How to apply for a personal loan in 4 easy steps

How to apply for a personal loan

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Step 1: Decide how much you need

The first step in choosing a personal loan is knowing how much you need. The smallest personal loans begin at around $600 (from a lender like credit union PenFed), but you'll more commonly see minimums of around $1,000. Getting a smaller loan can help ensure that you don't borrow more than you can afford to pay back.

PenFed Personal Loans Learn More Annual Percentage Rate (APR) 7.74% to 17.99% APR

Loan purpose Debt consolidation, home improvement, medical expenses, auto financing and more

Loan amounts $600 to $50,000

Terms 1 to 5 years

Credit needed Good/Excellent

Origination fee None

Early payoff penalty None

Late fee $29

If you need less than that, it might be easier to save up extra cash, borrow the money from a friend or family member or put the charge on your credit card. If you have good credit and don't need too much time to pay off your debt, a 0% APR credit card like the Citi Simplicity® Card could make more sense than a personal loan. The Citi Simplicity® Card has a 0% introductory APR for 12 months on purchases from date of account opening and 0% intro APR for 21 months from date of first transfer on balance transfers (then 17.74% - 28.49% variable APR thereafter). Balance transfers must be completed within 4 months of account opening.

Citi Simplicity® Card Learn More On Citi's secure site Rewards None

Welcome bonus None

Annual fee $0

Intro APR 0% for 21 months on balance transfers; 0% for 12 months on purchases

Regular APR 17.74% - 28.49% variable

Balance transfer fee Introductory fee of 3% ($5 minimum) for transfers completed within the first 4 months of account opening, then up to 5% ($5 minimum).

Foreign transaction fee 3%

Credit needed Excellent/Good Terms apply.

Step 2: Prequalify and compare offers

Once you know how much you need, you'll want to do some research and compare the rates and fees of different personal loan providers. An easy way to get started is with a loan comparison tool. Select's personal loan comparison tool asks you 16 questions, including your annual income, date of birth and Social Security number in order for Even Financial to determine the top offers for you. The service is free, secure and does not affect your credit score.

This tool is provided and powered by Even Financial, a search and comparison engine that matches you with third-party lenders. Any information you provide is given directly to Even Financial and it may use this information in accordance with its own privacy policies and terms of service. By submitting your information, you agree to receive emails from Even. Select does not control and is not responsible for third party policies or practices, nor does Select have access to any data you provide. Select may receive an affiliate commission from partner offers in the Even Financial tool. The commission does not influence the selection in order of offers. When you review a variety of loan offers using the tool above, you can get a better sense of the loans you'll be eligible for, including how much you could borrow, what your interest rate might be and the terms of the loan. Lenders like Marcus and LightStream also have prequalification forms on their websites. Select picked LightStream as the best personal loan lender overall because of its low interest rates and flexible terms.

LightStream Personal Loans Learn More Annual Percentage Rate (APR) 5.99% to 21.49%* when you sign up for autopay

Loan purpose Debt consolidation, home improvement, auto financing, medical expenses, wedding and others

Loan amounts $5,000 to $100,000

Terms 24 to 144 months*

Credit needed Good

Origination fee None

Early payoff penalty None

Late fee None Terms apply.

Submitting an application to prequalify for a loan is usually considered a "soft pull" and doesn't count as a hard inquiry on your credit report so it shouldn't hurt your credit score. Read the fine print to be sure, as most sites explain this upfront. For a soft inquiry, you'll need to provide the following information: Name, date of birth, address and (for most loans) social security/tax ID number

Annual income (including salary, wages, tips, bonuses and other forms of income)

Basic financial information (rent/mortgage payment, other major bills)

Requested loan amount and ideal term length Review your available offers and pick the one that works best for your timeline and budget. In general, the better your credit score, the more favorable your loan terms will be, though it is still possible to get a personal loan with bad credit. For instance, Upstart offers some of the easiest personal loans to be approved for because it considers factors beyond just your credit score, including your education, employment and work experience.

Upstart Personal Loans Learn More Annual Percentage Rate (APR) 6.5% to 35.99%

Loan purpose Debt consolidation, credit card refinancing, wedding, moving or medical

Loan amounts $1,000 to $50,000

Terms 36 and 60 months

Credit needed FICO or Vantage score of 600 (but will accept applicants whose credit history is so insufficient they don't have a credit score)

Origination fee 0% to 8% of the target amount

Early payoff penalty None

Late fee The greater of 5% of monthly past due amount or $15 Terms apply.

Step 3: Gather documents and submit the application

Once you review your loan options, you'll want to make a decision and submit a full application. Ideally, you do this only once because it's a hard inquiry on your credit report. The necessary documents will vary according to your lender, but typically you have to have proof of income and monthly expenses. Documents necessary to apply for a personal loan might include: Recent paystub(s)

Checking account statements for past three to six months

Photo ID

Proof of address

Education history (including highest level/degree achieved)

Other financial information (retirement account statements, outstanding debt, investment assets, etc.)

Preferred bank account for direct deposit If you need a co-signer for your loan, they'll also need to provide most of the same documents. Read over the terms carefully one last time, then submit your documentation. See if you're pre-approved for a personal loan offer.

Step 4: Wait for approval and funding

Approval can happen within the hour after you submit your application, or it could take five to 10 business days. If your application is approved, you can expect to see the amount of your loan, less any origination fees, in the bank account you listed for direct deposit. If you're taking out a debt consolidation loan, you might choose to have your funds sent directly to the credit card companies to pay off your balances. And if you don't sign up for a direct deposit, or your lender doesn't offer direct deposits, your lender will mail you a paper check. Once the money lands in your account, expect to make your first payment on the loan within 30 days. Double check to make sure you've signed up for autopay (you might even get an interest rate discount if you do). Add your monthly payment amount to your budget so that you never miss a bill, as on-time payments are important to keep your credit score in good shape. Most personal loan lenders provide repayment terms between six months and seven years. Catch up on Select's in-depth coverage of personal finance, tech and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

Apply for a Personal Loan

Montana residents: Please read the following disclosures and mark the following checkbox to acknowledge receipt & understanding.

Montana Schedule of Charges – Fee Disclosure and Failure to Pay Statements for

Lender OneMain Financial Group, LLC License Number 1339418

Loan Type Offered: Closed-end interest bearing personal loans. Annual Interest Rate: 9.99% to 35.99%.

Examples of the Total Cost to the Consumer for a Personal Loan:

Example using the highest interest rate chargeable 35.99%:

Amount Financed Agreed Rate of Interest Term of Loan Monthly Payment Amount Payment Schedule Total Cost of Loan $1,500 35.99% 24 $88.56 24 @ $2,125.44 $2,500 35.99% 24 $147.60 24 @ $3,542.40 $4,000 35.99% 36 $183.19 36 @ $6,594.84

Example using the lowest available interest rate 9.99%:

Amount Financed Agreed Rate of Interest Term of Loan Monthly Payment Amount Payment Schedule Total Cost of Loan $15,000 9.99% 36 $483.93 36 @ $17,421.48 $20,000 9.99% 36 $645.24 36 @ $23,228.64 $25,000 9.99% 48 $633.94 48 @ $30,429.12

Fees:

Returned Check Fee - $25.00

Late Charge – the greater of 5% of amount in default or $15.00 but not to exceed $50.00

Lien Recording Fee - the amount charged by the recording office, which will increase from time to time as the amount charged by the recording office increases. As of July 1, 2019, this amount is $4.12. This fee is charged only on loans secured by an automobile.

Request for Title Fee - the amount charged by the recording office, which will increase from time to time as the amount charged by the recording office increases. As of July 1, 2019, this amount is $12.36. This fee is charged only on loans secured by an automobile, when a new certificate of title is issued in connection with the loan, such as in the case of an automobile purchase.

UCC Financing Statement filing and release fees - the amounts charged by the recording office.

Reasonable Attorney Fees for any judicial action filed by OneMain, if permitted under the terms of the loan agreement.

Insurance Premiums

Credit Life Insurance: For loan terms up to and including 63 months, the charges are based on gross coverage. The initial amount of coverage is based on the initial indebtedness (the sum of the total monthly payments). The following sample rates, used to determine the premium, are quoted as the rate per $100 of gross coverage and based on an example of 12 months of coverage. Other loan terms may change the premium cost which is disclosed on the Loan documents and Insurance Certificate.

Single Rate = $0.80

Joint Rate = 175% of the Single Rate

Credit Involuntary Unemployment Insurance: The charges are based on the sum of the total monthly payments (Initial Indebtedness) and the applicable premium rate provided below. The following rates, used to determine the premium, are quoted as the rate per $100 of Initial Indebtedness.

Single Rate = $3.25

Joint Rate = 175% of the Single Rate for insurance in connection with loans of all term lengths

Credit Disability Insurance: The charges are based on the sum of the total monthly payments (Initial Indebtedness), number of months of coverage, and the applicable premium rate provided below. The following sample rates, used to determine the premium, are quoted as the rate per $100 of Initial Indebtedness and based on an example of 12 months of coverage. Other loan terms may change the premium cost which is disclosed on the Loan documents and Insurance Certificate.

Single Rate = $1.61

Joint Rate = 180% of the Single Rate

Creditor-Placed Insurance: Lenders obtain Creditor-Placed Insurance (CPI) when the borrower fails to provide proof of or maintain insurance coverage required by the loan agreement. CPI provides limited coverage and protects the lender's and customer’s interest in the collateral property. Rates are set forth here “Rating Basis” indicates the lesser of the value of the collateral or the outstanding principal balance of the loan. Values shown in the Term in Months columns indicate the premium amount. For example, if insurance were placed for 11 months with a Rating Basis of $5,000, the total premium would be $259.00

Triton Insurance Company

CREDITOR-PLACED LIMITED DUAL INTEREST COLLATERAL PROTECTION INSURANCE RATES

Rating Basis Term in Months

1 2 3 4 5 6 7 8 9 10 11 12 0 - 600 3 6 9 12 14 17 20 23 26 29 32 35 601 - 800 4 8 12 15 19 23 27 31 35 38 42 46 801 - 1,000 5 10 14 19 24 29 34 38 43 48 53 58 1,001 - 1,200 5 11 16 21 26 32 37 42 48 53 58 63 1,201 - 1,400 6 12 19 25 31 37 44 50 56 62 69 75 1,401 - 1,600 7 14 22 29 36 43 50 58 65 72 79 86 1,601 - 1,800 8 16 24 33 41 49 57 65 73 82 90 98 1,801 - 2,000 9 18 27 36 46 55 64 73 82 91 100 109 2,001 - 2,200 10 20 30 40 50 60 71 81 91 101 111 121 2,201 - 2,400 11 22 33 44 55 66 77 88 99 110 121 132 2,401 - 2,600 12 24 36 48 60 72 84 96 108 120 132 144 2,601 - 2,800 13 26 39 52 65 78 91 104 117 130 143 156 2,801 - 3,000 14 28 42 56 70 84 97 111 125 139 153 167 3,001 - 3,200 15 30 45 60 74 89 104 119 134 149 164 179 3,201 - 3,400 16 32 48 63 79 95 111 127 143 158 174 190 3,401 - 3,600 17 34 50 67 84 101 118 134 151 168 185 202 3,601 - 3,800 18 36 53 71 89 107 124 142 160 178 195 213 3,801 - 4,000 19 37 56 75 94 112 131 150 168 187 206 225 4,001 - 4,200 20 39 59 79 98 118 138 157 177 197 216 236 4,201 - 4,400 21 41 62 83 103 124 144 165 186 206 227 248 4,401 - 4,600 22 43 65 86 108 130 151 173 194 216 238 259 4,601 - 4,800 23 45 68 90 113 135 158 180 203 226 248 271 4,801 - 5,000 24 47 71 94 118 141 165 188 212 235 259 282 5,001 - 5,200 24 49 73 98 122 147 171 196 220 245 269 294 5,201 - 5,400 25 51 76 102 127 153 178 204 229 254 280 305 5,401 - 5,600 26 53 79 106 132 158 185 211 238 264 290 317 5,601 - 5,800 27 55 82 109 137 164 192 219 246 274 301 328 5,801 - 6,000 28 57 85 113 142 170 198 227 255 283 312 340 6,001 - 6,500 30 60 90 120 150 180 210 240 270 300 330 360 6,501 - 7,000 32 65 97 130 162 194 227 259 292 324 356 389 7,001 - 7,500 35 70 104 139 174 209 244 278 313 348 383 418 7,501 - 8,000 37 74 112 149 186 223 260 298 335 372 409 446 8,001 - 8,500 40 79 119 158 198 238 277 317 356 396 436 475 8,501 - 9,000 42 84 126 168 210 252 294 336 378 420 462 504 9,001 - 9,500 44 89 133 178 222 266 311 355 400 444 488 533 9,501 - 10,000 47 94 140 187 234 281 328 374 421 468 515 562 10,001 - 10,500 49 98 148 197 246 295 344 394 443 492 541 590 10,501 - 11,000 52 103 155 206 258 310 361 413 464 516 568 619 11,001 - 11,500 54 108 162 216 270 324 378 432 486 540 594 648 11,501 - 12,000 56 113 169 226 282 338 395 451 508 564 620 677 12,001 - 12,500 59 118 176 235 294 353 412 470 529 588 647 706 12,501 - 13,000 61 122 184 245 306 367 428 490 551 612 673 734 13,001 - 13,500 64 127 191 254 318 382 445 509 572 636 700 763 13,501 - 14,000 66 132 198 264 330 396 462 528 594 660 726 792 14,001 - 14,500 68 137 205 274 342 410 479 547 616 684 752 821 14,501 - 15,000 71 142 212 283 354 425 496 566 637 708 779 850 15,001 - 15,500 73 146 220 293 366 439 512 586 659 732 805 878 15,501 - 16,000 76 151 227 302 378 454 529 605 680 756 832 907 16,001 - 16,500 78 156 234 312 390 468 546 624 702 780 858 936 16,501 - 17,000 80 161 241 322 402 482 563 643 724 804 884 965 17,001 - 17,500 83 166 248 331 414 497 580 662 745 828 911 994 17,501 - 18,000 85 170 256 341 426 511 596 682 767 852 937 1,022 18,001 - 18,500 88 175 263 350 438 526 613 701 788 876 964 1,051 18,501 - 19,000 90 180 270 360 450 540 630 720 810 900 990 1,080 19,001 - 19,500 92 185 277 370 462 554 647 739 832 924 1,016 1,109 19,501 - 20,000 95 190 284 379 474 569 664 758 853 948 1,043 1,138 20,001 - 20,500 97 194 292 389 486 583 680 778 875 972 1,069 1,166 20,501 - 21,000 100 199 299 398 498 598 697 797 896 996 1,096 1,195 21,001 - 21,500 102 204 306 408 510 612 714 816 918 1,020 1,122 1,224 21,501 - 22,000 104 209 313 418 522 626 731 835 940 1,044 1,148 1,253 22,001 - 22,500 107 214 320 427 534 641 748 854 961 1,068 1,175 1,282 22,501 - 23,000 109 218 328 437 546 655 764 874 983 1,092 1,201 1,310 23,001 - 23,500 112 223 335 446 558 670 781 893 1,004 1,116 1,228 1,339 23,501 - 24,000 114 228 342 456 570 684 798 912 1,026 1,140 1,254 1,368 24,001 - 24,500 116 233 349 466 582 698 815 931 1,048 1,164 1,280 1,397 24,501 - 25,000 119 238 356 475 594 713 832 950 1,069 1,188 1,307 1,426 25,001 - 25,500 121 242 364 485 606 727 848 970 1,091 1,212 1,333 1,454 25,501 - 26,000 124 247 371 494 618 742 865 989 1,112 1,236 1,360 1,483 26,001 - 26,500 126 252 378 504 630 756 882 1,008 1,134 1,260 1,386 1,512 26,501 - 27,000 128 257 385 514 642 770 899 1,027 1,156 1,284 1,412 1,541 27,001 - 27,500 131 262 392 523 654 785 916 1,046 1,177 1,308 1,439 1,570 27,501 - 28,000 133 266 400 533 666 799 932 1,066 1,199 1,332 1,465 1,598 28,001 - 28,500 136 271 407 542 678 814 949 1,085 1,220 1,356 1,492 1,627 28,501 - 29,000 138 276 414 552 690 828 966 1,104 1,242 1,380 1,518 1,656 29,001 - 29,500 140 281 421 562 702 842 983 1,123 1,264 1,404 1,544 1,685 29,501 - 30,000 143 286 428 571 714 857 1,000 1,142 1,285 1,428 1,571 1,714 30,001 - 30,500 145 290 436 581 726 871 1,016 1,162 1,307 1,452 1,597 1,742 30,501 - 31,000 148 295 443 590 738 886 1,033 1,181 1,328 1,476 1,624 1,771 31,001 - 31,500 150 300 450 600 750 900 1,050 1,200 1,350 1,500 1,650 1,800 31,501 - 32,000 152 305 457 610 762 914 1,067 1,219 1,372 1,524 1,676 1,829 32,001 - 32,500 155 310 464 619 774 929 1,084 1,238 1,393 1,548 1,703 1,858 32,501 - 33,000 157 314 472 629 786 943 1,100 1,258 1,415 1,572 1,729 1,886 33,001 - 33,500 160 319 479 638 798 958 1,117 1,277 1,436 1,596 1,756 1,915 33,501 - 34,000 162 324 486 648 810 972 1,134 1,296 1,458 1,620 1,782 1,944 34,001 - 34,500 164 329 493 658 822 986 1,151 1,315 1,480 1,644 1,808 1,973 34,001 - 34,500 164 329 493 658 822 986 1,151 1,315 1,480 1,644 1,808 1,973 34,501 - 35,000 167 334 500 667 834 1,001 1,168 1,334 1,501 1,668 1,835 2,002 35,001 - 35,500 169 338 508 677 846 1,015 1,184 1,354 1,523 1,692 1,861 2,030 35,001 - 35,500 169 338 508 677 846 1,015 1,184 1,354 1,523 1,692 1,861 2,030 35,501 - 36,000 172 343 515 686 858 1,030 1,201 1,373 1,544 1,716 1,888 2,059 36,001 - 36,500 174 348 522 696 870 1,044 1,218 1,392 1,566 1,740 1,914 2,088 36,501 - 37,000 176 353 529 706 882 1,058 1,235 1,411 1,588 1,764 1,940 2,117 37,001 - 37,500 179 358 536 715 894 1,073 1,252 1,430 1,609 1,788 1,967 2,146 37,501 - 38,000 181 362 544 725 906 1,087 1,268 1,450 1,631 1,812 1,993 2,174 38,001 - 38,500 184 367 551 734 918 1,102 1,285 1,469 1,652 1,836 2,020 2,203 38,501 - 39,000 186 372 558 744 930 1,116 1,302 1,488 1,674 1,860 2,046 2,232 39,001 - 39,500 188 377 565 754 942 1,130 1,319 1,507 1,696 1,884 2,072 2,261 39,501 - 40,000 191 382 572 763 954 1,145 1,336 1,526 1,717 1,908 2,099 2,290 40,001 - 40,500 193 386 580 773 966 1,159 1,352 1,546 1,739 1,932 2,125 2,318 40,501 - 41,000 196 391 587 782 978 1,174 1,369 1,565 1,760 1,956 2,152 2,347 41,001 - 41,500 198 396 594 792 990 1,188 1,386 1,584 1,782 1,980 2,178 2,376 41,501 - 42,000 200 401 601 802 1,002 1,202 1,403 1,603 1,804 2,004 2,204 2,405 42,001 - 42,500 203 406 608 811 1,014 1,217 1,420 1,622 1,825 2,028 2,231 2,434 42,501 - 43,000 205 410 616 821 1,026 1,231 1,436 1,642 1,847 2,052 2,257 2,462 43,001 - 43,500 208 415 623 830 1,038 1,246 1,453 1,661 1,868 2,076 2,284 2,491 43,501 - 44,000 210 420 630 840 1,050 1,260 1,470 1,680 1,890 2,100 2,310 2,520 44,001 - 44,500 212 425 637 850 1,062 1,274 1,487 1,699 1,912 2,124 2,336 2,549 44,501 - 45,000 215 430 644 859 1,074 1,289 1,504 1,718 1,933 2,148 2,363 2,578 45,001 - 45,500 217 434 652 869 1,086 1,303 1,520 1,738 1,955 2,172 2,389 2,606 45,501 - 46,000 220 439 659 878 1,098 1,318 1,537 1,757 1,976 2,196 2,416 2,635 46,001 - 46,500 222 444 666 888 1,110 1,332 1,554 1,776 1,998 2,220 2,442 2,664 46,501 - 47,000 224 449 673 898 1,122 1,346 1,571 1,795 2,020 2,244 2,468 2,693 47,001 - 47,500 227 454 680 907 1,134 1,361 1,588 1,814 2,041 2,268 2,495 2,722 47,501 - 48,000 229 458 688 917 1,146 1,375 1,604 1,834 2,063 2,292 2,521 2,750 48,001 - 48,500 232 463 695 926 1,158 1,390 1,621 1,853 2,084 2,316 2,548 2,779 48,501 - 49,000 234 468 702 936 1,170 1,404 1,638 1,872 2,106 2,340 2,574 2,808 49,001 - 49,500 236 473 709 946 1,182 1,418 1,655 1,891 2,128 2,364 2,600 2,837 49,501 - 50,000 239 478 716 955 1,194 1,433 1,672 1,910 2,149 2,388 2,627 2,866

(includes 1% Blinder and 4% E&O)

How to Apply for a Personal Loan [6 Steps]

Whether you’re hit with an unanticipated home repair, facing a medical emergency, or trying to consolidate high-interest credit card debt, a personal loan could help alleviate the financial burden. With a personal loan, you may be able to borrow what you need and then pay it back over time with fixed monthly payments.

In This Article

How to Apply for a Personal Loan in 6 Steps

The personal loan application process can differ from one lender to the next, but the steps tend to be similar.

1. Check your rate.

Some lenders let you check your loan rate without submitting a formal application. At LendingClub Bank, we use information like your name, address, date of birth, income, and how much you want to borrow to see if you’re likely to qualify for a loan and provide an estimated rate. Checking your rate allows you to compare multiple potential loan offers and typically doesn’t impact your credit score.

2. Compare different loan options.

When you’re reviewing different loan options, be sure to compare:

APR: Your APR tells you how much it will cost you to borrow money, including the interest rate and fees. A higher APR means a higher total cost.

tells you how much it will cost you to borrow money, including the interest rate and fees. A higher APR means a higher total cost. Loan term: Generally, loans with shorter terms have higher monthly payments, but they could cost less in interest in the long run. On the other hand, longer terms may cost more over time, but the lower payments may be easier to manage.

Fees: Some lenders charge origination fees, processing fees, or prepayment penalties. Take these potential costs into account when comparing options.

Loan amount: Be sure to choose a loan that offers what you need and allows you to afford repayment.

Monthly payment: Make sure to choose a loan that offers a payment plan that works with your budget .

. Lender reputation: Not all lenders are created equal. Verify their credibility with the Better Business Bureau, read customer testimonials and reviews, and make sure they have a customer service team that’s both knowledgeable and available to answer any questions or concerns.

3. Complete your loan application and verify your identity.

Once you’ve decided on a lender, complete an official application. In most cases, you’ll be required to submit documentation that verifies your identity, residence, or income. This can include a photo copy of your government-issued photo ID, recent utility bills, or other documents. You can usually submit copies of required documents from your mobile device or your computer.

4. Wait for approval.

At LendingClub, most members are approved within a couple of hours. We also give you the ability to check your application status at any time.

5. Review your offer.

Your actual offer may be different than what it was when you checked your rate, so take care to review the terms in detail before accepting.

6. Accept your offer and receive your funds.

Once you accept an offer, funds can be deposited directly into your bank account. Most members are approved within a couple of hours and recieve funds fast.1

What to Do before You Apply for a Personal Loan

Before applying for a personal loan, take a minute to review your current finances. Having a good understanding of where you stand financially and what you need can save you time when applying for a personal loan.

Check your credit.

You can request a free copy of your credit report each year from each of the three major credit bureaus. When reviewing your credit report, make sure all of your debts are current and address any late payments or past due balances immediately. While this won’t erase the past—missed payments remain on your credit report for seven years—it can help show lenders you’re working on improving your financial situation.

You should also check for any errors to your credit report, as they can negatively impact your creditworthiness. If you do find errors, contest them immediately with one of the three major credit bureaus.

Even if you aren’t applying for a personal loan, occasionally checking your credit report for accuracy is one of the best ways to protect your credit.

Determine the amount you need to borrow.

Loan amounts vary depending on the lender, but at LendingClub Bank, you can choose loan amounts from $1,000 up to $40,000.

When determining the amount to borrow, consider how much you need for your loan purpose. Remember: you’ll be paying back the total amount of the loan plus interest, so choose an amount you can comfortably afford to repay. If you aren’t sure, our personal loan calculator can help you estimate monthly payments.

Get prequalified.

Most lenders allow you to check your potential loan rates online for free with a soft credit inquiry. Getting prequalified doesn’t guarantee you’ll get the loan, but it can give you a basic understanding of the loan offer you might receive. At LendingClub Bank, you can check your rate in minutes without impacting your credit score.

Consider a co-borrower?

If you’re still in the process of building your credit history or working to improve your credit score, you may want to consider adding a co-borrower to your loan application. A co borrower with a strong credit score and credit history can improve your chances of getting a loan with favorable terms.

How Your Personal Loan Application Is Reviewed

When applying for personal loans, the decisioning process varies. However, at LendingClub, we look at information from your application and credit report, as well as your payment history and other factors.

Credit score

A good credit score (670 or higher) is one of the key factors that all lenders use in determining whether you are eligible for a loan and the interest rate you’ll receive. If possible, work on improving your credit score before applying, or apply with a co borrower to strengthen your chances at getting approved.

Payment history

Payment history is a significant factor in determining your overall credit score and something most lenders look at when determining loan eligibility. If you have a solid history of repaying debts on time, it gives assurance that you’ll pay this debt back, too.

Income

Income is an important factor because it helps determine how much debt you can afford to repay. Most lenders will ask to see pay stubs or tax returns to show proof of income.

Debt-to-income ratio

Your debt-to-income ratio (DTI) compares your monthly debt obligations to your monthly gross income. A lower DTI can show the financial ability to repay debt on time.

How to Apply for a Personal Loan from LendingClub Bank

To borrow from LendingClub Bank, you must be at least 18 years old and a United States citizen or permanent resident, or live in the US on a valid, long term visa. We also require you to have a verifiable bank account.

Aside from reviewing information on your application, we look at your creditworthiness, credit score, and information that predicts you’ll be able to repay the loan—like your income and job history.

Applicants who qualify for the lowest rates have a high credit score, a low DTI, and a long history of successful credit lines.

The Bottom Line

A personal loan is a great way to consolidate high-interest debt or pay for an emergency or unexpected expenses. A fixed interest rate and fixed monthly payment allows for predictability which can help with your monthly budgeting. Making on-time payments towards a personal loan can also help to improve your credit score.2 Applying is easy and most applicants are approved in a couple of hours and receive funds fast.1

How to Apply for a Personal Loan FAQs

Why apply for a personal loan?

You can use a personal loan for many purposes, such as consolidating or paying down higher interest rate credit card debt, tackling home repairs, or covering unforeseen medical expenses. Personal loans from LendingClub Bank come with fixed rates and predetermined monthly payments, which can save you money on interest and help improve your overall financial picture.

What credit score do you need to get a personal loan?

While it’s possible to get a personal loan with a lower credit score, a FICO score that is considered good (670–739) or excellent (800 and above) can improve your chances for getting approved. Typically, the higher your credit score, the better your chance at receiving a loan offer with a lower interest rate.

What size personal loan can I apply for?

Personal loans can range from a few hundred to thousands of dollars. But in most cases you’ll be offered an amount based on what you can afford given the information on your application and credit report. You should also remember the more you borrow, the more you’ll pay in interest—so it’s usually best to ask for only what you need.

Will I qualify for a personal loan?

Many factors go into qualifying for a personal loan. Strong applicants will have a good credit score, proof of steady employment and income, and a low debt-to-income ratio.

Can you cancel a personal loan application?

If your loan application is approved, you’ll be sent an official offer, which you do not have to accept. If you do accept the loan and change your mind, there is often an option to cancel it, but that depends on who funded the loan. If you receive a loan through LendingClub Bank, you have five calendar days to change your mind. If you do want to cancel, make sure you keep all the money in your account—we'll try to withdraw it within 5–7 business days.

How long does it take to receive a personal loan?

The time it takes to receive your personal loan funds can vary by lender. At LendingClub Bank, most members are approved within a couple of hours and recieve funds fast.1

If my application is declined, can I apply again in the future?

If you’re declined for a personal loan, you’re typically welcome to go back and apply. If denied, lenders are required to send you an adverse action notice, which lists the reasons your application was declined. Review this notice and work to improve your financial situation. In some cases, reapplying with a co borrower or asking for a smaller loan amount can help strengthen your chances of getting approved.

1 Between April 2022 and June 2022, Personal Loans issued by LendingClub Bank were approved within 2 hours, on average. Loan approval, and the time it takes to issue a credit decision, are not guaranteed and individual results vary based on creditworthiness and other factors.

2 Reducing debt and maintaining low credit balances may contribute to an improvement in your credit score, but results are not guaranteed. Individual results vary based on multiple factors, including but not limited to payment history and credit utilization.