How to Apply for a Personal Loan
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A personal loan can be used to cover almost any personal expense, such as a major purchase or an unexpected emergency. Additionally, many lenders offer quick funding — which could make a personal loan a good option if you need fast access to cash.
Here’s how to apply for a personal loan:
- Know your credit score
- Check if you can get prequalified for loans from multiple lenders
- Complete your loan application
- Close the loan and receive your funds
- What to do if your loan application is denied
1. Know your credit score
When you apply for a personal loan, the lender will review your credit to determine your creditworthiness. You’ll typically need good to excellent credit to qualify. A good credit score is usually considered to be 700 or higher.
Your credit will also impact the kind of rates you’re offered. In general, the higher your credit score, the better your rate will be. Having good credit can also make it easier to borrow larger amounts.
Because of this, it’s a good idea to check your credit before you apply so you’ll know where you stand.
Learn More: Personal Loan Calculator: See Your Payments On a Loan
2. Check if you can get prequalified for loans from multiple lenders
It’s important to shop around and compare as many personal loan lenders as possible. This way, you can find a loan that suits your needs.
Many lenders provide the option to prequalify for a loan. This gives you the option to see your personalized rates from a lender before applying. In most cases, this only requires a soft credit check that won’t hurt your credit — for example, you can compare your prequalified rates from Credible’s partner lenders with no impact on your credit.
- Interest rate: Your loan interest rate will play a major role in determining your overall loan cost. There are a few factors that will impact the rates you’re offered, such as your credit and the repayment term you choose.
- Repayment terms: You’ll typically have one to seven years to repay a personal loan, depending on the lender. It’s usually best to choose the shortest term you can afford to keep your interest costs as low as possible. Many lenders also offer lower rates to borrowers who opt for shorter terms.
- Loan amounts: With a personal loan, you can generally borrow $600 to $100,000 or more, depending on the lender. Be sure to borrow only what you need to keep your future repayment costs manageable.
- Fees: Lenders sometimes charge fees on personal loans — such as origination fees or late fees — that can increase your total loan cost.
- Time to fund: It usually takes about one week to get your funds if you’re approved. There are also some lenders that offer faster loan funding, which could be helpful if you need your money quickly.
Once you’ve compared lenders, pick the loan option that best suits your needs.
3. Complete your loan application
After you’ve chosen a lender, you’ll need to fill out a full application and submit any required documentation — such as pay stubs or tax returns.
If you work with an online lender, this process is handled completely online. Because of this, online lenders tend to be the fastest option for getting a personal loan. If you want to take out a personal loan with a traditional bank or credit union, you might be required to visit a branch in person.
Check Out: Best Personal Loans for Borrowers With Good Credit
4. Close the loan and receive your funds
After you submit your application and documentation, you’ll need to wait for an approval decision. With an online lender, you could get a decision in just a few minutes. But in other cases, it might take up to a week, such as if your application requires further review.
If you’re approved, the lender will have you sign for the loan so the funds can be released to you. The time to fund for a personal loan is usually about one week — though some lenders will fund loans as soon as the same or next business day after approval.
Loan repayment process
After you get your loan funds, you’ll begin the loan repayment process. It’s important to make each of your payments on time to avoid potential late fees.
Keep in mind that by paying your loan on time, you can also establish a positive payment history — which could help improve your credit over time.
Learn More: Best Personal Loans for Fair Credit
What to do if your loan application is denied
If you apply for a loan and are denied, it doesn’t necessarily mean you’re out of luck — you might still be able to qualify for a personal loan in the future.
Here are some further options to consider:
- Review your credit report. If there are any errors that are dragging down your credit score, dispute them with the appropriate credit bureau to possibly boost your score.
- Find a cosigner. If you’re struggling to get approved for a personal loan, applying with a creditworthy cosigner could improve your chances. Not all lenders allow cosigners on personal loans, but some do. Having a cosigner might also get you a better interest rate than you’d get on your own.
- Apply for a smaller loan amount. Lenders want to see that you can afford to repay your loan — which is why you might get denied for a large loan amount if you have insufficient income. In this case, consider applying for a smaller loan amount that’s more manageable.
- Shop around with additional lenders. Just because one lender turned you down doesn’t mean that all lenders will. For example, if you were denied because of a lower credit score, you’ll likely have an easier time getting approved by lenders that specialize in working with borrowers who have poor or fair credit.
If you’re ready to apply for a personal loan, remember to shop around and compare as many lenders as you can to find the right loan for your situation. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.
| Lender | Fixed rates | Loan amounts | Min. credit score | Loan terms (years) | Cosigners allowed? |
|---|---|---|---|---|---|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
9.95% – 35.99% APR | $2,000 to $35,000** | 550 | 2, 3, 4, 5* | No |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
6.79% – 17.99% APR | $10,000 to $50,000 | 700 | 3, 4, 5, 6 | No |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
4.99% – 35.99% APR | $5,000 to $35,000 | 600 | 3, 5 | No |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
5.99% – 24.99% APR | $2,500 to $35,000 | 660 | 3, 4, 5, 6, 7 | No |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
7.99% – 29.99% APR | $10,000 to $50,000 | Not disclosed by lender | 2, 3, 4, 5 | Yes |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
7.04% – 35.89% APR | $1,000 to $40,000 | 600 | 3, 5 | Yes |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
9.99% – 35.99% APR | $2,000 to $36,500 | 580 | 2, 3, 4 | No |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
2.49% – 19.99% APR | $5,000 to $100,000 | 660 | 2, 3, 4, 5, 6, 7 (up to 12 years for home improvement loans) |
Yes |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
6.99% – 19.99% APR1 | $3,500 to $40,0002 | 660 (TransUnion FICO®️ Score 9) |
3, 4, 5, 6, 7 | No |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
18.0% – 35.99% APR | $1,500 to $20,000 | None | 2, 3, 4, 5 | Yes |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
5.99% – 24.99% APR | $5,000 to $40,000 | 600 | 2, 3, 4, 5 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
4.99% – 17.99% APR | $600 to $50,000 (depending on loan term) |
660 | 1, 2, 3, 4, 5 | No |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
6.95% – 35.99% APR | $2,000 to $40,000 | 640 | 3, 5 | No |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
5.74% – 20.28% APR10 | $5,000 to $100,000 | Does not disclose | 2, 3, 4, 5, 6, 7 | Yes |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
8.93% – 35.93% APR7 | $1,000 to $50,000 | 560 | 3 to 5 years 8 | No |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
5.94% – 35.97% APR | $1,000 to $50,000 | 560 | 2, 3, 5, 6 | No |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. |
4.37% – 35.99% APR4 | $1,000 to $50,0005 | 580 | 3 to 5 years4 | No |
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About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.99-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.
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