To get approved for a personal loan, you need enough income or assets to afford monthly payments as well as a credit score of 580+ in most cases. You also need to be at least 18 years old and have a bank account that the lender can use to verify your income. If you meet the lender’s minimum requirements, you can apply for the loan online, over the phone or in person at a branch and get a decision the same day or within a few business days.
How to Get Approved for a Personal Loan
Make sure you meet the lender’s requirements. Some requirements to get approved include being at least 18 years old, having enough income to make the monthly payments and owning a valid bank account. Keep in mind that even if you meet all the requirements, approval is never guaranteed.
Pre-qualify for the loan. Checking to see if you’re pre-qualified for a loan will help you estimate your approval odds. If you get pre-qualified, it’s very likely that you’ll get approved if you officially apply. You can check with multiple lenders at once using the free pre-qualification tool on WalletHub.
Apply for the loan. When you apply for a loan, the lender will ask for information such as your name, address, date of birth, income and employment status.
Wait for approval and funding. You may get a decision the same day you apply or within a few business days. If you’re approved, you should receive your funds within a few business days.
You may want to consider boosting your credit score to improve your approval odds. You’ll typically need a credit score of 660 or higher to get a loan with no origination fee. Additionally, applying with a cosigner may improve your chances of getting a personal loan if they have a high credit score and income.
The easiest loans to get approved for are payday loans, car title loans, pawnshop loans and personal loans with no credit check. These types of loans offer quick funding and have minimal requirements, so they’re available to people with bad credit. They’re also very expensive in most cases.
Below, you can compare some of the easiest-to-get personal loans available right now.… read full answer
A personal loan from OppLoans is one of the easiest loans you can get approved for because there’s no credit check when you apply. All you’ll need is to be at least 18 years old, have U.S. citizenship or permanent residency, and have enough income to make your payments each month. Integra Credit and 60MonthLoans are two similar options.
Among lenders that do a credit check, the easiest loans to get approved for are from LendingPoint. This online lender requires a credit score of 580 or higher for approval. LendingPoint loans also range from $2,000 - $30,000, require repayment in 24 - 72 months, and have an APR range of 7.99% - 35.99%.
Types of Loans That Are Easy to Get
No Credit Check Loans
A no credit check loan is the easiest type of loan to get approved for, though it isn't necessarily the best choice for everyone. No credit check loans are usually quite a bit more expensive than loans from lenders that check your credit.
Unsecured Personal Loans
Many unsecured personal loans may be easy for people with bad credit to get approved for since they typically have a credit score requirement of 580 or higher. However, these loans are risky for lenders to offer since you do not have to put up collateral.
Secured Personal Loan
The reason secured personal loans are easy to get approved for is that you will have to put up collateral that the lender can keep if you don't pay the loan back. This minimizes the lender's risk, so the approval criteria are relatively easy to meet.
A payday loan is a small, short-term loan that you pay back with your next paycheck. But payday loans are incredibly expensive compared to normal personal loans, so they are not worth pursuing except as a last resort.
Emergency loans are personal loans that you can get within a few business days to pay for unexpected expenses such as hospital bills, auto repairs or fixing storm damage. They can offer up to $100,000 in funding, low minimum APRs and long repayment periods.
Hardship Loans from Local Government
All states offer hardship or disaster loans, whether it’s to help pay rent or to keep a small business afloat. These loans typically have eligibility requirements that are different from state to state.
Hardship Distribution from Your 401(k)
You can withdraw money from your 401(k) because of an important, immediate financial need. However, you cannot take out more than necessary to satisfy the need and you cannot repay the withdrawal.
A 401(k) loan lets you borrow money from your retirement account. You will need to repay the loan, along with interest, within 5 years of taking it out, or else there are taxes and penalties, in most cases.
A paycheck advance is a way to get a portion of your next paycheck from your employer earlier than scheduled. Not all employers offer this service, though.
Car Title Loans
Car title loans usually allow you to borrow anywhere from 25% to 50% of the value of your vehicle in exchange for the car’s title, which serves as collateral for the loan. This type of loan typically comes with a monthly finance fee of 25% and a short payoff term of 15-30 days, so be cautious.
A pawnshop will evaluate a personal item that you bring in as collateral and loan you a percentage of its value. Pawnshop loans offer instant cash but can sell your property if you fail to repay the loan.
You can be disqualified from getting a personal loan if you do not meet the lender’s credit score requirement. Not having enough income to afford the loan, having too much existing debt, not being at least 18 years old and not living in the U.S. can also disqualify you from getting a personal loan. You can find more details below.… read full answer
Here’s What Disqualifies You from Getting a Personal Loan:
You don’t meet the lender’s credit score requirement
You’ll typically need a credit score of 580+ to qualify for a personal loan from a reputable lender. To get a loan with a low APR and no origination fee, though, you’ll need to have a higher credit score.
You don’t have enough income to afford the loan
You’ll need to have an annual income of at least $10,500 to get a personal loan, in most cases. To confirm you have enough income, the lender may request documents such as W-2 forms, bank statements or pay stubs.
You have too much debt already
Having a lot of debt makes you look risky to lend to, which will deter lenders and decrease your chances of getting approved for a personal loan.
You have missing or incorrect information on your application
Missing or incorrect information on a personal loan application can keep you from getting approved. You need to go through your application thoroughly to make sure all of your information is correct before you submit it.
You want to use the money for something the lender prohibits
Some lenders prohibit you from using a personal loan for certain things. Examples of prohibited uses include illegal activities, buying stocks or bonds and, sometimes, secondary education expenses.
You are not at least 18 years old
Legally, a lender cannot approve a minor for a loan. You will need to be at least 18 years old, or the legal age to accept a loan in your state, to qualify.
You don’t live in the U.S.
Many lenders will require U.S. citizenship or permanent residency to grant you a loan. You also may need to have a Social Security number or an Individual Taxpayer Identification number to apply. Some lenders may let you apply with a visa or passport, though.
You can read more about the general requirements to get a personal loan here on WalletHub. If you think you can meet the requirements to get a personal loan, you can estimate your approval odds using our free pre-qualification tool. Keep in mind that even if you pre-qualify for a personal loan, you may not get approved.
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