How to Get a Personal Loan in 7 Steps
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Personal loans from our partners
on SoFi
8.99-35.49%
$5K- $100K

on LightStream

6.49-25.29%
$5K- $100K
on Best Egg
6.99-35.99%
$2K- $50K
1. Check your credit
- 720 and higher: Excellent credit.
- 690-719: Good credit.
- 630-689: Fair or average credit.
- 300-629: Bad credit.
2. Calculate your loan payments
Borrower credit rating | Score range | Estimated APR |
---|---|---|
Excellent | 720-850. | 13.31%. |
Good | 690-719. | 16.48%. |
Fair | 630-689. | 20.23%. |
Bad | 300-629. | 20.62%. |
Loan details
Your loan estimate
Monthly payment
$212.47
$10,000
$2,748.23
$12,748.23
06 / 2030
Show amortization schedule
3. Research and compare lenders
- Credit score requirements: Online lenders tend to offer loans to borrowers with credit scores across the spectrum, while banks often require good to excellent credit, and credit unions are more likely to accept loan applications from bad-credit borrowers.
- Loan amount and repayment term availability: Personal loan amounts typically range from $1,000 to $100,000 with repayment terms from two to seven years. Look for lenders with loan amounts and repayment terms that match your borrowing needs.
- Funding time: You can expect to receive funds within a week after loan approval, but online lenders typically provide the fastest funding times, sometimes the same or next day after approving the loan application.
- Co-signed, joint and secured loan availability: Some lenders will allow you to add a co-signer or co-borrower to your loan application or pledge collateral to secure a loan. Opting for a co-signed, joint or secured loan may help you qualify or get a lower rate.
Expert take: Why research lenders?
"I have written or edited almost all of NerdWallet’s personal loan reviews, and one thing is for sure: They all have an ideal borrower in mind. If I had a high credit score and wanted to remodel my home, I’d be on the hunt for a lender that charges the lowest rates and offers large enough loans to finance the whole project. If my credit had seen better days but I needed a good rate on a debt consolidation loan, I’d start with lenders that specialize in consolidation.
This is why doing your research is so important. If you’re rate shopping with lenders that don’t see you as their ideal borrower, you could be missing out on a better offer elsewhere."

Assistant Assigning Editor, Personal Loans
4. Get pre-qualified personal loan offers
5. Select a lender and complete your application
- Identification: A passport, driver’s license, state ID or Social Security card.
- Verification of address: Utility bills or lease agreement.
- Proof of income: Pay stubs, bank statements or tax returns.
6. Read the fine print
- Fees. Prepayment penalties — fees for paying off a loan early — are rare, but lenders may charge other fees, including origination and late payment fees.
- APR surprises. The total cost of your loan, including interest and any origination fees, should be clearly disclosed and figured into the APR.
- Automatic withdrawals. If a lender automatically withdraws loan payments from your checking account, consider setting up a low-balance alert with your bank to avoid overdraft fees.
7. Sign loan agreement and get funded
What do you need to be eligible for a personal loan?
Specific credit score and income requirements for personal loans vary by lender. But most will ask you for basic personal information and proof of income during the personal loan application process.
Can you get a personal loan with bad credit?
Some lenders approve loan applications from borrowers with bad credit (a score below 630). Online lenders and credit unions are more likely to consider bad-credit borrowers than banks. Beware of predatory lenders that offer loans with short repayment terms and interest rates above 36%, the highest rate experts say an affordable personal loan should have.
How does a personal loan affect your credit?
When you apply for a personal loan, the lender will likely run a hard credit check, which can temporarily lower your credit score by a few points. On-time payments can help boost your credit while missed payments will hurt it.
Article sources
- 1. National Credit Union Administration. Payday Alternative Loans Final Rule. Accessed Apr 17, 2025.
- 2. National Bureau of Economic Research. Prodigals and Projecture: An Economic History of Usury Laws in the United States from Colonial Times to 1900. Accessed May 2, 2025.
- 3. Federal Register. Federal Interest Rate Authority: A Rule by the Federal Deposit Insurance Corporation on 07/22/2020. Accessed May 2, 2025.
- 4. Consumer Financial Protection Bureau. What Is a Debt Relief Program and How Do I Know if I Should Use One?. Accessed Jan 16, 2025.
- 5. Federal Reserve Bank of St. Louis. Finance Rate on Personal Loans at Commercial Banks, 24 Month Loan. Accessed May 23, 2025.
- 6. Consumer Financial Protection Bureau. Truth in Lending Act (TILA) examination procedures. Accessed May 2, 2025.
- 7. Experian and Oliver Wyman. Financial Inclusion and Access to Credit. Accessed Jan 23, 2025.
- 8. Internal Revenue Service. Canceled debt – Is it taxable or not?. Accessed Apr 1, 2025.
- 9. Consumer Financial Protection Bureau. What is a payday loan?. Accessed Apr 17, 2025.
- 10. Center for Responsible Lending. Payday and Other Small Dollar Loans. Accessed May 2, 2025.
- 11. National Credit Union Administration. Credit Union and Bank Rates 2024 Q4. Accessed May 23, 2025.
- 12. Federal Reserve. Military Lending Act. Accessed May 2, 2025.
- 13. Consumer Financial Protection Bureau. Consumer Use of Buy Now, Pay Later and Other Unsecured Debt. Accessed Jan 24, 2025.
- 9. Consumer Financial Protection Bureau. What is a payday loan?. Accessed May 2, 2025.
- 15. Center for Responsible Lending. Unsafe Harbor: The Persistent Harms of High-Cost Installment Loans. Accessed May 2, 2025.
- 16. Angi.com. How Much Does It Cost to Make My Home Accessible?. Accessed Nov 12, 2024.
- 17. Internal Revenue Service. Retirement Topics - Plan Loans. Accessed Apr 8, 2025.
- 9. Consumer Financial Protection Bureau. What is a payday loan?. Accessed Apr 4, 2025.
- 19. The Pew Charitable Trusts. Payday Loans Cost 4 Times More in States With Few Consumer Protections. Accessed Apr 4, 2025.
- 12. Federal Reserve. Military Lending Act. Accessed Apr 4, 2025.
- 21. Internal Revenue Service. Retirement topics: Exceptions to tax on early distributions. Accessed Apr 8, 2025.
- 22. Administrative Office of the U.S. Courts. Bankruptcy Basics. Accessed Apr 8, 2025.
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