Area," Porter explained. "So it leads to a state where we have a lot of underinsurance across the country." Properties outside official flood zones saw foreclosure rates 52% higher than those inside protected areas when flooding occurred from 2002 to 2019. "If you don't protect yourselves, then when the event does occur it's completely on you. You end up having to pay out of pocket and you may go into foreclosure," Porter said. When buying a home, ask about flood risk even if you're not in an official flood zone. Consider flood insurance regardless of requirements, and factor potential weather-related costs into your budget. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
a day ago
- Automotive
- Yahoo
Second-chance car loans: What they are and how to get one
A second-chance auto loan is an auto loan that caters to borrowers with subprime or deep subprime credit. Second-chance car loans come with higher interest rates that can inflate the price of a car loan by hundreds of dollars. There are more affordable alternatives to second-chance auto loans, but these loans can put you in a car more quickly if it's essential for you to have a vehicle. A lower credit score can make getting approved for competitive auto loan rates challenging, but you may still be eligible for financing through a second-chance auto loan. Also referred to as subprime auto loans, these cater to borrowers in the subprime and deep subprime categories. The trade-off is higher borrowing costs, which results in a higher monthly payment. If you've exhausted other options, a second-chance auto loan could help you finance a vehicle. Still, it's worth considering the benefits and drawbacks of these loans before you apply to know what you should expect. A second-chance auto loan, or subprime car loan, is a type of bad credit auto loan offered to drivers who may be denied financing for traditional auto loans. In general, FICO scores between 501 and 600 are considered subprime. Anything lower is considered deep subprime. The eligibility guidelines for second-chance auto loans vary greatly among lenders. Most will require a minimum credit score and minimum income. Those without strict requirements will likely still consider your credit score and income, but these lenders may also consider other factors, although with any option, you can expect higher interest rates and less favorable loan terms. You will almost certainly have to pay a higher interest rate on a second-chance auto loan. An excellent credit score nets an average interest rate of 5.18 percent on a new car loan, whereas subprime borrowers face a much higher average interest rate of 13.22 percent, based on data from Experian. This is because lenders consider you a higher risk of default. While not all lenders offer these types of loans, there are a few places where you can find one. Some dealership financing may include a second-chance loan. In general, buy here, pay here (BHPH) lots cater to customers with no credit or low credit scores. Because of potentially high interest rates, they should only be used as a last resort. In addition, some dealerships will place tracking devices or starter interrupters on vehicles to make repossession easier, which can be an invasive drawback for some drivers. It's also worth exploring no-haggle online car dealerships like Carmax and Carvana if you need a second-chance car loan. Good credit isn't required for financing, and these options allow you to shop and finance used cars in one place, which makes them a convenient option if you have limited or no credit history. There are multiple lenders that operate either fully or partially online, like LightStream, which offers unsecured auto loans. You may also want to consider using an online lending marketplace to make finding and comparing these lenders easier. Before filling out a marketplace's form, check if there is a service fee to match you with lenders. If there isn't, you may be able to quickly compare options that fit your credit score and budget. You can also view loan offers that include monthly payments and interest rates without impacting your credit score. While major banks often cater to borrowers with good to excellent credit, there are some local banks and credit unions that are willing to work with borrowers who have poor credit. These can be worth exploring if you already have an account or are willing to open one. In particular, you may be able to get an auto loan with a credit union since these typically have lower rates and may consider your broader financial picture. If you're already a credit union member, make an appointment to speak with a loan officer. You may be eligible for financing based on your existing relationship. Although they are accessible, second-chance car loans are not without flaws. Keep these factors in mind before applying to make an informed decision. Second-chance car loans are riskier for lenders. Consequently, they charge steep interest rates that could make your payments more costly. The average monthly payment for subprime new auto loans is $762, but borrowers with excellent credit scores pay just $727, according to Experian. The steeper monthly payment is likely tied to the higher car loan interest rate that subprime borrowers are offered. The average interest rates for applicants with subprime or deep subprime credit range from 13.22 percent for new vehicles up to 21.58 percent for used vehicles. You should also be on the lookout for fees — like application, origination, prepayment and any monthly account fees — to get an idea of what additional costs you may have to work into your budget. Hold off on signing any paperwork until you read the loan contract and understand all the costs involved. You may also want to use an auto loan calculator to determine exactly how much a loan could cost each month. If you plan to buy a car as a first step to improving your credit, a second-chance auto loan may not be the way to go. Some lenders choose not to report loan activity to the credit bureaus, which means you lose the opportunity to build your credit through on-time payments. Ask the lender if it reports to the credit bureaus. There are many that do, and a positive payment history is critical if you want to get better terms or refinance your auto loan in the future. It's also worth reading the fine print to confirm the exact credit reporting a lender does when you are paying back your loan. Because subprime borrowers have high average interest rates, it is one of the most crucial aspects to consider when comparing second-chance auto loans. Shopping around with multiple lenders and applying for preapproval is essential to finding the best deal. If you can find a rate even a single percentage point lower, you can get a more affordable monthly payment and save on interest. For example, your monthly payment on a $26,000 auto loan with a 60-month term will be drastically different depending on your interest rate. The total amount you pay in interest will also be affected, leading you to spend hundreds — if not thousands — of dollars more over the life of your loan. APR Monthly payment Total interest paid 9% $540 $6,383 14% $605 $10,298 19% $674 $14,467 22% $718 $17,086 Avoid buy-here, pay-here lots that require a starter interrupter or a GPS tracker in order to approve you for financing. These types of devices make it easier for vehicles to be repossessed for non-payment, and they can leave you with little or no time to bring the loan current or work with your lender to make payment arrangements. Be wary of any deals that seem too good to be true when researching subprime lenders. Check customer reviews and thoroughly vet any potential lenders before you apply. Otherwise, you could fall victim to a yo-yo scam or other car-buying scam and lose money, time and the car you're trying to buy. If you've been turned down for a second-chance car loan or can't qualify for a decent rate, consider other options. It may mean waiting a few months — but a good deal is worth the patience. Add a cosigner. The lender may approve your application if you have a cosigner with excellent credit and a stable income — but keep in mind, many lenders only accept joint applications, not cosigners. Improve your credit. If you have time to wait, improving your credit may help you qualify for a loan with more favorable terms. On average, borrowers with near prime credit — FICO scores between 601 and 660 — have interest rates three to five percent lower than those with subprime credit. Buy with cash. It takes time to save enough money to cover the purchase price, vehicle registration and other related costs. Still, you can steer clear of the lender's eligibility guidelines and interest payments that come with auto loan financing. A second-chance car loan could be an option if you can't get approved for financing elsewhere. Still, it may not be a smart financial move. You could be better off waiting to purchase and improving your credit health to qualify for more favorable terms in the future. If you do need to borrow a second-chance auto loan, compare lenders and review available terms before applying to decide if the benefits outweigh the costs. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
How much can I borrow with a personal loan?
If you need to finance an unexpected cost, such as a high medical or auto repair bill, a personal loan is worth considering. These loans offer flexibility, fairly low rates, and a simple application process — plus, lenders often disburse the money within a couple of business days after you're approved. This makes them a useful alternative to credit cards, which often have high rates and stricter approval requirements. While personal loans have several benefits, an important question remains: How much can you borrow with a personal loan? Here's what to know. The amount you can borrow varies based on the lender, your credit profile, and what you will use the money for. It's common to see minimum loan amounts of $1,000 to $5,000 up to a maximum of $50,000 or even $100,000. However, some lenders offer wider ranges. For example, Navy Federal Credit Union offers personal loans ranging from $250 to $150,000 for qualified borrowers. But just because you can qualify for a large loan doesn't mean you should borrow the full amount. Instead, consider the cost you're covering and how much you actually need to take out. This will help you keep your debt manageable, allowing you to set aside extra funds for things like savings, investing, or other beneficial purposes. Several factors influence how much you can borrow with a personal loan, including: Lender: There's no standard minimum or maximum loan amount. Instead, some lenders may let you borrow as little as $1,000 or as much as $50,000 or $100,000. You may need to shop around to find a lender that offers the amount you need. Credit score: You'll generally need a credit score of at least 580 to qualify for a personal loan, but again, requirements vary by lender. The better your credit, the more likely you are to qualify for a low rate and a large loan. Debt-to-income ratio: Lenders also look at your debt-to-income ratio, or DTI, when you apply for a personal loan. This measures your total monthly debt payments compared to your total monthly income, and it helps lenders determine if you can afford to borrow more money. You may be eligible for a larger loan if you have a low DTI. Income: You need a consistent income to qualify for a personal loan, and how much you earn affects how much you can borrow. High income and low debt could increase your likelihood of qualifying for a large loan. Collateral: Most personal loans are unsecured, meaning collateral isn't required to borrow. However, some lenders allow you to secure a personal loan with something valuable, such as a car, bank account, or investment portfolio. You can likely borrow more if you put down collateral, but the lender can seize your pledged asset if you default on the loan. Loan purpose: How you plan to use the personal loan can also affect how much you qualify for. Lenders may lend you more money for a home improvement project or debt consolidation than they might for a vacation or other discretionary spending. Read more: How to get approved for a personal loan If you're concerned you won't qualify for a large enough loan, there are a few things you can do to increase your borrowing power: Improve your credit: One of the best ways to increase your likelihood of a larger loan is to improve your credit. Ensure you make your monthly debt payments on time, pay down your debt as much as possible, keep your old accounts open, and avoid applying for new credit. Increase your income: Increasing your income might also make you eligible for a larger loan. Besides finding a higher-paying job, you can also request a raise or pick up a side gig to supplement your full-time earnings. Consider a co-borrower: Some lenders let you apply for a personal loan with a co-borrower or co-signer. This is a trusted person in your life — and ideally, someone with great credit — who has equal access to the loan funds and shared responsibility for repaying the debt. If your co-borrower is well qualified, you're likely to get better loan terms and lower rates. If personal loans don't seem like the best fit for your situation, there are alternatives. Here are some options. Some credit cards offer a 0% introductory APR for as long as 18 or 21 months, allowing you to borrow money interest-free during this time. These cards are often reserved for people with excellent credit, but if you can qualify for a card like this, it could give you the flexibility to pay off a large balance without incurring interest charges. Just ensure you pay your card off before the intro period ends, or you could end up with hefty interest charges on any remaining balance. Here are some top 0% APR cards to consider: Chase Freedom Unlimited Capital One VentureOne Rewards Credit Card Blue Cash Everyday® from American Express If you need to borrow a large amount of money and have significant equity in your home, a home equity loan or home equity line of credit (HELOC) could be a good choice. With a home equity loan, you borrow a lump-sum amount and use your home equity as collateral. You'll then make monthly payments on your home equity loan until it's repaid. HELOCs are slightly more flexible. Instead of a lump-sum loan, you open a credit line against your home equity. You can then draw down on this credit line for a set period, often five or 10 years. During this time, you can make interest-only payments on your HELOC. After that, you'll enter a repayment period — often 20 years — during which you'll make full principal and interest payments. This article was edited by Alicia Hahn.
