By Ben Luthi
Edited by Samuel MountjoyHow to Get a Personal Loan: A Step-by-Step Guide
By Ben LuthiEdited by Samuel Mountjoy
Quick Answer
- To get a personal loan, start by checking your credit, deciding how much to borrow and estimating your monthly payment.
- Get prequalified with multiple lenders to compare rates, fees and repayment terms.
- Apply with the lender that offers the best deal, then review and accept the final loan offer.
A personal loan can help you cover a large expense, consolidate debt or pay for an unexpected expense. But before you apply, it's important to pin down exactly how much you need to borrow, what monthly payment you can afford and how to compare offers from different lenders.
Personal loans are available to borrowers with a range of credit scores, but your credit profile, income and debt can all affect whether you qualify and what terms you receive. Follow these seven steps to find the right personal loan for your needs and budget.
Here are seven steps to guide you through the process.
- Check your credit score
- Calculate how much you need to borrow
- Calculate an estimated monthly payment
- Get prequalified with multiple lenders
- Compare all loan terms
- Choose a lender and apply
- Review the offer and accept the loan
1. Check Your Credit Score
You don't need perfect credit scores to get approved for a personal loan. In fact, some lenders specialize in working with borrowers with bad credit. However, some of the best personal loan interest rates are reserved for borrowers who have a good FICO® ScoreΘ or better.
| FICO® Score Ranges | |
|---|---|
| Exceptional | 800 - 850 |
| Very good | 740 - 799 |
| Good | 670 - 739 |
| Fair | 580 - 669 |
| Poor | 300 - 579 |
You can check your FICO® Score for free with Experian to get an idea of where you stand. If your score needs some work, check your Experian credit report to understand which factors are impacting your score. Then, take action based on what you find.
Some possible ways to improve your credit before applying for a personal loan include the following:
- Pay down credit card balances.
- Get caught up on past-due payments.
- Avoid applying for new credit unless you need it.
- If you find information on your credit report you believe is inaccurate, you have the right to dispute it with the appropriate credit reporting agencies (Experian, TransUnion and Equifax).
- Register for Experian Boost®ø and get credit for positive rent, utility, phone and streaming payment history.
Compare personal loan rates
Find APRs from 5.96% to 35.99% and flexible terms of 12 to 120 months. Loan amounts range from $1,000 up to $250,000, with funding available the same day or up to 3 days.
Offers from our partners
Est. APR6.99 - 35.49%
Loan amount$5,000 - $100,000
Est. monthly payment$224 - $3,237
Term24 - 84 mo
Est. APR6.99 - 35.99%
Loan amount$2,000 - $50,000
Est. monthly payment$62 - $1,806
Term36 - 60 mo
Est. APR5.96 - 35.99%
Loan amount$1,000 - $75,000
Est. monthly payment$44 - $2,709
Term24 - 60 mo
Est. APR7.39 - 28.70%
Loan amount$20,000 - $250,000
Est. monthly payment$621 - $6,352
Term36 - 120 mo
Est. APR11.99 - 35.99%
Loan amount$1,500 - $30,000
Est. monthly payment$50 - $1,084
Term36 - 60 mo
Est. APR8.99 - 35.99%
Loan amount$2,000 - $50,000
Est. monthly payment$91 - $1,702
Term24 - 72 mo
Est. APR9.95 - 35.99%
Loan amount$2,000 - $35,000
Est. monthly payment$92 - $1,264
Term24 - 60 mo
Est. APR7.74 - 35.99%
Loan amount$1,000 - $75,000
Est. monthly payment$31 - $2,709
Term36 - 60 mo
Est. APR6.70 - 35.99%
Loan amount$1,000 - $50,000
Est. monthly payment$31 - $1,806
Term36 - 60 mo
Est. APR7.99 - 35.99%
Loan amount$3,500 - $40,000
Est. monthly payment$158 - $1,445
Term24 - 60 mo
Est. APR7.95 - 29.99%
Loan amount$5,000 - $50,000
Est. monthly payment$226 - $1,617
Term24 - 60 mo
Est. APR11.69 - 35.99%
Loan amount$1,000 - $50,000
Est. monthly payment$33 - $1,806
Term36 - 60 mo
Est. APR9.99 - 35.99%
Loan amount$1,000 - $35,000
Est. monthly payment$32 - $1,264
Term36 - 60 mo
Est. APR10.59 - 24.68%
Loan amount$5,000 - $50,000
Est. monthly payment$232 - $1,458
Term24 - 60 mo
Est. APR7.99 - 35.99%
Loan amount$2,000 - $30,000
Est. monthly payment$90 - $1,187
Term24 - 48 mo
Est. APR13.37 - 35.99%
Loan amount$1,000 - $15,000
Est. monthly payment$89 - $542
Term12 - 60 mo
Est. APR6.25 - 35.99%
Loan amount$15,000 - $50,000
Est. monthly payment$667 - $1,806
Term24 - 60 mo
View all of our Best Personal Loans for 2026 to see what you’re likely to qualify for, and the rates and terms you might get.
2. Calculate How Much You Need to Borrow
Understanding how much money you need can help you avoid borrowing too much or too little. Additionally, you may be able to weed out certain lenders based on the range of loan amounts they offer.
Keep in mind, too, that some lenders charge an origination fee, which is deducted from your loan disbursement. As a result, you may need to borrow a higher amount to account for the fee.
Example: Let's say you need to borrow $10,000, and the lender charges a 5% origination fee. Simply divide $10,000 by 0.95 to get roughly $10,527, which is the amount you need to borrow to cover the fee and still get a $10,000 loan disbursement.Learn more: How Much Can I Borrow With a Personal Loan?
3. Calculate an Estimated Monthly Payment
Once you know how much you need, research personal loan interest rates to get an estimate of what you might qualify for based on your credit profile. Then, use a personal loan calculator to calculate your monthly payments and total interest charges over the life of the loan.
Running the numbers can help you determine whether you can afford the payments on the amount you want to borrow and give you an idea of the total cost.
Example: Let's say you want to borrow $10,000 and, because you have a solid credit history, you believe you can qualify for an interest rate of around 10%. With a three-year repayment term, your monthly payment would be $332.67. Alternatively, a five-year repayment term would give you a monthly payment of $212.47.
Personal loan calculator
4. Get Prequalified With Multiple Lenders
You may be tempted to just apply with the bank or credit union with which you already have a financial relationship. However, while it can be helpful to have all of your finances under one proverbial roof, you may be able to save more money with a different lender.
The good news is that many of the best personal loans offer prequalification. This allows you to view and compare rate quotes with a soft credit inquiry, which won't impact your credit score.
The process typically only takes a few minutes, so try to get prequalified with at least three to five lenders to get a good sample of offers.
You can simplify the loan comparison process by using Experian's loan comparison platform, which matches you with loan offers from multiple partner lenders based on your credit profile. Within the loan comparison marketplace, Experian's No Ding Decline™⊛ feature lets you apply for certain personal loans using a soft pull, so your credit scores won't drop if you're not initially approved. That can help you find the best offers with more confidence.
Tip: Lenders who seem too good to be true often are. If they require an upfront payment or guarantee approval, it's a strong sign of a scam.
5. Compare All Loan Terms
While a personal loan's interest rate is the most important factor to consider, it's also crucial that you consider other loan terms, including:
- Requirements for credit scores: Not all lenders disclose their minimum score requirement publicly. However, you can get a sense of your approval odds and how your credit score might influence your loan terms by getting prequalified.
- Repayment terms: Personal loans may come with terms ranging from one to seven years, but some lenders offer more flexibility than others.
- Fees: Personal loans typically don't come with application fees or prepayment penalties, but some lenders charge origination fees. In some cases, the fee can be as high as 12% of the loan amount. If you have great credit, try to focus on lenders with no origination fees.
- Loan restrictions: You can generally use a personal loan for nearly anything, but some lenders may spell out some limitations. For example, you may be prohibited from paying for college expenses or buying investments. What's more, some lenders may only offer loans for specific purposes, such as debt consolidation.
- Funding time: Once you're approved, most lenders will fund your loan within a few days. But if your need for cash is urgent, try to find lenders that offer next-day or possibly even same-day funding. If you're consolidating debt, check to see if the lender is able to make a direct payment to your creditors.
- Discounts: Some lenders offer an interest rate discount if you set up automatic payments or if you have an existing relationship with the financial institution. Just keep in mind that lenders may incorporate those discounts into your quote.
6. Choose a Lender and Apply
Once you've decided which lender has the best offer, you can typically apply via the lender's website. The process can vary slightly depending on which one you choose, but in general, you'll need to provide the following information:
- Identity: You'll need to share your name, date of birth and Social Security number. You might also need to upload a copy of your driver's license or another government-issued photo ID.
- Contact information: This includes your address, email address and phone number.
- Employment and income: You may need to share your employment status, including your employer's name and contact information, as well as your gross annual income. In some cases, you may need to provide documentation, such as a recent pay stub, W-2 form, tax returns or bank statements.
- Housing status: You may be asked if you rent or own your residence and what your monthly payment is.
- Loan terms: You'll be asked how much you want to borrow and how you plan to use the funds. You may also have the option to share your desired repayment term.
Once you submit your application, the lender will formally review your creditworthiness. You can often get a decision within seconds, though some lenders may take more time to evaluate your financial and credit profiles.
Learn more: Where Can I Get a Personal Loan?
7. Review the Offer and Accept the Loan
Unlike prequalification, an official loan application typically requires a hard inquiry, which can impact your credit scores, albeit temporarily. This deeper dive into your creditworthiness allows the lender to give you a firm offer, which may or may not be the same as the initial quote.
Once you're approved, review the offer and the loan's terms and conditions to make sure it's the right fit. If your terms aren't quite what you expected, you can go back and apply with a different lender. If you're happy with the terms, sign the loan agreement, and the lender will disburse the loan funds based on its funding timeline.
Tip: If you're denied, lenders are required to inform you the reason why in an adverse action letter. After reviewing the letter, you can take action to remedy any issues before applying again.
Learn more: If I Get Approved for a Personal Loan, Do I Need to Accept It?
Frequently Asked Questions
Get Matched With Personal Loans Based on Your Credit Profile
Getting prequalified with multiple lenders can be time-consuming. Fortunately, Experian offers a loan comparison platform that lets you get matched with offers from multiple lenders at once based on your credit. This service speeds up the process for prequalification and also makes it easier to compare loan options side by side.
⊛Applying for loans labeled No Ding Decline™ won't hurt your credit scores if you aren't initially approved. Initial approval and/or acceptance of this loan may result in a hard inquiry, even if you're unable to pass final verifications, which may impact your credit scores.
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About the author
Ben Luthi
Ben Luthi has worked in financial planning, banking and auto finance, and writes about all aspects of money. His work has appeared in Time, Success, USA Today, Credit Karma, NerdWallet, Wirecutter and more.
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