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If you’re finding your student loan debt difficult to manage, one option for tackling it is to leverage your home equity. It’s possible to do this through the student loan cash-out refinance program offered by Fannie Mae or through a general cash-out refinance.

Either option would allow you to use the excess value of your home to pay off student loan debt directly. Plus, because you would be consolidating your student loan debt into your mortgage, you’d have to make just one payment each month. You might also secure a lower interest rate than you had on your student loans.

Still, there are major downsides to consider before paying off student loans with home equity. For one, the student loan debt won’t actually go away — you’ll still owe that money. Additionally, you could lose access to student loan benefits and protections. And, if you aren’t able to stay on top of monthly payments, your home is on the line.

Using a Student Loan Cash-Out Refinance to Pay Off Student Loans

With a cash-out refinance, you take out a new mortgage for an amount that exceeds what you currently owe. You then get the difference in cash, which you could then use to pay off your student loan debt.

One option for doing this is through Fannie Mae’s Student Loan Cash-out Refinance program, which is specifically designed to allow homeowners to use their home equity to pay off student loans. To qualify, borrowers must use the funds from the cash-out refinance to fully pay off at least one of their student loans. Additionally, it’s stipulated that this loan must belong to the individual who applied for the refinance.

For borrowers who don’t qualify for the Fannie Mae program, or who want to use their cash for costs other than student loan repayment, it’s also possible to get a general cash-out refinance through another lender.

Whether you go with Fannie Mae or another lender, there are typically certain requirements that a borrower must meet to qualify for a cash-out refinance. Generally, there are stipulations for credit score, debt-to-income ratio, and the amount of equity in the home after closing. As such, it’s helpful to determine before applying how much equity you have in your home.

Recommended: First-Time Homebuyer Guide

Should I Tap Into My Home Equity to Pay Off Student Loans?

Using the equity you’ve earned in your home to pay off your student loans may sound like an easy fix. But before you commit to refinancing, you’ll want to weigh the decision carefully. While it may make sense for some, a student loan cash-out refinance won’t work for everyone. Here are a few pros and cons to consider as you make your decision.

Benefits of Paying Off Student Loans with Home Equity

Like most financial decisions, paying off your student loans with the equity you’ve earned on your home is a multifaceted decision. Here are some of the ways you could find it beneficial:

•   You may be able to get a better rate. Securing a lower interest rate is potentially the most appealing reason to use the equity in your home to pay off student loans. As part of your decision-making process, consider reviewing mortgage options at a few different lenders. While reviewing rate quotes from each lender, do the math to determine if paying off student loans with home equity will truly reduce the amount of money you spend in interest. If there are any fees or prepayment penalties, make sure to factor those in. Keep in mind this isn’t the only way to get a better rate either — another option to explore is student loan refinancing.

•   You may get more time to pay off your loan. When making your decision, also take into account the length of the mortgage term. The standard repayment plan for student loans is a 10-year term, unless you have already consolidated them, in which case you could have a term of up to 25 years. With a mortgage, term lengths can be as long as 30 years. Just keep in mind that while repaying your debt over a longer time period could lower monthly payments, it may also mean you pay more in interest over the life of the loan.

•   You can streamline your payments. Another benefit is reducing the number of monthly payments you need to keep track of. Instead of paying your mortgage and each of your student loans, those bills will get consolidated into a single payment. Streamlining your payments could help you stay on top of your payments and make your finances a little bit easier to manage.

Recommended: Home Affordability Calculator

Downsides of Paying Off Student Loans with Home Equity

There are a few potential negatives that could impact your decision to pay off student loans with your home equity:

•   You risk foreclosure. Using your home equity to pay off your student loans could potentially put your home at risk. That’s because you’re combining your student loans and mortgage into one debt, now all tied to your home. That means if you run into any financial issues in the future and are unable to make payments, in severe cases, such as loan default, your home could be foreclosed on.

•   Your student debt won’t really disappear. When you use your home equity to pay off your student loans, you’ll still owe that debt. Only now, it’s part of your mortgage.

•   You’ll lose access to student loan benefits and protections. When you do a student loan cash-out refinance, you’ll no longer be eligible for borrower protections that are afforded to borrowers who have federal loans. These benefits include deferment or forbearance, as well as income-driven repayment plans. If you’re pursuing student loan forgiveness through one of the programs available to federal borrowers, such as Public Service Loan Forgiveness, consolidating your student loan debt with your mortgage would eliminate you from the program. As such, it may not make sense to use the equity in your home to pay off your student loans if you’re currently taking advantage of any of these options.

•   You could owe more than your home is worth. As you weigh your options, consider comparing the available equity in your home to the amount you owe in student loans. In some cases, you may owe more in student loan debt than you have available to use in home equity under the various loan guidelines. If you end up owing more than what your home is worth, that could make it tough to sell your home, as you’d need to add your own funds to repay your loan balance.

When It’s Time to Leverage Your Home Equity

Cashing in on your home equity isn’t as easy as withdrawing money from your checking account, but it’s also not as difficult as you might think. A good first step is to contact a mortgage lender, who will order an appraisal of your home and help you to get started on the paperwork.

This is also a good time to explore another way to leverage home equity to pay bills: a home equity line of credit (HELOC). When you take out a HELOC, you can borrow (and pay interest on) only as much as you need at a given time, up to a preapproved credit limit. A HELOC monthly payment calculator can be a useful tool as it will help you understand what monthly payments might look like if you follow this path. If you have a great rate on your existing mortgage and don’t want to refinance into a higher rate, a HELOC might be a good alternative.

It could also be a good idea to check your credit score. To secure a cash-out refinance, many lenders will likely require a credit score of 620 or higher. That being said, the minimum score required depends on many factors, such as credit, income, equity, and more. If you don’t meet the minimum FICO score requirement for your chosen program, you might want to try to improve your credit score before applying.

At the very least, you’ll likely need to gather necessary documents so you have them handy. Get together your latest tax filings, pay stubs, and bank statements. Lenders use those documents to evaluate whether you have the savings and cash flow to pay back a fatter mortgage, and they may ask for when you apply to refinance.

The Takeaway

When used responsibly, home equity can be a useful tool in helping to improve your overall financial situation — including using home equity to pay off student loans. While there could be upsides, such as streamlining payments and securing a better rate, it’s important to also weigh the drawbacks, like losing access to student loan protections and putting your home on the line. Depending on how much you owe on your student loans, a cash-out refi or a home equity line of credit (HELOC) might be a good way to settle some or all of your student loan debt and even consolidate multiple loans into one payment.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

FAQ

Is it smart to use home equity to consolidate debt?

It can be. If you can obtain a lower interest rate on a home equity loan, home equity line of credit (HELOC), or even a cash-out refinance, it could make sense to consolidate debt this way. And if you have multiple types of debt (student loan debt, credit card debt, for example), it might simplify things to have one monthly payment. But it does mean you would lose access to student loan forgiveness and forbearance benefits, and securing debt with your home does involve risk.

Is it a good idea to take out a home equity loan to pay for college?

While you can pay for college with a home equity loan, it might be better to find a student loan for that expense because if you are unable to make payments on your home equity loan, your property could be at risk.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOHL-Q424-143

If you are wondering if you made enough money to file taxes this year, the answer will depend on more than just your income. There are other qualifying factors, such as age and marital status. What’s more, even if you are not required to file taxes, it’s often a wise move to do so anyway.

Here, you’ll learn what you need to know about tax-filing requirements based on your income and other aspects of your filing status. In addition, you’ll find some smart tips for filing your tax return this season.

What Factors Determine If You Have to File Taxes

How much do you have to make to file taxes? The answer is, it depends. While income is important, it’s not the only factor to consider. Determining whether you need to file taxes depends on your:

•   Gross income (earned and unearned)

•   Filing status

•   Age

•   Dependent status

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How Much Do You Need to Make to File Taxes?

You’ll likely have to file taxes in 2026 if you’re a single filer and your gross income in 2025 was at least $15,750, or you’re married filing jointly and your gross income was at least $31,500. If you were 65 or older at the end of 2025, those minimum income limits are higher.

Here’s a more detailed look at the filing guidelines for 2025 taxes (filed in 2026).

Single

Filing requirements for single taxpayers vary based on age:

•   Single filers under 65 must file a return if their gross income was $15,750, or more.

•   Single filers 65 or older must file a return if their gross income was $17,750 or more.

Head of Household

Similarly, those with a head of household filing status have varying thresholds based on age:

•   $23,625 for heads of household under 65.

•   $25,625 for heads of household 65 or older.

Married Filing Jointly

Married couples who file a joint return have slightly more complicated requirements since the two spouses could be in different age categories:

•   If both spouses are under 65, they must file if their gross income is $31,500 or more.

•   If one spouse is under 65 and the other is 65 or older, they must file if their gross income is $33,100 or more.

•   If both spouses are 65 or older, they must file if their gross income is $34,700 or more.

Married Filing Separately

Regardless of the age of either spouse, taxpayers who are married but filing separately must file if their gross income is just $5 or more, according to IRS guidelines.

Qualifying Surviving Spouse

If you’re a qualifying surviving spouse, the minimum gross income requirements for filing depend on your age:

•   $31,500 for filers under 65

•   $33,100 for filers 65 or older

If you earn that amount or more, you need to get your tax return in on time. (Remember, if you miss the tax-filing deadline, you may incur penalties.)

Dependent Filers

If you are a dependent claimed on someone else’s taxes, you may still have to file your own return. Minors who earned more than $15,750 from working in 2025 have to file taxes in 2026. If you had unearned income (like interest from a savings account), the filing threshold for 2025 is $1,350.

The following chart summarizes answers to “Do I have to file taxes?” in visual form. It breaks down minimum gross income amounts based on age and filing status for most taxpayers. Dependents are a notable exception. Read on for an overview of income thresholds for tax filing.

If you’re still not sure if you should file, you can use the IRS’s free online tool for determining filing requirements. You’ll need some basic info to accurately complete the assessment, but this tool can come in handy.

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Should I File Taxes Even If I Don’t Have to?

Above is an outline of when you’re legally required to file taxes. But just because you don’t have to file doesn’t mean you can’t or shouldn’t.

Even if you know how much you need to make to file taxes and are below that number, the IRS encourages everyone to file if they can get money back. This may apply if:

•  You had taxes withheld from a paycheck but didn’t make enough money to owe the full amount withheld.

•  You made estimated quarterly payments but didn’t make enough money to owe the amount you paid.

•  You qualify for refundable tax credits that could result in your receiving funds back from the government, like the Earned Income Tax Credit.

Recommended: What Tax Bracket Am I In?

Tax-Filing Tips to Help You This Season

Filing your taxes for the first time or just in need of a refresher? Here are a few tax tips to help you file correctly this season:

•  Be prepared: Preparing for tax season before it’s time to file can make the process much easier. It may be helpful to make a list of all the forms you’re expecting, like W-2 forms and 1099 forms, and keep them located in a safe place until it’s time to file.

•  Check out IRS Free File: No need to pay for professional tax software or an accountant if you qualify for guided tax preparation through the IRS and its partners. As long as your adjusted gross income is $84,000 or less, you’ll qualify.

•  Don’t forget about state and local taxes: We often think of the IRS and our federal tax returns, but depending on where you live, you may also need to pay state and local taxes.

•  File early if possible — and use direct deposit: Generally, the sooner you file, the sooner you’ll get your tax refund (if applicable). If you file electronically and choose direct deposit, the IRS says you can typically expect your refund within three weeks.

•  Understanding extensions: Sometimes, life happens, and it’s just about impossible to meet a deadline. If that’s your situation, you can file for a tax extension and have an extra six months to file your return. Just note that any taxes you owe are still due on Tax Day; it’s only the return itself that can be sent in later.

•  Don’t be afraid to ask for help: Taxes can be overwhelming. While it may not be ideal to pay for an accountant, it could mean earning a larger refund if this tax professional can identify additional tax deductions and credits for which you qualify.

Recommended: How to Make a Budget in 5 Steps

The Takeaway

Tax time can be confusing. It’s not just a matter of knowing how to file but also if you need to file at all. Depending on your income and other factors, you may not be legally required to file your taxes come April. Even if you don’t meet minimum income requirements for filing, however, it might be a good idea to file anyway if you think you may be owed money from previous withholdings or through a refundable tax credit.

And if you do get a juicy refund? Consider depositing it into a high-yield bank account where it can grow.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What happens if I don’t file my taxes?

If you don’t file your taxes but were legally required to, the IRS can charge you a Failure to File Penalty, assessed at 5% of your unpaid tax liability every month that the liability goes unpaid (up to 25%).

If you were owed a refund, you won’t be charged a penalty — but you could miss out on that money owed to you. (You have three years to file to get the refund you’re owed.)

The IRS can take additional steps if you fail to file, including criminal prosecution.

Do I have to file taxes on gifts?

As the recipient of a gift, you generally don’t have to worry about paying taxes on the gift. Instead, the person who gave you the gift would pay the taxes. However, gift-givers don’t have to report gifts to the IRS unless the amount exceeds $19,000 in 2025 and 2026.

Can I file taxes even if I am under the necessary income?

Yes, you can still file taxes if you’re under the necessary income. In fact, the IRS encourages many people to file even if they don’t have to because they might still be eligible for money from the government, perhaps via refundable tax credits.

Photo credit: iStock/Fortgens Photography

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Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

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SOBNK-Q425-051

When you take out a mortgage, you can deduct the amount of money you pay on mortgage interest from your taxable income. But is home equity line of credit (HELOC) interest tax deductible, too? Put simply, it depends on when you took out the HELOC and how much mortgage debt you have.

Here’s what you need to know about HELOC tax deductions, including the requirements and limitations on HELOC tax-deductible expenses, plus how to calculate your deduction.

What Is a HELOC?

Whether to cover renovation costs or consolidate debt, homeowners can borrow against the value of their home to secure the necessary funding. There are two main types of home equity loans: a conventional home equity loan and a home equity line of credit, also known as a HELOC. A HELOC functions as a revolving line of credit that uses home equity — the home’s value minus the amount you still owe on the primary mortgage — as collateral.

How much you can borrow typically ranges from 75% to 90% of your home equity. Generally, lenders require a minimum of 15% to 20% equity in your home to be eligible for a HELOC.

When comparing a HELOC vs a home equity loan, a key difference is that a HELOC allows you to draw funds as you need them, up to a maximum limit, over a draw period (often 10 years). By contrast, home equity loans disburse funds all at once.

With HELOC loans, you pay interest only on the amount you withdraw. Once the draw period ends, any remaining borrowed funds and interest are repaid over a repayment period, which can vary but typically spans 10 years.

Dive deeper: What Is a Home Equity Line of Credit?

How Does a HELOC Affect Your Taxes?

The interest paid on a HELOC could qualify as a tax deduction to lower your taxable income. If you own a home and are planning to claim a HELOC tax deduction, there are some requirements and limitations to keep in mind.

Requirements for the HELOC Interest Tax Deduction

To answer “is interest on a HELOC tax deductible,” it’s essential to check that you meet certain requirements set by the Internal Revenue Service (IRS).

Since the Tax Cuts and Jobs Act of 2017, there are stricter requirements for how funds are spent to be eligible for a HELOC tax deduction. Specifically, funds from a HELOC must be used to buy, build, or improve a qualifying home — either a primary or second home. Eligible expenses can range from rewiring a house to replacing a roof or remodeling a kitchen. Note that funds must be spent on the same property used to secure the HELOC.

It’s also required that you have positive equity in the home used to secure the HELOC. If you have an underwater mortgage, meaning you owe more on the home than its value, you are not eligible for a HELOC tax deduction.

These requirements are in place for tax years 2018 through 2025. Prior to the rule change, a HELOC tax deduction could be made for interest paid on debt used for any type of personal expenses, not just home improvements.

Recommended: Cash Refinance vs. Home Equity

HELOC Tax Deduction Purchase Limits

HELOC tax deductions are not unlimited. So, up to what amount are HELOC loans tax deductible?

The IRS allows you to deduct interest on a maximum of $750,000 in residential loan debt (or $375,000 if married filing separately), including the primary mortgage and a HELOC. For instance, if you had $700,000 left on a home mortgage loan and $150,000 in HELOC debt, you could only deduct interest on the first $750,000 of debt.

If your primary mortgage or HELOC was approved before the 2018 tax year, you may be eligible to claim interest up to the previous limit of $1 million (or $500,000 if married filing separately). Borrowers who took out a HELOC in 2017 or earlier should note that the rule change did away with the $100,000 limit (or $50,000 if married filing separately) on home equity debt for tax deductions.

Tax Deduction Limits on Primary Mortgages

The tax deduction limits on primary mortgages are based on when the mortgage loan was taken out.
If you took out a mortgage before October 13th, 1987, there is no cap on mortgage interest tax deductions. Homebuyers who got a mortgage between October 13, 1987 and December 16, 2017, can deduct interest on up to $1 million in total mortgage debt for married couples filing jointly and single filers. The limit is $500,000 for married couples filing separately.

If you took your mortgage out after December 16, 2017, you can deduct up to $750,000 (or $375,000 if married filing separately).

These limits applied to all combined mortgage debt, including first homes, second homes, and HELOC loans.

Is Home Equity Loan Interest Tax Deductible?

The tax deduction rules for home equity loan interest is the same as a home equity line of credit. As long as you’re using funds to buy, build, or improve a home, you can claim a tax deduction on mortgage debt up to $750,000.

Recommended: What Is a Home Equity Loan?

How to Calculate a HELOC Interest Tax Deduction

Prior to filing taxes, you should receive IRS Form 1098 from your HELOC and mortgage lenders. This form indicates the interest you paid on your HELOC, primary mortgage, or home equity loan in the previous year.

If you used any HELOC funding for ineligible uses, such as personal expenses or debt consolidation, you’ll need to subtract that portion to get the deductible interest.

Besides the interest you paid on your primary mortgage and HELOC loan, total up other deductions like property taxes, mortgage points, and student loan interest. Since you can only deduct mortgage and HELOC interest payments with an itemized deduction, it’s important to check that the total of your deductions exceeds the standard deduction amount.

Here are the standard deduction amounts for tax year 2024:

•   Single or Married Filing Separately: $14,600.

•   Married Filing Jointly or Qualifying Surviving Spouse: $29,200.

•   Head of Household: $21,900.

If the mortgage and HELOC interest, plus other tax deductions you’re eligible for, exceed the above amounts, then it’s worth considering itemizing.

Recommended: Personal Line of Credit vs. HELOC

How to Deduct Home Equity Loan Interest

To deduct home equity loan interest, you’ll need to gather any receipts or invoices documenting how the money was spent. Be sure to keep records of transactions for eligible home renovations and improvements to verify your deductions in case you are audited by the IRS.

Once you’ve compiled all the necessary documentation, you’ll itemize your deductions using Schedule A of IRS Form 1040.

Does a HELOC Affect Property Taxes?

While the amount you take out through a HELOC won’t affect your property taxes, the improvements you make to your home could potentially increase the value of your home. If your renovation is substantial and involves a permit, it could be more likely to change the appraised value and potentially increase your property taxes.

The Takeaway

You can deduct the interest paid on your HELOC if the funds are used to buy, build, or improve your home. HELOC tax deductions must be itemized, and they are only allowable for the first $750,000 in mortgage debt on qualifying primary and secondary residences.

SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.

FAQ

Do you report a HELOC on your taxes?

You report your HELOC interest on your taxes if you’re claiming an itemized deduction and you used your HELOC to build or improve your home.

Will a HELOC appraisal raise my taxes?

No, a HELOC appraisal will not raise your taxes. Property taxes are based on the appraised value of your home by your local government.

Does HELOC affect capital gains tax?

No, a HELOC does not affect capital gains tax on a home sale.

Photo credit: iStock/damircudic

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q224-1861934-V1

Personal loans can be an appealing way to access cash partly due to their flexibility. They can be used for almost any purpose, whether to fix up a home or consolidate credit card debt. Borrowers can receive anywhere from $1,000 to $100,000, choose a fixed or variable interest rate, and even select the length of the loan.

Read on to find out more about how personal loans work, how to qualify, their advantages and disadvantages, and whether a $15,000 personal loan is right for you.

Understanding $15,000 Personal Loans

A $15,000 personal loan is a sizable amount that can serve many purposes. Common personal loan uses include making large purchases (including travel financing), covering living expenses for a defined period, consolidating debt, and making home improvements.

Here are some factors to consider before applying for a $15,000 loan:

•   Interest rate. Interest rates can be fixed or variable. The interest rate that a lender charges will depend on your credit rating and the length of the loan among other factors, but rates can be lower than, say, credit cards. Generally, the better your credit score, the lower your interest rates will be.

•   Repayment term. This is how long you have to pay off a loan for $15,000. You may pay less in interest over the life of the loan if you choose a loan with a shorter repayment term.

•   Monthly payments. Most personal loans have fixed monthly payments based on the amount borrowed, the interest rate, and the term. This makes budgeting easier because the borrower knows how much they must pay each month.

•   Fees. Charges vary by lender but may include late penalties, an origination fee, returned check fee, and prepayment penalties if you pay off your loan early.

•   Collateral. Personal loans are typically unsecured, which means no collateral is required. If you don’t qualify only for an unsecured loan, you may select a loan cosigner with a stronger credit rating to help you get approved.

Recommended: Guarantor vs Cosigner

Pros and Cons of Taking Out a $15,000 Loan

Here are some upsides and downsides of a $15K personal loan to consider. In terms of positives:

•   Access to a lump sum of cash that can be used for almost any legal purpose, though typically not for business expenses or tuition

•   Potentially lower interest rates than credit cards

•   Quick application, approval, and funding processes

•   Timely payments can help build credit scores

•   Usually fixed-rate for predictable payments

•   Typically no collateral required

Next, consider the downsides, which include:

•   Locks you into a lump sum disbursement, which can be less flexible than a line of credit

•   May have higher interest rates than secured funding options, such as home equity loans and lines of credit (HELOCs)

•   Additional fees can be assessed, such as origination fees and prepayment penalties

•   Can negatively impact your credit profile, from the initial hard credit inquiry when you apply and increasing your debt-to-income ratio to triggering damage if you make a payment late or miss it altogether

•   Could open the door to a debt spiral if the loan is used for debt consolidation and you keep making purchases you can’t really afford

•   Overall costs can be high, even if not as costly as, say, using your credit card

Here is the same information in chart form:

Qualification Requirements for a $15,000 Personal Loan

In terms of requirements for a personal loan of this size, consider these points.

Income and Employment Verification

When deciding whether to approve your loan application and, if so, what interest rate and terms to offer, lenders usually want to see that you are employed and have sufficient income to repay the loan. You may be asked to show proof of income and employment, often with pay stubs, W2s and/or a signed letter from your employer. Self-employed? You could be required to share copies of your latest tax returns or bank deposit information.

Debt-to-Income Ratio Guidelines

Another important personal loan qualification is debt-to-income ratio (DTI), which compares your gross monthly income to the monthly payments you make on your debts. In general, the lower your DTI, the more desirable you are as a borrower for a lender. A good rule of thumb is to maintain a DTI ratio of 36% or less.

In addition, you will likely need a credit score at least in the good range for a $15,000 personal loan at a favorable rate. However, many lenders don’t state a minimum required credit score because they will vary the terms for each borrower depending on their credit history.

Exploring Lenders for $15,000 Personal Loans

Online lenders, traditional banks, credit unions, and peer-to-peer lending platforms may all provide $15,000 personal loans.

Online Lenders vs Traditional Banks

Some online lenders prequalify borrowers so they can see the terms, and many will deposit funds into a bank account within one to two days.

Traditional banks may offer better terms to their members because there is a pre-existing relationship. But they may also want to meet with a borrower in person to negotiate the loan.

Loan amounts can range from $1,000 up to $100,000. The average personal loan interest rate is 12.25% as of October 2025. However, the rate you receive will depend in part on your credit score, loan amount, and length of the loan.

Credit Unions and Peer-to-Peer Platforms

Other options for loans include credit unions. You typically need to meet eligibility criteria to belong to a credit union, which could depend upon where you live, your career, or other criteria. Credit unions are often known for having affordable rates, so they may be worth investigating.

Peer-to-peer platforms bypass traditional lenders and provide loans from an individual or company that invests in your loan. It’s important to understand the loan terms and fees with this and other options.

A personal loan calculator can help you determine borrowing costs. In the example below, notice how different loan terms and interest rates impact the total cost of a $15,000 loan.

Tips for a Successful $15,000 Personal Loan Application

The steps to getting approved for a personal loan are typically the same regardless of the lender. The first step, before you even apply, is to review your credit history. You can pull a credit report for free from each of the three major credit bureaus — Equifax®, Experian®, and TransUnion® — from the website AnnualCreditReport.com. Then you can file a dispute online to have any inaccuracies removed. This can boost your credit rating and ensure you get the best terms from a lender.

Here are the basic application steps you’ll need to be prepared for:

1. Check Your Eligibility

Shop around for the best loan terms and find out if you qualify. Check both online lenders and traditional lenders, paying special attention to origination fees and prepayment penalties.

2. Get Prequalified

Getting prequalified will show you what terms the lender is offering based on your credit history. Fill out the online form, including how much you want to borrow and your desired payoff time frame.

Lenders will pull your credit report to prequalify you, which may ding your credit score. Focus on lenders who will perform a “soft inquiry” for prequalification, which will not affect your credit rating.

Recommended: What’s the Difference Between a Hard and Soft Credit Check?

3. Check the Terms

Once you are prequalified, review the preapproval letter and check the loan amount. Check whether it is an unsecured or secured loan, the annual percentage rate (APR), and whether the interest rate is fixed or variable. Pay attention to the monthly payment and the payback term. Also look for fees, penalties, and other potential charges.

4. Apply for the Loan

Gather the documents that you will need to apply for the loan. Borrowers typically need to upload a pay stub, mortgage or rent agreement, debt documentation, proof of identity, and their social security number.

Managing and Repaying Your $15,000 Personal Loan

It’s understandable if your focus is mostly on how to get approved for a personal loan. But just as important is figuring out how you’ll pay it back.

Setting Up Automatic Payments

It can be hard to juggle multiple payments such as a personal loan, home mortgage, and credit cards. Even a single monthly payment can be challenging to manage if you’ve got a busy life. That’s why it’s wise to set up automatic payments for your personal loan. That way, you don’t need to worry about paying a bill late or missing a payment for a cycle.

Your lender likely offers tools to automate the process, which can simplify your life.

Avoiding Late Fees and Penalties

If you choose not to automate payments, you may want to set up recurring reminders in your mobile device’s calendar to keep you on track. There is often a grace period of 10 to 15 after the due date in which you can pay the loan, but after that, either a flat fee or percentage of the monthly payment (say, 3% to 5%) is typically assessed. If you don’t pay the lender at all for 90 to 180 days, you risk having your loan put into collection, which can severely damage your credit and lead to legal action.

By the way, it’s not only late payments that can trigger fees. Paying off a loan early can lead to prepayment penalties. That’s because the lender is losing out on future interest payments and wants to be compensated. Check the fine print before agreeing to a personal loan so you fully understand if this is a condition of your loan offer.

Building Your Credit Score for Future Loan Opportunities

One effective way to position yourself for better loan rates and terms is to work on building your credit score. As mentioned, lenders usually prefer to see a credit score at least in the good range (670-739) to qualify for a $10,000 or $15,000 personal loan, though credit requirements vary.

If your credit isn’t where you want it to be, there are several ways to build (or rebuild) it. Here are some steps you can take:

•   Pay your bills on time, every time. Lenders like to see a history of on-time payments, plus it can positively impact your credit profile.

•   Pay down debts. Besides showing lenders that you can manage your credit responsibly, paying off debts can lower your credit utilization ratio, which contributes 30% of your FICO® Score. Aim for a ratio of 30% or under.

•   Don’t close older accounts. Doing so can bring down the length of your credit history, which makes up 15% of your credit score.

•   Diversify your credit mix. Having a mix of credit products can positively impact your credit (credit mix accounts for 10% of your score). Examples run the gamut from credit cards to personal loans to student loan refinancing.

Recommended: Personal Loan Alteratives

The Takeaway

Personal loan interest rates are determined by a borrower’s credit rating and financial history, among other factors. Typically, the higher the credit rating, the lower the interest rate. For consumers with good credit, a $15,000 personal loan can be a more affordable form of debt than credit cards. For consumers with bad credit, the higher interest rate may make a $15,000 personal loan less attractive.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

What credit score is needed for a personal loan for $15,000?

A credit score in the good, very good, or exceptional range is typically required for a $15,000 personal loan. Some lenders that cater to people with poor credit will charge higher interest rates and fees to cover their elevated risk.

How long can I get a $15,000 personal loan for?

Personal loans typically have terms between two and seven years. The shorter the repayment period, the less interest you will pay over the life of the loan. That said, your monthly payments will likely be higher.

What would payments be on a $15,000 personal loan?

The monthly payments on a $15,000 loan depend on the interest rate and repayment terms. For a 5-year loan at 12.00% interest, you’ll pay about $334 a month. If you know how much you want to borrow, over what period, and at what interest rate, an online loan calculator can tell you what your payments will be.

Can I get a $15,000 personal loan with bad credit?

If you have bad credit, you may indeed find a lender who will give you a $15K personal loan. However, it is likely that the interest rate and fees will be considerably higher than what is offered to those with higher credit scores, and the terms may be less favorable as well.

Is it better to get a personal loan from a bank or online lender?

When looking for a personal loan, it’s not a matter of a bank or online lender being the better choice. Rather, it’s which one suits your needs and financial profile best. If, for example, you already have a relationship with a bank, you may find benefits to keeping your business there. Some online lenders, however, may offer more options for those with fair or poor credit.

Photo credit: iStock/fizkes

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