How to Get a Personal Loan in 6 Steps
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How to Apply for a Personal loan in just 6 steps
The process of getting a personal loan starts by assessing your credit, applying for pre-qualification and looking at loan alternatives.
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Updated on January 18, 2023
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Steps Display More
Steps
Finding a personal loan doesn’t have to be complicated. Finding out where to begin and what you’ll need for the application process and how to evaluate deals can help you decide on the .
Here are six steps to assist you in the process of locating and obtaining the personal loan.
1. Verify your credit score
First check your credit score to determine your financial situation. A credit score that is high can allow you the chance to get personal loan and an interest rate that is lower.
Credit scores generally fall into these categories.
A score of 720 or higher is considered excellent credit.
690-719: Credit score of good.
630-689: Fair or average credit.
300-629: Credit problems.
Are you seeing a score that isn’t as favorable? Make any corrections that are on your report that could affect your score. You can ask for a contest missed payments that were incorrectly reported or other inaccuracies it may contain.
Make timely payments to your debts like credit cards and loan payments, and also keep your credit utilization (the amount of credit you use relative to your credit limits) at a minimum as these are the biggest factors that impact your score.
>What’s your credit score?
2. Calculate your loan payments
Then, you should determine the amount of cash you’ll require from Then, determine the amount you’ll need from a loan. You’ll need to make sure that the amount you choose to borrow is inclusive of any fees that the lender might charge. , which range between 1% and 10 percent of the loan is usually subtracted from the loan funds.
Reviewing the loan size and your credit rating can give you an idea of the monthly and annual payment you may receive for a personal loan.
The loan term also plays into how much a loan costs. A longer loan time frame means smaller monthly payments, but you’ll end up paying more interest.
Utilize the calculator to view the estimated amount of payments based on your credit score, loan amount and loan term. The most effective personal loans come with monthly payments that are within your budget.
From top to bottom
3. Get pre-qualified for a loan
Pre-qualifying for a personal loan provides you with a glimpse of what you might receive from lenders. Many online lenders and some banks perform a during pre-qualification process that won’t impact your score on credit.
When applying for a loan, you are required to generally provide details about yourself, like your name, birth date as well as your income and loan reason.
The process of prequalifying multiple lenders lets you evaluate estimated rates and payments.
Check if you are pre-qualified for a personal loan and not impact the credit rating.
Answer a few simple questions to get personalized rates from our lending partners.
Goal of loan Choose your option Consolidation of Debt Medical Home Improvement Consolidation of Credit Cards Auto Motorcycle Major Purchase Start a Business Education IRS Tax Other Debt
The loan amount
Credit score Choose your choice Good Good Fair Poor
Status of employment Select your choice Full-time Part time Self-employed Unemployed Military Retired Other
Check if you are pre-qualified
To strengthen your application think about a co-signed application or . Adding someone with prime credit or an asset as collateral may help you qualify or receive a lower interest cost. Note that both options have consequences for the co-applicant or collateral if you fail to pay back.
>> MORE:
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4. Shop around and compare lenders.
You can find personal loans through banks, online lenders, as well as credit unions. It’s recommended to shop around and look at loan amounts, monthly payments and interest rates of various lenders.
You can pre-qualify for a loan for loans, apply and get funds online. Lenders like , and offer rapid financing and loans to those with credit scores that span the board.
like , and offer unsecured personal loans like, and current customers can get flexible loan terms and rate discounts. If you’ve got good to excellent credit, check your current bank for special offers.
might offer lower rates and flexible terms, particularly to bad-credit borrowers. You also have the best chance to get a loan for loans of $2,500 or less. You must be a member of the credit union in order to apply for an loan and be ready for the application process, which could lead to you to see your score dip.
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5.0 NerdWallet’s ratings are compiled by our editorial team. The scoring formula takes into account aspects we consider to be beneficial to consumers, including the impact on credit score, fees and rates, customer experience and responsible lending practices.
5.0 NerdWallet’s ratings are compiled by our editorial team. The scoring formula is based on the factors we believe to be a good choice for consumers, such as impact on credit score, fees and rates, customer experience and ethical lending practices.
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Happy Money
4.5 NerdWallet’s ratings were determined by our editorial staff. The scoring formula takes into account the factors we believe to be beneficial to the consumer, such as impact on credit score, fees and rates, customer experience and ethical lending practices.
4.5 NerdWallet’s ratings were determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be friendly to consumers, such as the impact on credit score, rates and fees as well as the customer’s experience and responsible lending practices.
APR 7.99-29.99%
Amount of loan: $5,000 – $40,000
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PenFed Credit Union
5.0 NerdWallet’s rating is determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to the consumer, such as impact on credit score, rates and fees customers’ experience, and ethical lending practices.
5.0 NerdWallet’s ratings are compiled by our editorial team. The scoring formula takes into account aspects we consider to be consumer-friendly, including impact to credit score, rates and fees, customer service and responsible lending practices.
APR 7.74-17.99%
Amount of loan $600-$50,000
on PenFed Credit Union
On Upgrading
Upgrade
5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula is based on factors we consider to be a good choice for consumers, such as impact to credit score, fees and rates, customer experience and responsible lending practices.
5.0 NerdWallet’s ratings are compiled by our editorial team. The scoring algorithm takes into consideration the factors we believe to be beneficial to consumers, including the impact on credit score, rates and fees, the customer experience and ethical lending practices.
APR 8.49-35.97%
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On Upgrading
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4.5 NerdWallet’s ratings are compiled by our editorial team. The scoring formula considers aspects we consider to be consumer-friendly, including impact to credit score, rates and fees, customer experience and responsible lending practices.
4.5 NerdWallet’s ratings are determined by our editorial team. The scoring algorithm takes into consideration aspects we consider to be a good choice for consumers, such as the impact on credit score rate and fees, customer experience and ethical lending practices.
APR 6.5-35.99 percent
Loan amount $1,000 – $50,000
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on LightStream
LightStream
5.0 NerdWallet’s rating is determined by our editorial staff. The scoring formula takes into account factors we consider to be consumer-friendly, including impact to credit score, fees and rates, customer experience and responsible lending practices.
5.0 NerdWallet’s ratings are determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be beneficial to consumers, including impact to credit score rate and fees, customer experience and ethical lending practices.
APR Rates quoted are with AutoPay. 6.99-23.99%
Loan amount $5,000 – $100,000
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on LightStream
LightStream
5.0 NerdWallet’s rating is determined by our editorial team. The scoring algorithm takes into consideration factors we consider to be beneficial to the consumer, such as impact on credit score, fees and rates as well as the customer’s experience and responsible lending practices.
5.0 NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account the factors we believe to be consumer-friendly, including impact to credit score, rates and fees as well as the customer’s experience and responsible lending practices.
APR Rates are based on AutoPay. 6.99-23.99%
The loan amount is $5,000 to $100,000.
on LightStream
on Axos
Axos
4.0 NerdWallet’s rating is determined by our editorial team. The scoring formula takes into account the factors we believe to be beneficial to the consumer, such as impact on credit score, fees and rates as well as the customer’s experience and responsible lending practices.
4.0 NerdWallet’s ratings are compiled by the editorial staff. The scoring formula takes into account aspects we consider to be a good choice for consumers, such as the impact on credit score rate and fees, customer service and responsible lending practices.
APR 7.99-14.99%
The loan amount is $5,000 to $50,000.
on Axos
on Upgrade
Upgrade
5.0 NerdWallet’s rating is determined by our editorial staff. The scoring formula is based on factors we consider to be consumer-friendly, including impact on credit score, rates and fees as well as the customer’s experience and responsible lending practices.
5.0 NerdWallet’s rating is determined by our editorial team. The scoring formula takes into account the factors we believe to be beneficial to consumers, such as impact to credit score, rates and fees as well as the customer’s experience and ethical lending practices.
APR 8.49-35.97%
Loan amount $1,000 – $50,000
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on SoFi
SoFi
5.0 NerdWallet’s ratings are determined by our editorial staff. The scoring formula takes into account aspects we consider to be a good choice for consumers, such as the impact on credit score, rates and fees customers’ experience, and responsible lending practices.
5.0 NerdWallet’s ratings are determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be beneficial to consumers, including impact to credit score, rates and fees customers’ experience, and responsible lending practices.
APR 7.99-23.43%
Amount of loan: $5,000 – $100,000
on SoFi
on the Best Egg
Best Egg
4.5 NerdWallet’s ratings are determined by our editorial team. The scoring algorithm takes into consideration aspects we believe are beneficial to the consumer, such as impact on credit score, fees and rates customers’ experience, and ethical lending practices.
4.5 NerdWallet’s ratings are determined by our editorial team. The scoring formula considers the factors we believe to be beneficial to consumers, including the impact on credit score, fees and rates as well as the customer’s experience and responsible lending practices.
APR 8.99-35.99%
Loan amount $2,000 – $50,000
on Best Egg
On Achieving
Reach your goals
5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula takes into account the factors we believe to be beneficial to consumers, such as the impact on credit score, rates and fees as well as the customer’s experience and ethical lending practices.
5.0 NerdWallet’s rating is determined by our editorial staff. The scoring formula is based on the factors we believe to be a good choice for consumers, such as the impact on credit scores, rates and fees, customer experience and ethical lending practices.
APR 7.99-29.99%
Loan amount $5,000 – $50,000
On Achieving
on OneMain Financial
OneMain Financial
4.0 NerdWallet’s ratings are determined by the editorial staff. The scoring algorithm takes into consideration factors we consider to be beneficial to the consumer, including the impact on credit score, fees and rates, customer experience and responsible lending practices.
4.0 NerdWallet’s rating is determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to the consumer, such as impact on credit score, rates and fees as well as the customer’s experience and ethical lending practices.
APR 18.0-35.99%
Amount of loan $1,500-$20,000
on OneMain Financial
on Upstart
Upstart
4.5 NerdWallet’s ratings are determined by our editorial team. The scoring algorithm takes into consideration aspects we consider to be consumer-friendly, including impact to credit score rates and fees, customer experience and ethical lending practices.
4.5 NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to the consumer, including the impact on credit score, fees and rates as well as the customer’s experience and responsible lending practices.
APR 6.5-35.99%
Loan amount $1,000 – $50,000
on Upstart
on the Best Egg
Best Egg!
4.5 NerdWallet’s ratings were determined by our editorial staff. The scoring algorithm takes into consideration the factors we believe to be consumer-friendly, including impact to credit score, fees and rates as well as the customer’s experience and responsible lending practices.
4.5 NerdWallet’s ratings are compiled by our editorial staff. The scoring algorithm takes into consideration the factors we believe to be consumer-friendly, including impact to credit score, rates and fees customers’ experience, and responsible lending practices.
APR 8.99-35.99%
The amount of the loan is $2,000 to $50,000.
on Best Egg
on Discover
Discover
5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring algorithm takes into consideration factors we consider to be beneficial to the consumer, including the impact on credit score, fees and rates as well as the customer’s experience and responsible lending practices.
5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula is based on aspects we believe are consumer-friendly, including impact to credit score, fees and rates as well as the customer’s experience and responsible lending practices.
APR 6.99-24.99%
The loan amount is $2,500 to $35,000
on Discover
on Achieve
Attain
5.0 NerdWallet’s ratings are determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be beneficial to the consumer, including impact on credit score, fees and rates customers’ experience, and responsible lending practices.
5.0 NerdWallet’s ratings are compiled by our editorial team. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including impact to credit score, rates and fees as well as the customer’s experience and responsible lending practices.
APR 7.99-29.99%
The loan amount is $5,000 to $50,000.
On Achieving
on SoFi
SoFi
5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula takes into account factors we consider to be beneficial to consumers, including the impact on credit score, rates and fees, customer service and responsible lending practices.
5.0 NerdWallet’s rating is determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be beneficial to consumers, including the impact on credit scores rate and fees, customer experience and ethical lending practices.
APR 7.99-23.43%
Amount of loan: $5,000 – $100,000
on SoFi
on Universal Credit
Universal Credit
4.5 NerdWallet’s ratings are determined by our editorial team. The scoring formula considers the factors we believe to be consumer-friendly, including impact to credit score, rates and fees customers’ experience, and ethical lending practices.
4.5 NerdWallet’s ratings are compiled by our editorial team. The scoring algorithm takes into consideration the factors we believe to be friendly to consumers, such as the impact on credit score, rates and fees customers’ experience, and responsible lending practices.
APR 11.69-35.93%
Loan amount $1,000 – $50,000
on Universal Credit
on Discover
Discover
5.0 NerdWallet’s rating is determined by our editorial team. The scoring formula takes into account aspects we consider to be beneficial to consumers, including impact on credit score, rates and fees, customer experience and ethical lending practices.
5.0 NerdWallet’s rating is determined by our editorial staff. The scoring formula takes into account factors we consider to be consumer-friendly, including impact to credit score, rates and fees as well as the customer’s experience and ethical lending practices.
APR 6.99-24.99%
Loan amount $2,500 – $35,000
on Discover
on Upstart
Upstart
4.5 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula considers aspects we consider to be beneficial to consumers, including impact to credit score fees and rates customers’ experience, and responsible lending practices.
4.5 NerdWallet’s ratings are determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including impact to credit score, fees and rates customers’ experience, and ethical lending practices.
APR 6.5-35.99%
Amount of loan: $1,000 – $50,000
on Upstart
on Achieve
Attain
5.0 NerdWallet’s rating is determined by our editorial staff. The scoring formula is based on the factors we believe to be friendly to consumers, such as the impact on credit score, rates and fees customers’ experience, and ethical lending practices.
5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula takes into account aspects we consider to be beneficial to consumers, including impact to credit score, fees and rates customers’ experience, and responsible lending practices.
APR 7.99-29.99%
The loan amount is $5,000 to $50,000.
on Achieving
on SoFi
SoFi
5.0 NerdWallet’s rating is determined by our editorial team. The scoring algorithm takes into consideration aspects we consider to be consumer-friendly, including impact to credit score rate and fees, customer experience and ethical lending practices.
5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula takes into account aspects we believe are consumer-friendly, including impact to credit score, rates and fees customers’ experience, and ethical lending practices.
APR 7.99-23.43%
The loan amount is $5,000 to $100,000.
on SoFi
on Best Egg
Best Egg
4.5 NerdWallet’s ratings are compiled by our editorial team. The scoring formula considers factors we consider to be consumer-friendly, including impact to credit score, rates and fees, customer experience and responsible lending practices.
4.5 NerdWallet’s ratings were determined by our editorial staff. The scoring formula considers aspects we believe are friendly to consumers, such as the impact on credit score, fees and rates customers’ experience, and ethical lending practices.
APR 8.99-35.99%
The amount of the loan is $2,000 to $50,000.
on the Best Egg
on LightStream
LightStream
5.0 NerdWallet’s rating is determined by our editorial team. The scoring algorithm takes into consideration aspects we believe are consumer-friendly, including impact to credit score, fees and rates customers’ experience, and responsible lending practices.
5.0 NerdWallet’s ratings are compiled by our editorial staff. The scoring formula is based on aspects we consider to be consumer-friendly, including impact on credit score, rates and fees customers’ experience, and ethical lending practices.
APR Rates are based on AutoPay. 6.99-23.99%
Amount of loan: $5,000 – $100,000
on LightStream
on SoFi
SoFi
5.0 NerdWallet’s rating is determined by our editorial staff. The scoring formula takes into account the factors we believe to be consumer-friendly, including impact on credit score, fees and rates customers’ experience, and responsible lending practices.
5.0 NerdWallet’s ratings are determined by our editorial staff. The scoring algorithm takes into consideration the factors we believe to be a good choice for consumers, such as impact to credit score rate and fees, customer experience and responsible lending practices.
APR 7.99-23.43%
Amount of loan: $5,000 – $100,000
on SoFi
on Universal Credit
Universal Credit
4.5 NerdWallet’s ratings are compiled by our editorial staff. The scoring algorithm takes into consideration the factors we believe to be beneficial to consumers, including impact to credit score, fees and rates, customer experience and responsible lending practices.
4.5 NerdWallet’s ratings are determined by our editorial staff. The scoring formula takes into account aspects we consider to be a good choice for consumers, such as the impact on credit score rates and fees, the customer experience and responsible lending practices.
APR 11.69-35.93%
Loan amount $1,000 – $50,000
on Universal Credit
on LendingClub
LendingClub
5.0 NerdWallet’s rating is determined by our editorial team. The scoring formula is based on factors we consider to be consumer-friendly, including impact to credit score, fees and rates, customer experience and responsible lending practices.
5.0 NerdWallet’s ratings are compiled by our editorial team. The scoring formula takes into account the factors we believe to be consumer-friendly, including impact to credit score, fees and rates, customer experience and responsible lending practices.
APR 8.3-36.0%
The amount of the loan is $1,000.
on LendingClub
on Upstart
Upstart
4.5 NerdWallet’s ratings were determined by our editorial team. The scoring formula considers the factors we believe to be consumer-friendly, including the impact on credit scores rate and fees, the customer experience and ethical lending practices.
4.5 NerdWallet’s ratings are compiled by our editorial staff. The scoring algorithm takes into consideration aspects we consider to be beneficial to consumers, including the impact on credit score, rates and fees, customer service and ethical lending practices.
APR 6.5-35.99 Percent
Amount of loan: $1,000 – $50,000
on Upstart
From top to bottom
5. Read the fine print
Before signing a loan, carefully read the terms and get answers to your concerns. Be sure to look for:
Fees. Prepayment penalties — charges to pay off the loan early — are uncommon, however lenders could charge other fees, including late payment and origination fees.
Automated withdrawals. If a lender is able to automatically withdraw loan checks from the checking account you have, you should consider creating a low-balance alert with your bank to avoid overdraft fees.
APR surprises. The total cost of your loan including interest, as well as any origination fees, should be made clear and calculated within the APR.
Also, search for lenders that offer options like reporting payments to the three major credit bureaus. They also allow borrowers to change their payment date or sending money borrowed directly to creditors who are owed loans for debt consolidating loans.
Return to the top
6. Apply for your job
After you’ve found the lender that best meets your requirements, you’ll need to apply officially . The requirements for applying can differ by lender, but you’ll probably require:
Identification: A passport driver’s license or passport State ID, Social Security card.
Verification of address: Utility bills or lease agreement.
Income proof: Pay stubs, bank statements , or tax returns.
The lender will run an extensive credit report that could reduce the credit rating of yours by just a couple points . This could appear in credit report reports over up to 24 months. After approval, you’ll receive your loan in accordance with the terms of the lender, usually within one week. Once you’ve received your funds, make a plan to pay back your loan and .
>> If your application is declined:
About the authors: Chanell Alexander is a former personal loans writer for NerdWallet.
Ronita Choudhuri-Wade covers personal loans in NerdWallet.
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