How hard is it to get a personal loan?

A personal loan generally it’s not hard to get, but some personal loans are much more difficult to get than others. Unsecured personal loans often require a credit score of 660+, and some are only available to people with scores of 700+.

Some unsecured personal loans are available to people with lower credit scores, but you have to watch out for predatory interest rates. For example, one good unsecured personal loan provider for bad credit is Avant, whose interest rates will only be as high as 35.99%. In contrast, a company like Opploans could charge as much as 199%.

A secured personal loan is a lot easier to get than an unsecured personal loan, as the collateral that you provide greatly reduces the lender’s risk. Even people with bad credit should have little trouble getting approved. The tradeoff is that the lender can take ownership of the collateral if you are unable to pay back your loan. So there’s a lot more risk for you as the borrower. You’ll have to decide if you have any collateral you’re willing to put on the line, such as an auto title, stocks, money in a certificate of deposit, or valuable art.

One thing that will make it extremely hard to get a personal loan is if you don’t have any kind of income. You need income to show that you’re capable of making monthly payments. You don’t necessarily have to be employed, however. Your income can come from other sources like a retirement account, alimony, disability payments and more.