What documents are required for a personal loan?

It will depend on the lender, but you’ll generally need documentation that proves your income and contact information (such as pay stubs and utility bills that prove your address). You’ll also need to provide your Social Security number or Individual Taxpayer Identification Number (ITIN) so that the lender can run a credit check.

When should I get a personal loan?

It depends on your lender. Funding and approval times for personal loans vary, so you should check with your lender to ensure that you apply for the personal loan early enough to get your funds. If you need money ASAP, you’ll need to choose a lender that specializes in quick funding, such as online lenders .

What happens if I get denied a personal loan?

If you’re denied after completing a personal loan application , there is one notable consequence (other than not getting those funds) that you should be aware of: You will have undergone a hard credit inquiry, which can negatively impact your credit score. That’s why it’s important to prequalify to minimize the chances of a denial.

Can I get a personal loan with bad credit?

You may be able to get a personal loan with bad credit if you can find a lender that has more relaxed credit requirements, or allows secured loans or cosigners. However, keep in mind that adverse credit will typically result in less favorable loan terms, so you may end up paying more to borrow.

How To Get Approved for a Personal Loan

Each lender has its own borrower requirements, so you’ll have to do a bit of research to understand your options.

By Devon Delfino

Written by

Devon Delfino

Freelance writer

Devon Delfino is a personal finance writer with over eight years of experience. Her work has been published by U.S. News & World Report, CNN, and The Motley Fool.

Edited by Jared Hughes

Written by

Jared Hughes

Writer, editor

Jared Hughes has over eight years of experience in personal finance. He has provided insight to New York Post and and NewsBreak.

Reviewed by Meredith Mangan

Written by

Meredith Mangan

Senior editor

Meredith Mangan is a senior editor at Credible. She has more than 18 years of experience in finance and is an expert on personal loans.

Updated September 27, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

If you have good credit and a strong income, getting approved for a personal loan may be easy. But you still want to get the lowest rate and best terms possible. If you have fair credit (a FICO score below 670) or bad credit (a FICO score below 580), the approval part can be more challenging, but it's just as essential to get the lowest rate and best terms available to you.

We'll cover what lenders evaluate when deciding your rate and whether to offer you a loan, plus steps to take to lower your rate and improve eligibility. It's important to know that every lender is different and has different qualification criteria. So even if you've been denied a personal loan before, applying with the right lender could turn things around.

Lender

Fixed (APR)

Loan Amounts

Min. Credit Score

4.9

Credible rating

6.94% - 25.29%

$5,000 to $100,000

700

on LightStream’s website

Check Rates

on Credible

View Details

Overview

Lightstream is one of three Credible partner lenders to offer loan amounts up to $100,000, which makes it ideal for financing large expenses like home improvements or weddings. Funds are available as soon as the same day you apply, and you'll have up to 20 years to repay certain types of loans, including home improvement loans, RV loans, and boat loans. There are no origination fees, and rates are low — Lightstream's lowest APR beats SoFi's advertised lowest APR by 1 percentage point. But you'll need good credit to qualify.

Unlike most lenders, Lightstream does not let you prequalify on its site. Nor does it provide a contact phone number next to its customer service hours on its website.

pros

Same-day funding available
High maximum loan amount
No origination fee

cons

Good credit required
No prequalification process
Not available in Vermont

Loan amount

$5,000 to $100,000