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How to get a personal Loan in just 6 Steps

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How to Get a Personal Loan in 6 Steps
Getting a personal loan starts with checking your credit, getting pre-qualified and looking at loan alternatives.


,


The last update was on January 18, 2023.

A majority of the products we feature are from our partners who pay us. This impacts the types of products we feature as well as the place and way the product appears on a page. But this doesn't affect our assessments. Our opinions are our own. Here's a list and .



Steps Show More




Steps





The process of applying for a personal loan isn't necessarily difficult. Finding out where to begin with, what you'll need to know in order to apply and the best way to compare deals can help you decide on the best option for you .
Here are the steps to assist you in the process of searching for and obtaining the personal loan.
1. Verify your credit score

First check your credit score to evaluate your financial standing. A credit score that is high can allow you the chance to get personal loan and getting a lower interest rate.
Credit scores typically fall into these categories.
A score of 720 or higher is considered excellent credit.
690-719: Excellent credit.
630-689: Fair or average credit.
300-629: Bad credit.

Are you seeing a score that isn't as favorable? Make any corrections that are on your report that could affect your score. You can request a and challenge missed payments incorrectly reported or other inaccuracies it may contain.
Be sure to make timely payments toward debts like credit cards and loan payments, and keep the credit utilization (the extent of the credit you use relative to your credit limits) low since these are the most significant factors that impact your score.
>What's your credit score?
2. Calculate your loan payments

Then, figure out how much money you need to get from a loan. You'll want to make sure that amount includes any fees the lender may charge. , which range between 1% and 10% of the loan is usually subtracted from the loan funds.
Looking at your loan amount and credit score will give you an idea of the monthly and annual installments you could receive from a personal loan.
The loan term is also an important role in the amount a loan will cost. A longer loan time frame means less monthly payments, however you'll pay more in interest.
Use the calculator below to see estimates of your monthly payments based upon your credit score, loan amount and loan term. The best personal loans have monthly payments that can be easily incorporated into your budget.
From top to bottom

3. Pre-qualify for a loan

Being prequalified for personal loan provides you with a glimpse of the offers you may receive from lenders. Many online lenders and some banks offer a pre-qualification process that doesn't affect your score on credit.
During the , you must generally give details about yourself, like your name, birth date or income, as well as the loan goal.
By pre-qualifying for multiple lenders, you compare estimates of rates and amounts of payments.
See if you pre-qualify for a personal loan and not impact your score on credit.
Simply answer a few questions to receive personalized rates for our loan partners.
Loan purpose Select your option Consolidation of Debt Medical Home Improvement Credit Card Consolidation Auto Motorbike Major Purchase Begin a Business Education IRS Tax Debt Other

Loan amount

Credit score Select the option you want. Very Good Good Fair Poor

Status of employment Select your choice Full-time Part-time Self-employed Unemployed Military Retired Other



Check if you are pre-qualified



To strengthen your application think about a co-signed application or . including someone with excellent credit or a collateral asset may help you qualify or obtain a lower cost. Be aware that both options carry implications for co-applicants or collateral if you fail to repay.
>> MORE:
From top to bottom

4. Compare lenders and shop around

There are personal loans through online lenders, banks as well as credit unions. It is a good idea to look around and compare loan amounts along with monthly payment and interest rates of various lenders.
You can pre-qualify for a loan for loans, apply and get funds online. They are lenders who appreciate , and offer fast loans and loans to those with credit scores that span the spectrum.
such as , and offer like, and offer loans as well as existing account holders may benefit from flexible loan terms and rate discounts. If you've got decent or excellent credit score, look at your current lender for offers.
could offer lower interest rates and flexible terms, specifically for bad-credit borrowers. It's also the best option for loans of $2,500 or less. You must be a member of the credit union in order to apply for an loan and you must be prepared the application process, which could cause the credit score of your fall.

Personal loans through our partner companies
Debt Consolidation Big Purchase Emergency Home Improvement Medical

on LendingClub



LendingClub
5.0 NerdWallet's ratings are compiled by our editorial team. The scoring formula takes into account aspects we consider to be beneficial to consumers, including the impact on credit score, fees and rates as well as the customer's experience and ethical lending practices.



5.0 NerdWallet's ratings are compiled by our editorial team. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including impact on credit score, rates and fees customers' experience, and responsible lending practices.


APR 8.3-36.0%


Amount of loan: $1,000 - $40,000





on LendingClub





on Happy Money



Happy Money
4.5 NerdWallet's ratings are determined by our editorial staff. The scoring formula takes into account factors we consider to be friendly to consumers, such as the impact on credit score, rates and fees customers' experience, and responsible lending practices.



4.5 NerdWallet's ratings were determined by our editorial team. The scoring formula considers factors we consider to be friendly to consumers, such as the impact on credit score, fees and rates as well as the customer's experience and responsible lending practices.


APR 7.99-29.99%


Loan amount $5,000 - $40,000





on Happy Money





on PenFed Credit Union



PenFed Credit Union
5.0 NerdWallet's ratings are compiled by our editorial team. The scoring formula takes into account the factors we believe to be beneficial to the consumer, such as impact on credit score, rates and fees as well as the customer's experience and responsible lending practices.



5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula is based on the factors we believe to be consumer-friendly, including the impact on credit scores rates and fees, the customer experience and responsible lending practices.


APR 7.74-17.99%


Loan amount $600 - $50,000





on PenFed Credit Union





on the Upgrade



Upgrade
5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula is based on aspects we consider to be consumer-friendly, including impact on credit score, rates and fees customers' experience, and responsible lending practices.



5.0 NerdWallet's rating is determined by our editorial staff. The scoring formula is based on aspects we consider to be beneficial to consumers, including impact to credit score rate and fees, customer service and ethical lending practices.


APR 8.49-35.97%


Loan amount $1,000 - $50,000





On Upgrading





on Upstart



Upstart
4.5 NerdWallet's ratings were determined by our editorial staff. The scoring algorithm takes into consideration aspects we consider to be beneficial to consumers, including impact to credit score, rates and fees customers' experience, and responsible lending practices.



4.5 NerdWallet's ratings are compiled by our editorial team. The scoring algorithm takes into consideration factors we consider to be a good choice for consumers, such as impact to credit score rates and fees, the customer experience and ethical lending practices.


APR 6.5-35.99 percent


The amount of the loan is $1,000.





on Upstart





on LightStream



LightStream
5.0 NerdWallet's rating is determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be consumer-friendly, including impact to credit score, rates and fees, customer experience and responsible lending practices.



5.0 NerdWallet's ratings are determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including impact to credit score rate and fees, customer service and responsible lending practices.


APR Rates are based on AutoPay. 6.99-23.99%


Amount of loan: $5,000 - $100,000





on LightStream











on LightStream



LightStream
5.0 NerdWallet's rating is determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including impact to credit score, fees and rates, customer experience and ethical lending practices.



5.0 NerdWallet's rating is determined by our editorial staff. The scoring formula is based on the factors we believe to be consumer-friendly, including impact to credit score, rates and fees as well as the customer's experience and ethical lending practices.


APR Rates mentioned are for AutoPay. 6.99-23.99%


Loan amount $5,000 - $100,000





on LightStream





on Axos



Axos
4.0 NerdWallet's ratings are compiled through our team of editors. The scoring algorithm takes into consideration factors we consider to be friendly to consumers, such as the impact on credit score, rates and fees customers' experience, and responsible lending practices.



4.0 NerdWallet's ratings are determined through our team of editors. The scoring algorithm takes into consideration factors we consider to be a good choice for consumers, such as impact to credit score rate and fees, customer service and responsible lending practices.


APR 7.99-14.99%


The loan amount is $5,000 to $50,000.





on Axos





On Upgrading



Upgrade
5.0 NerdWallet's rating is determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be beneficial to consumers, including impact on credit score, fees and rates, customer experience and responsible lending practices.



5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account aspects we consider to be a good choice for consumers, such as impact on credit score, rates and fees as well as the customer's experience and responsible lending practices.


APR 8.49-35.97%


Loan amount $1,000 - $50,000





on Upgrade





on SoFi



SoFi
5.0 NerdWallet's ratings are determined by our editorial team. The scoring formula is based on factors we consider to be a good choice for consumers, such as the impact on credit score rate and fees as well as the customer's experience and ethical lending practices.



5.0 NerdWallet's ratings are determined by our editorial staff. The scoring formula takes into account aspects we consider to be beneficial to consumers, including impact to credit score fees and rates customers' experience, and responsible lending practices.


APR 7.99-23.43%


Amount of loan: $5,000 - $100,000





on SoFi





on Best Egg



Best Egg!
4.5 NerdWallet's ratings are determined by our editorial staff. The scoring formula considers factors we consider to be beneficial to the consumer, such as impact on credit score, fees and rates customers' experience, and responsible lending practices.



4.5 NerdWallet's ratings are compiled by our editorial team. The scoring formula considers the factors we believe to be consumer-friendly, including the impact on credit score, rates and fees as well as the customer's experience and responsible lending practices.


APR 8.99-35.99%


Loan amount $2,000 - $50,000





on Best Egg





On Achieving



Attain
5.0 NerdWallet's ratings are determined by our editorial team. The scoring formula is based on factors we consider to be beneficial to consumers, such as impact on credit score, fees and rates as well as the customer's experience and responsible lending practices.



5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring algorithm takes into consideration the factors we believe to be consumer-friendly, including impact to credit score rate and fees, the customer experience and ethical lending practices.


APR 7.99-29.99%


Amount of loan: $5,000 - $50,000





on Achieving











on OneMain Financial



OneMain Financial
4.0 NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to the consumer, including the impact on credit score, fees and rates, customer experience and ethical lending practices.



4.0 NerdWallet's rating is determined by our editorial team. The scoring formula takes into account factors we consider to be beneficial to the consumer, such as impact on credit score, fees and rates, customer experience and ethical lending practices.


APR 18.0-35.99%


Amount of loan $1,500-$20,000





on OneMain Financial





on Upstart



Upstart
4.5 NerdWallet's ratings are determined by our editorial staff. The scoring formula considers aspects we consider to be beneficial to consumers, including impact to credit score rates and fees, customer experience and ethical lending practices.



4.5 NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account the factors we believe to be friendly to consumers, such as the impact on credit score, rates and fees as well as the customer's experience and ethical lending practices.


APR 6.5-35.99 Percent


Amount of loan: $1,000 - $50,000





on Upstart





on the Best Egg



Best Egg
4.5 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account the factors we believe to be friendly to consumers, such as the impact on credit score, rates and fees, customer experience and responsible lending practices.



4.5 NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account aspects we believe are consumer-friendly, including impact to credit score, fees and rates customers' experience, and ethical lending practices.


APR 8.99-35.99%


Amount of loan $2,000 - $50,000





on Best Egg





on Discover



Discover
5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula is based on aspects we believe are consumer-friendly, including impact to credit score, fees and rates as well as the customer's experience and ethical lending practices.



5.0 NerdWallet's ratings are determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be consumer-friendly, including impact to credit score, fees and rates customers' experience, and ethical lending practices.


APR 6.99-24.99%


Loan amount $2,500 - $35,000





on Discover





On Achieving



Achieve
5.0 NerdWallet's rating is determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be friendly to consumers, such as the impact on credit score, fees and rates as well as the customer's experience and ethical lending practices.



5.0 NerdWallet's ratings are determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be beneficial to the consumer, including the impact on credit score, fees and rates customers' experience, and responsible lending practices.


APR 7.99-29.99%


Loan amount $5,000 - $50,000





on Achieve





on SoFi



SoFi
5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account aspects we consider to be beneficial to consumers, including impact to credit score rates and fees, the customer experience and ethical lending practices.



5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula is based on the factors we believe to be a good choice for consumers, such as impact to credit score, rates and fees, the customer experience and responsible lending practices.


APR 7.99-23.43%


Loan amount $5,000 - $100,000





on SoFi











on Universal Credit



Universal Credit
4.5 NerdWallet's ratings are compiled by our editorial team. The scoring formula takes into account factors we consider to be a good choice for consumers, such as impact to credit score, rates and fees, customer experience and ethical lending practices.



4.5 NerdWallet's ratings are determined by our editorial staff. The scoring formula takes into account aspects we believe are friendly to consumers, such as the impact on credit score, fees and rates customers' experience, and responsible lending practices.


APR 11.69-35.93%


Amount of loan: $1,000 - $50,000





on Universal Credit





on Discover



Discover
5.0 NerdWallet's ratings are determined by our editorial team. The scoring formula is based on aspects we consider to be consumer-friendly, including the impact on credit score, rates and fees customers' experience, and ethical lending practices.



5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring algorithm takes into consideration the factors we believe to be friendly to consumers, such as the impact on credit score, rates and fees, customer experience and responsible lending practices.


APR 6.99-24.99%


The loan amount is $2,500 to $35,000





on Discover





on Upstart



Upstart
4.5 NerdWallet's ratings are compiled by our editorial staff. The scoring algorithm takes into consideration the factors we believe to be a good choice for consumers, such as the impact on credit score fees and rates customers' experience, and responsible lending practices.



4.5 NerdWallet's ratings are determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be friendly to consumers, such as the impact on credit score, fees and rates, customer experience and ethical lending practices.


APR 6.5-35.99 Percent


The amount of the loan is $1,000.





on Upstart





on Achieving



Attain
5.0 NerdWallet's rating is determined by our editorial team. The scoring formula is based on aspects we believe are friendly to consumers, such as the impact on credit score, rates and fees, customer experience and ethical lending practices.



5.0 NerdWallet's rating is determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be a good choice for consumers, such as the impact on credit score, rates and fees as well as the customer's experience and responsible lending practices.


APR 7.99-29.99%


The loan amount is $5,000 to $50,000.





on Achieve





on SoFi



SoFi
5.0 NerdWallet's rating is determined by our editorial staff. The scoring formula takes into account aspects we consider to be beneficial to consumers, including the impact on credit score, rates and fees, customer service and responsible lending practices.



5.0 NerdWallet's ratings are compiled by our editorial team. The scoring algorithm takes into consideration the factors we believe to be consumer-friendly, including impact to credit score, rates and fees as well as the customer's experience and responsible lending practices.


APR 7.99-23.43%


The loan amount is $5,000 to $100,000.





on SoFi





on the Best Egg



Best Egg!
4.5 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account factors we consider to be friendly to consumers, such as the impact on credit score, fees and rates as well as the customer's experience and ethical lending practices.



4.5 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account factors we consider to be beneficial to the consumer, such as impact on credit score, rates and fees, customer experience and responsible lending practices.


APR 8.99-35.99%


Loan amount $2,000 - $50,000





on Best Egg











on LightStream



LightStream
5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring algorithm takes into consideration factors we consider to be beneficial to the consumer, including the impact on credit score, rates and fees as well as the customer's experience and ethical lending practices.



5.0 NerdWallet's rating is determined by our editorial team. The scoring formula is based on the factors we believe to be beneficial to consumers, including the impact on credit score, rates and fees customers' experience, and ethical lending practices.


APR Rates are based on AutoPay. 6.99-23.99%


Amount of loan: $5,000 - $100,000





on LightStream





on SoFi



SoFi
5.0 NerdWallet's ratings are determined by our editorial team. The scoring algorithm takes into consideration factors we consider to be a good choice for consumers, such as impact to credit score, fees and rates customers' experience, and responsible lending practices.



5.0 NerdWallet's ratings are compiled by our editorial staff. The scoring formula takes into account the factors we believe to be consumer-friendly, including the impact on credit scores rate and fees, customer experience and ethical lending practices.


APR 7.99-23.43%


The loan amount is $5,000 to $100,000.





on SoFi





on Universal Credit



Universal Credit
4.5 NerdWallet's ratings are determined by our editorial staff. The scoring algorithm takes into consideration factors we consider to be beneficial to consumers, including impact on credit score, fees and rates as well as the customer's experience and responsible lending practices.



4.5 NerdWallet's ratings are determined by our editorial staff. The scoring algorithm takes into consideration aspects we consider to be a good choice for consumers, such as impact to credit score rate and fees, the customer experience and ethical lending practices.


APR 11.69-35.93%


Amount of loan: $1,000 - $50,000





on Universal Credit





on LendingClub



LendingClub
5.0 NerdWallet's ratings are determined by our editorial team. The scoring formula is based on aspects we believe are friendly to consumers, such as the impact on credit score, fees and rates customers' experience, and ethical lending practices.



5.0 NerdWallet's ratings are determined by our editorial team. The scoring algorithm takes into consideration factors we consider to be beneficial to the consumer, including the impact on credit score, fees and rates, customer experience and responsible lending practices.


APR 8.3-36.0%


Amount of loan: $1,000 - $40,000





on LendingClub





on Upstart



Upstart
4.5 NerdWallet's ratings were determined by our editorial staff. The scoring formula takes into account factors we consider to be beneficial to consumers, such as the impact on credit scores, rates and fees, the customer experience and ethical lending practices.



4.5 NerdWallet's ratings were determined by our editorial team. The scoring algorithm takes into consideration the factors we believe to be beneficial to consumers, including impact to credit score rates and fees, the customer experience and ethical lending practices.


APR 6.5-35.99 percent


Loan amount $1,000 - $50,000





on Upstart


















From top to bottom

5. Check the fine print

Before signing an loan, carefully go through the loan's terms and conditions and seek answers to your concerns. Particularly, look out for:
Fees. Prepayment penalties -- charges for repaying a loan early -- are very rare, but lenders can be charged additional fees, like late payment and origination charges.
Automated withdrawals. If a lender automatically withdraws loan checks from the checking account you have, think about creating a low balance alert with your bank to avoid charges for overdrafts.
APR surprises. The total cost of your loan, including interest and any fees for origination, must be disclosed clearly and factored into the APR.
Also, search for lenders who offer services the option of paying the three major credit bureaus. They also allow borrowers to change their payment date or sending borrowed funds directly to creditors who are owed the debt consolidation loans.
From top to bottom

6. Complete your application

After you've found the lender that best meets your requirements, you'll be able to apply make an application in writing . It is possible to apply for a loan with different requirements depending on the lender, but you'll most likely need:
Identification: Passport driver's license, driver's licence or state ID. Security card.
Verification of address Address verification: Utility bills or lease agreement.
Documentation of income: Pay stubs, bank statements or tax returns.

The lender will conduct a hard credit check that could reduce your credit score by a few points and can appear on credit reports for 24 months. Once you've been approved you'll get your loan according to the terms of the lender, usually within of a week. Once you have your funds set out a plan to repay the loan and .
If your application is declined:


About the authors: Chanell Alexander is a former personal loans writer for NerdWallet.


Ronita Choudhuri-Wade is the private loans in NerdWallet.







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