How to get a personal loan
Do you have a big expense that you don't have the cash to cover right now? Let a personal loan bridge the gap. Whether you need help with a big purchase or to pay down on an unexpected debt, having a personal loan can give you the financial support you need when you need it most.
Personal loans allow you access to cash without impacting other areas of your finances. 401K loans, home equity loans, and other types of loans can influence your retirement or your home. A personal loan is simply an agreement between you and a lender in which you agree to pay back capital that you have borrowed plus interest on a monthly payment plan. The process for securing a personal loan is intended to be as quick and painless as possible while still protecting the lender and the borrower.
Applying for a personal loan is not that different from most other loan types, but there is specific information that a lender will need to get your loan approved. If you are ready to apply, you should familiarize yourself with the application process so that you don’t run into any problems along the way. Learn more about the requirements and details you’ll need to apply for a loan, and then start your application today!
What are the requirements for a personal loan?
The requirements for a personal loan depends on the lender. However, there are a few factors that every lender will want to see before approving your loan. Before you begin the process, it is a good idea to review some of the common requirements to avoid issues when applying for your personal loan.
● Credit Score*: When you apply for a loan, it is common for your lender to complete a credit check to get an idea of your credit history and your score.
● Income: Lenders may use your income to determine if they will approve your application for a personal loan, they want to know if you have the means to pay the loan. They may look at your tax returns, pay stubs, and/or bank deposits for income verification.
● Debt-to-Income Ratio (DTI): This is a percentage that is a ratio between your gross monthly income and your monthly expenses such as rent or your mortgage. It is best to have a low DTI.
How do I know if I’m eligible for a personal loan?
After reviewing some of the most common requirements for personal loan eligibility, you hopefully have a better idea of the type of standing you will need to be approved. If you have fair credit and enough income or assets to pay for the loan, there is a good chance that you are eligible for a personal loan. Even in some unfavorable situations, some lenders are willing to work with you.
Check personal loan rates at Guaranteed Rate to get a better idea of what you may qualify for without impacting your credit score.
What does the application process look like?
After shopping around for a personal loan, you’ve finally settled on a choice and you’re ready to start the process. But what exactly does it take to complete a personal loan application? Being prepared for the application process could save you time. The application depends on your lender. However, there are a few aspects that are universal for lenders to have on their application. The process at Guaranteed Rate usually takes six steps from start to finish. Key details for applying are as follows:
- You’ll need to have basic information on income, desired loan amount, monthly expenses, and employment type. A social security number will be necessary at this point to prove your identity.
- Online lenders can decide in minutes if you’re approved or not. The application at Guaranteed Rate should only take about 10 minutes to complete.
- Once you’re approved, you should see the funds appear in your account in 1-to-2 business days.
- The first payment is typically due one month after receiving your funds.
How do I start on the application process for a personal loan?
Now that you know more about how to get a personal loan, personal loan eligibility, and personal loan requirements, you’re ready to start the process and get the cash you need as quickly and painlessly as possible.
Get additional information on personal loans from Guaranteed Rate and check our rates without impacting your credit score today!
* Guaranteed Rate does not provide credit counseling or credit repair services.