It is fairly easy to get a personal loan from PenFed because you’ll need a credit score of just 600+ to qualify. Other requirements to get a loan from PenFed include being at least 18 years old, having a bank account and having enough income to afford the loan.
Requirements to Get a Loan from PenFed
Minimum credit score: 600+
Minimum income: Not disclosed
Citizenship: U.S. citizen or permanent resident
Residency: All states as long as you are a member of the Pentagon Federal Credit Union
Identification: SSN or ITIN
You should have a good chance of approval if you meet all the requirements, but it is never guaranteed. The exact APR that you receive will depend on factors like your credit score, debt and income, too.
The minimum credit score for personal loan approval is 580, depending on the lender. That means it is possible to get an unsecured personal loan with a bad credit score, though such a loan will likely have an origination fee.
For your reference, WalletHub researched some of the most popular lenders to find out more about their specific loan requirements.… read full answer
Your credit score is a measure of how risky it is for lenders to let you borrow money. The higher your score is, the better your chances of approval are and the better terms you’re likely to receive. Your credit score comes from a combination of factors that include your payment history, credit utilization, length of credit history, recent inquiries, and diversity of accounts.
But your credit score is far from the only thing that matters when it comes to personal loan approval. Lenders consider many other factors, including your income, existing debts, monthly expenses and more.
The minimum credit score needed for a personal loan with no origination fee and no collateral requirement is 660, which is fair credit. And borrowers will need good credit or excellent credit – a credit score of 700 or higher – to get the best personal loan rates. Personal loans for credit scores under 700 tend to be for relatively low amounts and have high APRs.
If your credit score is below 585, lower in the bad credit range, you still have options. For example, you could opt for a secured loan, where you put up something valuable as collateral. If you fail to pay back the loan, the lender can take the collateral as compensation. Because this greatly reduces the risk for the lender, people with any credit score may be considered for secured loans.
Major personal loan requirements include being at least 18 years old, having a bank account, having a good credit history, and having enough income or assets to afford monthly loan payments. Specific personal loan requirements vary by lender, however. Avant requires a credit score of 600 or higher, for example, while … read full answerProsper sets the bar at 640 and SoFi asks for 680. Most lenders don’t disclose annual income requirements, but two exceptions are LendingPoint ($20,000+) and Citibank ($10,500+).
Some personal loans may have additional requirements, such as collateral to secure the loan. Lenders will also look at plenty of other factors when you apply, including your existing debt, employment status and housing payments.
Personal Loan Requirements
18+ Years Old
A loan is a binding contract, and most states won’t let you enter into a binding contract unless you are at least 18. Lenders generally do not offer loans to minors as a result.
SSN and U.S. Residency
Many (but not all) lenders will only make loans to U.S. citizens and permanent residents. You may be required to have a Social Security number. Some lenders allow applicants to use an Individual Taxpayer Identification Number or a Visa instead.
Lenders usually send the funds as a direct deposit to a bank account. Certain types of loans, such as ones where you provide collateral, may not require you to have a bank account. But most loans will.
Lenders need to be confident that you will repay the loan. So you will need to demonstrate that you have a source of income and/or significant assets. Lenders don’t generally disclose minimum income requirements, but you must be able to manage your monthly payments in addition to any other debts/expenses you have.
Credit Score of 585-700+
Lenders require applicants to meet a certain credit score threshold for approval. The most popular lenders usually require a credit score of at least 585 to 700. However, these requirements aren’t set in stone. Having a high income might help make up for a low credit score, and vice versa.
Reasonable Financial Obligations
If the lender determines that you already owe too much money relative to your income and assets (i.e. the amount you can afford to pay back), you probably won’t qualify. Lenders will also consider monthly expenses like housing payments that will decrease the amount of money you can put toward repaying a loan.
It’s not impossible to get a loan if you don’t have a job. But if you’re unemployed you’ll need a strong alternative source of income, such as a pension, government benefits or investments.
Overall, good credit and disposable income are the two most important personal loan requirements. You can check your latest credit score for free as well as compare personal loans based on their minimum credit score requirements on WalletHub. Lenders will be able to provide more detailed information about other requirements.
Although each lender is a bit different, the basics of the application and approval processes are pretty much the same. You can take the same general approach to maximize your odds of success, too.
Personal loan applications require several key pieces of personal information, including your name, SSN/ITIN, address and date of birth, along with financial information such as your yearly income and monthly mortgage/rent payments. It usually takes less than 7 business days to get a decision and to receive your money if you’re approved.
To get a personal loan from a bank, first check your credit score, then compare available offers to find the best rates, fees and payoff periods. After that, check for pre-qualification, submit an application either online or in person and wait for a decision. The steps may not sound all that complex, but preparing to get a loan can be time consuming.… read full answer
How to Get a Personal Loan from a Bank
Check Your Credit
The first step in getting a personal loan from a bank is always to check your credit score and reports because credit history is the biggest deciding factor for approval and most personal loans require a credit score of 660 or higher. There are some major banks that offer secured personal loans for people with bad credit, including Wells Fargo, PNC, Fifth Third Bank and KeyBank. But if your score is on the lower side, you may want to consider credit unions or online lenders instead, as they are more likely to offer personal loans for bad credit.
Choose Between the Available Offers
Next comes the most difficult part of the process, comparison shopping. WalletHub’s tool can help you find available loans from banks that cater to your credit level. From there, you can choose which loans are best for you based on their lengths, required payments, interest rates and more.
Check for Pre-qualification
Once you’ve decided on a few good options, you will want to check if you are pre-qualified for any of them. The bank may have a tool to do this on their website, or you may be able to check in a branch. If you want to get pre-qualified with multiple lenders at once, you can use WalletHub’s free pre-qualification tool. Getting pre-qualified means you have very high (but not 100%) chances of being approved. Pre-qualification also has no effect on your credit.
Apply Online or in Person
Eventually, you’ll settle on one personal loan. At that point, you can apply either online or at a bank branch. Applying online typically gives you the fastest decision, since it’s automated. But applying in-branch may plug you right into an automated system, too. And you’ll have the expertise of a banker with you.
Wait to Hear Back
In most cases, it won’t take long to receive a decision. You may get one instantly, and typically won’t have to wait more than a few business days. Occasionally, it could take up to a few weeks. After you’re approved, it will usually take at least one business day for the bank to transfer the funds to you.
There aren’t too many differences between how to get a personal loan from a bank and how to get one from other types of lenders. But there are a few. First off, you’re more likely to need a credit score of 660 or better to get a loan from a bank, while credit unions and online lenders are more likely to cater to people with subpar credit. In addition, unlike online lenders, banks offer the ability to apply in person. You can have a credit specialist sitting right there with you as you apply.
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