How to Get a Personal Loan in 5 Easy Steps

Before you start the application process, decide how much money you need.

Personal loan amounts typically range from $1,000 to $50,000,¹ but that doesn’t mean you should borrow as much as possible. You have to repay the full amount and any accrued interest, so don’t commit to a loan you can’t afford.

For you to get a loan you can afford, consider:

• How much money you need to cover the expense
• Whether you can use your savings to cover some of the expense
• Your income and ability to repay the loan

Apply for the smallest loan possible to cover your expenses. A smaller loan means you can opt for a shorter loan term to minimize the amount of interest you pay or a longer loan term to keep your repayments lower.

Learn how to calculate interest on a loan before applying so you know what to expect.

Your credit score and history can show lenders how well you handle your existing debt. Lenders can then use this information to assess your credit risk and offer you appropriate loan terms.

Knowing your credit score before applying for a loan can prevent surprises. Check your credit report through one of the major credit bureaus – Equifax, Experian, or TransUnion.

FICO^® Score ranges are as follows²:

Lenders are more likely to offer better terms and a lower interest rate if you have a good to exceptional (670+) credit score.

However, if your score is considered “poor” (under 580), you may have a harder time finding the best personal loan terms and will have a lower likelihood of loan approval.

If your credit score needs work, there are a few things you can do to boost it before applying for a personal loan:

• Getting a secured credit card
• Paying down your existing debt
• Making on-time bill payments
• Removing collections from your credit report

Next, shop around with different lenders for the best rates and terms. When you compare loans, consider each lender’s available loan amounts, annual percentage rates (APR) or interest rates, and term lengths.

The following are some notable personal loan options for 2025, in no particular order.

These personal loan rates and term lengths are accurate as of 5/13/25. This table is for informational purposes only and is not intended to offer financial advice.

Personal loan requirements can vary between lenders, but having the following can increase your chances of approval and a reasonable APR.

• Good credit score: If you have a FICO^® score of 670 or above, you have a decent shot at getting favorable personal loan terms. Your approval odds may drop if it drops below 579 (“poor” credit).²
• Proof of income: Lenders look at your tax returns, bank statements, or pay stubs to determine your likelihood of being able to make monthly loan repayments. If your income is low or unpredictable, you might have more difficulty qualifying for a personal loan.
• Low debt-to-income (DTI) ratio: Many lenders want your DTI ratio to be under 36%, though the exact number can differ between lenders.¹ To calculate your DTI ratio, divide your monthly expenses by your gross monthly income.

Once you’ve compared loans, review each lender’s eligibility criteria and see how factors like your credit history and income stack up.

If you’re unsure of your borrowing power or approval odds, get pre-qualified or pre-approved to see your loan term options.

Once you’re ready to apply, gather the necessary paperwork and information. Most lenders require the following¹⁰:

• Social Security number
• Contact information, including your address, phone number, and email.
• Proof of identity, such as a birth certificate, driver’s license, passport, military ID, certificate of citizenship, or state ID
• Proof of address, like a bill or lease
• Income verification in the form of pay stubs, W-2s, or tax returns for the previous year

You can complete an application form online or in person at a bank branch.

Some lenders may review and approve your loan on the same day, while others take longer to return a decision.

Some lenders charge an origination fee, which they deduct from the total amount of cash you receive from the loan. This fee goes toward the cost of processing your application. A typical origination fee is between 1% and 10% of the total loan amount.

Once the lender has made a decision on your application, they will communicate that decision to you.

If you’re approved, the lender will send you the final loan documents detailing the:

• Loan amount
• Interest rate
• Loan term
• Repayment terms

If the terms they send work for you, you can accept the personal loan offer and wait for the lender to send you the funds.

But don’t be discouraged if the lender denies your application. A denial can happen if your credit score is too low, you have too much unresolved debt, or you ask for more money than the lender thinks you can reasonably repay.

If a lender denies your personal loan application, here are a few things you can do to increase your approval odds when you reapply:

• Pay off credit card debt
• Find and remove incorrect information from your credit report
• Look for ways to grow your income
• Ask someone you know to cosign the loan
• Apply for a smaller loan amount

Review the terms carefully before accepting the offer, and consider applying with a different lender if they don’t meet your expectations. If everything looks good, accept the offer.

Depending on the lender, you might see the money in your account the day of approval or within one to five business days.¹¹ Most lenders deposit the funds directly into your account, but some may mail a check instead.

In some cases, the lender may deny your application. The Fair Credit Reporting Act requires lenders to provide you with an explanation if your loan application is rejected.¹²

If this happens, learn how to build or boost your credit to increase your approval odds when you reapply.

Personal loans can be helpful when you need cash quickly to pay for an unexpected expense. However, they’re not the only option.

Here are some personal loan alternatives:

Home equity loan or line of credit

If you own your home, you can borrow against your equity via a home equity line of credit (HELOC) or home equity loan. These secured loans use your home as collateral, resulting in lower average APRs than personal loans.

However, failing to repay the loan as promised can result in the loss of your home.

Learn the differences between a line of credit and a loan to figure out which option is best for you.

Credit cards

Credit cards can be helpful for emergency expenses – especially if you can qualify for one with a 0% introductory APR. Paying off your credit card in full by the statement due date can help you avoid interest.

However, if you carry a balance on a credit card, you can accrue interest quickly.

Paycheck advance

For small expenses, consider a paycheck advance. This type of loan lets you borrow from an upcoming paycheck, meaning you’re using money you’ve already earned.

At Chime, MyPay lets you get up to $500 of your pay before payday.^{^} There are no mandatory fees, no interest,^~ and no credit checks. Just open the Chime app, see how much of your pay you’re eligible to take as an advance ahead of payday, and select how much you want.

By following these simple steps, you can easily apply for a personal loan to help pay for a special event, a large expense, or to consolidate your existing debt into one monthly loan payment.

Once approved, learn how to fit debt payments into your monthly budget to repay the loan successfully.