How to Get a Personal Loan

To get a personal loan for the first time, you should start by checking your credit score and comparing relevant lenders based on factors like APRs, fees and loan amounts. Next, you need to choose the loan that works best for you, apply for it and wait for a decision and funding.

It usually takes up to 7 business days to get a personal loan. For the best results, check to see if you're pre-qualified by your chosen lender before submitting your application. You can check whether you're pre-qualified with multiple lenders at once using WalletHub's free prequalification tool. You can also see the full step-by-step process of getting a personal loan for the first time below.

How to Get a Personal Loan for the First Time in 5 Steps

1. Check your credit score.

   Checking your credit score helps you figure out which loans you can qualify for. Most major lenders have minimum credit score requirements in the 580 - 680 range. Some other lenders don't have a minimum credit score because they don't check your credit when you apply.

2. Pre-qualify, if possible.

   Some lenders let you pre-qualify before you officially apply. Checking to see if you pre-qualify will give you a sense of your approval odds as well as the rates you may receive.

3. Compare lenders.

   You'll need to compare lenders based on factors such as APRs, loan amounts, repayment periods and fees. To see the top ranked offers, check out WalletHub's picks for the best personal loans.

4. Apply for the loan.

   You can apply for a loan online, over the phone or in person at a branch. During the application process, you'll need to give the lender some personal and financial information, like your name, address, income and employment status.

5. Wait for a decision and funding.

   You may get a decision the same day you apply or a few business days after. Once you're approved, you should get your funds within a few business days.

You should also consider some alternatives to personal loans. Using a credit card or getting a loan from a friend or family member may be better options for you. You could also consider getting a credit-builder loan, but a credit-builder loan works differently than a personal loan.

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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.

Easy Loans to Get Approved For

• OppLoans: No credit check. 59% - 160% APR.
• 60MonthLoans: No credit check. 19% - 35.83% APR.
• Integra Credit: No credit check. 99% - 300% APR.
• LendingPoint: 580+ credit score required. 7.99% - 35.99% APR.

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 - $36,500, require repayment in 24 - 72 months, and have an APR range of 7.99% - 35.99%.

Types of Loans That Are Easy to Get

Payday Loan

A payday loan is a small, short-term loan that you pay back with your next paycheck. Because payday loan lenders don't check your credit, these loans are usually easy to get, but payday loans are incredibly expensive compared to normal personal loans, so they are not worth pursuing except as a last resort.

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.

Loan From a Friend or Family Member

You might find it easy to get a loan from a friend or family member, as they are less likely to be concerned with your credit.

Emergency Loans

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.

401(k) Loan

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. 

Paycheck Advance

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.   

Pawnshop Loans

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.

A personal loan is good to take out when your expense is necessary, the terms are better than other borrowing methods, and you know you can pay it off on time. Personal loans are particularly good to take out if you have a solid credit score and a steady income because this could help you get a low APR.

Personal loans help you improve your credit over time, too. They will slightly hurt your credit score in the short term, though.

When It Is Good to Take Out a Personal Loan

When your expense is necessary

Personal loans can be used for virtually anything. Some wise uses of a personal loan include consolidating debt or funding a home improvement project. Funding a vacation or a wedding are other examples of ways to use a loan, but it's better to use the money you've already saved for those activities.

When credit cards aren't a better option

People with good or excellent credit may find better long-term interest rates on personal loans rather than credit cards. However, there are plenty of credit cards with introductory 0% APRs for 12-18 months. Credit cards may be better for smaller purchases in this case.

When home equity loans and home equity lines of credit aren't a better option

Home equity loans and home equity lines of credit may have lower interest rates than personal loans and can allow you to borrow more. They use your house as collateral, though, and most personal loans do not require collateral.

When you're confident you can pay it off

Most personal loans require full repayment in 12 to 84 months. You have to make sure that you can afford the monthly installments, along with any other monthly expenses you have. You can use WalletHub's personal loan calculator to help you calculate your monthly and overall loan payments.

In the end, whether or not it's good to take out a personal loan depends on your financial situation. If you're ready to compare options, WalletHub's personal loan comparison tool can help you find a loan that meets your needs.

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.

Credit Score for Personal Loan Approval by Lender

*According to multiple third-party sources.

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.

You can check your credit score for free on WalletHub. You'll also get personalized advice for how to improve your score. The best way to estimate your odds of approval for a personal loan is to check to see if you're pre-qualified for any offers before submitting an official application.

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 Prosper 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.

Bank Account

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.

Steady Income

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.

Stable Employment

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.

Bottom Line

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.

The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates that they consider people with scores below the fair credit range (below 640). So even people with bad credit may be able to qualify.

Wells Fargo normally requires a credit score of 660 for their unsecured personal loans. However, they also offer secured personal loans that are available even with lower scores. Wells Fargo's secured loans require collateral in the form of money in a Wells Fargo savings account or CD.

Most banks that offer personal loans require a credit score of at least 660. Some require even higher scores, like Citizens Bank (680) and Barclays (700).

Easiest Banks to Get a Personal Loan From

These credit score requirements are either official info from the lender or the consensus of third-party sources.

The average person's credit score is over 660, which puts them in a decent position to qualify for a personal loan from most banks. But if your score is lower, you can apply with USAA or get a secured loan from Wells Fargo.

You might also want to look outside of banks. Some credit unions and online lenders offer better chances of being approved with bad credit. For example, Avant's minimum score requirement is reportedly 600 and LendingPoint's is 585.

It takes 7 business days or less to get a personal loan in most cases. The fastest you can get a personal loan is the same day you apply. The longest the process can take is over 30 business days. There are many factors that go into a personal loan decision and how long it takes to come. Two important ones are your creditworthiness and the accuracy of the information on your application.

The better your credit history is, the more confident issuers will be in approving your personal loan application. Higher income may also speed up the approval process. The accuracy of the information you submit is important, too, because if you make a mistake on your application – entering the wrong address or SSN, for example – the issuer may not be able to verify your identity or creditworthiness right away. They will have to contact you to request additional info.

How long it takes to get approved for a personal loan and how long it takes to get the money are likely to be different timeframes. In most cases, it's going to take at least one business day after approval for you to receive your funds. Some online lenders may be able to get you the money the same day.

Probably the most important factor in the personal loan timeline is where you're getting the loan from. WalletHub reached out to some of the biggest lenders to see how long it takes to get approved for their personal loans and when funds are paid out.

How long it takes to get a personal loan by issuer:

If you want to get approved for a personal loan as quickly as possible, there are a few steps you can take in order to speed the process along.

Tips to Get a Personal Loan Faster:

1. Check your credit report for any errors and dispute them. Incorrect or fraudulent information can hold your score back and prevent you from being approved.
2. Only apply for loans with credit requirements that you meet or exceed. This will give you the fastest decision timeline, as it will be easier for the lender to determine you qualify.
3. Check for pre-qualification before applying. If you receive pre-qualification, you're not guaranteed approval but your odds are very high.
4. Apply online for the fastest processing. Applying online immediately plugs your application in to the lender's automated system – you might even get a decision instantly.
5. Make sure all the information on the application is accurate. If you accidentally put the wrong address, SSN, etc., the lender will have to hold up your application and contact you to clear it up.

In addition to issuers' timelines for approval and funding, you should also include the preparation process in your time estimate. Before getting a personal loan, you should check your credit and compare offers from various lenders to find the best one available for your situation. You can check your credit for free in minutes. But you shouldn't rush through your research. Take as much time as you need to come to a decision, keeping in mind the length of the loan, estimated monthly payments, APRs and more.

You'll also want to take the time to check for pre-qualification if the lenders you're interested in allow it. Pre-qualification will give you a better idea of your approval odds. While you won't always be approved if you pre-qualify, your chances are extremely high. It only takes a few minutes to check for pre-qualification and it doesn't hurt your credit, so be sure to take advantage of it.

Personal loan pre-qualification is a way to estimate your chances of getting approved for a loan and the rates you would likely receive if approved before you apply. To get pre-qualified, you will have to provide some personal information to the lender so they can do a soft pull of your credit (which will not hurt your credit score).

You may hear pre-qualification and another term, pre-approval, used interchangeably, but they're technically a bit different. Some lenders may send you notice that you're “pre-approved” for a loan, which tells you that you're likely to get approved if you apply. Pre-qualification, on the other hand, lets you estimate how much of a loan you can get and what your potential rates are, but you will have to initiate the pre-qualification process. Getting pre-qualified means you have very high approval odds, too.

Get Pre-Qualified Now

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A good interest rate on a personal loan is 5.99% to 9%. The average APR for a two-year personal loan from a bank is 9.87, according to the Federal Reserve, and the best personal loans have APRs as low as 5.99% for the most creditworthy borrowers. The rates you get will depend heavily on your credit, income, debt and other financial factors.

The best way to get a decent interest rate on a personal loan is to comparison shop and get pre-qualified. WalletHub's free personal loan pre-qualification tool helps you see which lenders have a high chance of approving you, as well as what interest rates you are likely to get if approved. You can then compare your pre-qualified offers to see what a good interest rate on a personal loan is for you personally.

Good Interest Rate on a Personal Loan by Credit Level

1. For excellent credit (A score of 750 or above)

   You may be able to get interest rates as low as 5.99% - 8%. That's where the majority of lenders set their minimums.

2. For good/fair credit (A score of 640 to 749)

   You're unlikely to get the lowest interest rates available, nor should you have to pay lenders' maximums. Look at lenders' credit score requirements; the higher your score is above their minimum, the better your chances of getting a lower rate.

3. For bad credit (A score of 639 or below)

   You probably won't find rates lower than 25% to 36% from a bank or online lender. But personal loans from federal credit unions are capped at 18%.

   If you're planning on consolidating debt, a good interest rate on a personal loan is one that's significantly lower than the rates on your existing debt. But as you compare personal loan interest rates, don't neglect other terms.

   A low interest rate might not be as great as it seems if you also have to pay costly fees to go along with it. For example, many lenders charge “origination fees” of 1% to 6% of the loan amount as an extra cost for opening the loan.