Credible takeaways
- Loan pre-approval and prequalification are effectively the same process for personal loans.
- Pre-approval gives you an estimate of the loan rate and terms you might qualify for.
- Prequalification does not hurt your credit score since the lender performs a soft credit pull.
- Depending on the lender or marketplace, prequalification can take less than 5 minutes and may not require your Social Security number.
Are you thinking about getting a personal loan? Today, most lenders have pre-approval systems in place. As a result, you don’t have to sacrifice hard-earned credit score points to get a sense of your loan options beforehand.
When you prequalify, your credit score won’t be impacted. However, prequalification is not an offer of credit, and your final rate could be different.
Current personal loan rates
Advertiser DisclosureOverview
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
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Best Egg is a solid lender for a wide range of borrowers. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Plus, Best Egg is one of a handful of Credible partner lenders to offer secured loans, and the only one we know of that offers loans secured by the fixtures in your home. This can be a great way for homeowners to lower their rate, while not putting their actual home up as collateral.
pros
- Secured loans available
- Low minimum income requirement
- Wide range of loan purposes allowed
- Funds in 1-3 business days
cons
- Origination fees
- No discounts
- Not available in DC, IA, VT, or WV
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Upstart has low APRs and same-day funding, making it a good choice for well-qualified borrowers who need money fast. It also offers loans as low as $1,000, which makes it a good choice if you need a small loan. Plus, it's one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), so applicants with bad credit or no credit history might be more likely to get approved for a loan with Upstart. Just know that Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
- May fund in 1 business day
- No minimum credit score requirement on lender site
- Low minimum APR
- Trustpilot score of 4.9/5 stars
cons
- May charge a high origination fee
- No discounts offered
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
pros
- Mobile app
- Low minimum income requirement
- High close rate on loans made through Credible
- Available in all states
cons
- Origination fee
- No discounts
- Funding not as fast as some competitors
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Overview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
pros
- Excellent customer reviews on Trustpilot
- Funding as soon as the next business day
- Large loan amounts available
cons
- Possible origination fee up to 7.49% (through Credible)
- Other lenders may have lower starting APRs
- No cosigner option
Loan amount
$5,000 - $100,000 (up to $50,000 on Credible)
Eligibility
Available in all states. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchases, paying bills or rent
Overview
Reach is an option if you have fair credit, especially if you need money fast. According to the company, 90% of Reach personal loans are funded within one day of approval.
It's a good choice for debt consolidation and credit card refinancing, but borrowers with excellent credit may not find the lowest rates with Reach. The company also charges more fees than some of its competitors and doesn't offer direct pay or autopay discounts. If you need a 7-year term loan, you'll need to look elsewhere. Reach personal loans are not available in all states.
pros
- Fast funding
- Can improve credit
- Fair-credit borrowers may be eligible
cons
- Limited use
- No direct pay discount
- Origination fee
- Limited availability: Not available in CO, CT, ME, NV, NH, TN, VT, WV, or WY
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation and credit card refinancing only
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
pros
- Mobile app
- Live chat
- Low maximum APR
cons
- Limited loan terms available
- No discounts
- Origination fees
- Not available in IA, MA or NV
Eligibility
Available in all states except IA, MA and NV
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Overview
SoFi personal loans feature high loan amounts, competitive interest rates, same-day funding, and long loan terms, plus discounts for autopay and direct pay. Plus, SoFi offers live chat, a prequalification process that doesn't require your Social Security number, and free financial advice for customers. Unlike many other online lenders, SoFi is an FDIC-insured bank.
To qualify for an unsecured loan you may need to have good credit, but unlike other lenders, SoFi doesn't specify a credit score minimum. Minimum loan amounts start at $5,000.
pros
- Large loan amounts available
- Autopay and direct pay discounts
- Same day funding
- Long loan terms available
cons
- Not transparent about minimum credit score requirements
- 5,000 minimum loan amount
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
BHG Financial stands out for offering the largest loan amounts — up to $250,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval.
pros
- Eligible applicants can borrow up to $250,000
- Considers borrowers with fair credit
- Long repayment terms
cons
- Not available in AL, HI, ID, IL, LA, ME, MT, NV, ND, and VT
- No discounts
- Minimum annual income requirement of $100,000
- Funding takes at least five days
Fees
Origination fees, late fees, other fees may apply
Eligibility
Available in all states except AL, HI, ID, IL, LA, ME, MT, NV, ND, and VT
Loan uses
Debt consolidation, credit card refinancing
Overview
Universal Credit offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with low credit scores considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
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
Repayment terms
2 - 20 years, depending on loan purpose
Eligibility
Available in all states except VT
Time to get funds
As soon as the same business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Best Egg is a solid lender for a wide range of borrowers. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Plus, Best Egg is one of a handful of Credible partner lenders to offer secured loans, and the only one we know of that offers loans secured by the fixtures in your home. This can be a great way for homeowners to lower their rate, while not putting their actual home up as collateral.
pros
- Secured loans available
- Low minimum income requirement
- Wide range of loan purposes allowed
- Funds in 1-3 business days
cons
- Origination fees
- No discounts
- Not available in DC, IA, VT, or WV
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Eligibility
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Overview
Upstart has low APRs and same-day funding, making it a good choice for well-qualified borrowers who need money fast. It also offers loans as low as $1,000, which makes it a good choice if you need a small loan. Plus, it's one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), so applicants with bad credit or no credit history might be more likely to get approved for a loan with Upstart. Just know that Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
- May fund in 1 business day
- No minimum credit score requirement on lender site
- Low minimum APR
- Trustpilot score of 4.9/5 stars
cons
- May charge a high origination fee
- No discounts offered
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
pros
- Mobile app
- Low minimum income requirement
- High close rate on loans made through Credible
- Available in all states
cons
- Origination fee
- No discounts
- Funding not as fast as some competitors
Eligibility
Available in all 50 states
Loan uses
Debt consolidation, paying off credit cards
Overview
It’s worth considering a personal loan through Splash if you have good credit (ideally, a FICO score above 700). The platform offers loans from a wide range of lenders, and next-day funding is available. Plus, Splash has a live chat feature so you can get real-time answers without having to wait on hold or for an email. Loans are available up to $100,000 if you apply via Splash’s website.
Rates are competitive, but borrowers with excellent credit may find lower APRs elsewhere. If you need a repayment term longer than five years, you’ll need to look elsewhere as well.
pros
- Excellent customer reviews on Trustpilot
- Funding as soon as the next business day
- Large loan amounts available
cons
- Possible origination fee up to 7.49% (through Credible)
- Other lenders may have lower starting APRs
- No cosigner option
Loan amount
$5,000 - $100,000 (up to $50,000 on Credible)
Eligibility
Available in all states. OH and NM net disbursed amount must be greater than $5,000. MA must be greater than $6,000
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchases, paying bills or rent
Overview
Reach is an option if you have fair credit, especially if you need money fast. According to the company, 90% of Reach personal loans are funded within one day of approval.
It's a good choice for debt consolidation and credit card refinancing, but borrowers with excellent credit may not find the lowest rates with Reach. The company also charges more fees than some of its competitors and doesn't offer direct pay or autopay discounts. If you need a 7-year term loan, you'll need to look elsewhere. Reach personal loans are not available in all states.
pros
- Fast funding
- Can improve credit
- Fair-credit borrowers may be eligible
cons
- Limited use
- No direct pay discount
- Origination fee
- Limited availability: Not available in CO, CT, ME, NV, NH, TN, VT, WV, or WY
Fees
Origination Fee, $15 Late Fee, $25 NSF Fee
Eligibility
Available in all states except CO, CT, ME, NV, NH, TN, VT, WV, and all U.S. Territories
Time to get funds
Funds typically deposited into your account in 1 business day13
Loan uses
Debt consolidation and credit card refinancing only
Overview
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
- Fair credit borrowers eligible
- Autopay and direct pay discounts
- Can fund in as little as 1 business day
- Mobile app
- Secured loans available
cons
- High maximum origination fee
- Cosigners not accepted on home improvement loans
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Overview
Happy Money has been in operation since 2009 (formerly known as Payoff). It's an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but that's not as high as some other lenders' origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans aren't available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
pros
- Mobile app
- Live chat
- Low maximum APR
cons
- Limited loan terms available
- No discounts
- Origination fees
- Not available in IA, MA or NV
Eligibility
Available in all states except IA, MA and NV
Time to get funds
As soon as 2 - 5 business days after verification
Loan uses
Debt consolidation and credit card consolidation only
Overview
SoFi personal loans feature high loan amounts, competitive interest rates, same-day funding, and long loan terms, plus discounts for autopay and direct pay. Plus, SoFi offers live chat, a prequalification process that doesn't require your Social Security number, and free financial advice for customers. Unlike many other online lenders, SoFi is an FDIC-insured bank.
To qualify for an unsecured loan you may need to have good credit, but unlike other lenders, SoFi doesn't specify a credit score minimum. Minimum loan amounts start at $5,000.
pros
- Large loan amounts available
- Autopay and direct pay discounts
- Same day funding
- Long loan terms available
cons
- Not transparent about minimum credit score requirements
- 5,000 minimum loan amount
Fees
Option to pay an origination fee in exchange for a lower rate
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Loan uses
Solely for personal, family, or household uses
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
BHG Financial stands out for offering the largest loan amounts — up to $250,000 — of any Credible partner lenders. Simply put, if you need an unsecured personal loan over $100,000, there are very few places to look, but BHG is one. You'll have up to 10 years to repay the loan, but you'll need an annual income of at least $100,000 to qualify and a FICO score that's 660 or higher.
Loan amounts start at $20,000, so look elsewhere for small loans. And BHG charges a modest origination fee between 3% and 4%, depending on your financial profile. Loan funds are available within five to 14 days of loan approval.
pros
- Eligible applicants can borrow up to $250,000
- Considers borrowers with fair credit
- Long repayment terms
cons
- Not available in AL, HI, ID, IL, LA, ME, MT, NV, ND, and VT
- No discounts
- Minimum annual income requirement of $100,000
- Funding takes at least five days
Fees
Origination fees, late fees, other fees may apply
Eligibility
Available in all states except AL, HI, ID, IL, LA, ME, MT, NV, ND, and VT
Loan uses
Debt consolidation, credit card refinancing
Overview
Universal Credit offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with low credit scores considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
What is personal loan pre-approval?
A personal loan pre-approval, commonly known as prequalification, refers to the process where a lender collects information from a borrower to determine if they’re likely to qualify for a loan or not. During the process, lenders commonly request your:
- Desired loan amount
- Loan purpose
- Name
- Home address
- Employment situation and annual income
- Birthdate
- Monthly housing payment amount
- Social Security number
- Phone number
Once you submit a prequalification request, the lender analyzes your information to determine if you prequalify. If you do, it’ll show the loan amounts, annual percentage rates (APRs), and terms you can likely get.
The quote you receive is not a guaranteed loan offer; it’s only an estimate based on the information you provided. An official loan offer will hinge on a formal application and a hard credit check, which may lower your credit score temporarily.
How to prequalify for a personal loan
While the personal loan prequalification process can vary from one lender to the next, here are the common steps you can expect:
- Review your credit: Before you apply, check your credit reports to ensure that all of the information is accurate and up to date. If you find a mistake, file a dispute with the credit bureau to get it resolved. Visit AnnualCreditReport.com for a free credit report.
- Fill out the prequalification questionnaire: Most lenders have short prequalification forms on their websites. You’ll need to fill them out and provide your basic personal information. Your Social Security number may or may not be required, depending on the lender. You could also use a personal loan marketplace to prequalify with multiple lenders at once.
- Allow a soft credit check: Next, you’ll need to agree to a soft credit check. After you complete the prequalification application, the lender will review your information to determine if you prequalify. You’ll usually get an answer within a minute or so.
- Review your loan quote: If you prequalify, you’ll receive a quote that includes the loan amounts, APRs, fees, and loan terms for which you may qualify.
While the prequalification process is common with personal loan lenders, not all offer it. In some cases, a lender may require you to complete a full application and permit a hard credit check right away.
How prequalification impacts your credit score
Lenders typically process a soft credit inquiry during the loan prequalification process, which doesn’t impact your credit score. If you check your credit reports, you’ll be able to see all of your soft inquiries, but lenders and other third parties can’t.
Soft credit inquiries are not considered official requests for credit, so they don’t increase the risk you present as a borrower in lenders’ eyes. However, if you decide to move ahead with a loan application, most lenders will conduct a hard credit inquiry. Hard inquiries stay on your record for up to two years and cause your credit score to drop by up to 10 points.
Learn More: Does Applying for a Personal Loan Hurt Your Credit?
What to do after you prequalify
After you prequalify for a personal loan, you’ll be given important information — the estimated rates and terms you could get. To figure out if a loan prequalification quote is competitive, compare it against a few other options.
Tip
You can use a personal loan marketplace, like Credible, to quickly find out if you prequalify with a network of personal loan lenders.
Once you have a few quotes, review the following factors to find the best fit for your situation:
- Loan amounts: Check how much each lender is considering offering you and look for the amount that best covers your needs. Most personal loans range from $1,000 to $100,000 (or more, in some cases).
- APRs: The lower a loan's APR, the less in interest you’ll pay over the life of the loan. The APR is based on the loan's interest rate as well as any upfront fees (like origination fees or administrative fees).
- Terms: The term is the amount of time you’ll have to repay the loan amount. It also impacts your monthly payment amount. Look for a term length that best suits your needs. Most lenders offer terms between 1 and 7 years.
- Fees: Fees can vary between lenders. Take note of any origination fees, application fees, and late fees lenders charge.
- Monthly payment amounts: Compare the monthly payments to see which best fits into your budget.
- Reviews: Check reviews from past borrowers to get an idea of how satisfied they are with a lender’s overall service. Visit Trustpilot or the Better Business Bureau.
- Funding times: Check the funding time each lender offers to find out how quickly you can receive the funds. Most lenders can fund your loan as soon as the same or next business day after approval.
Compare lenders based on all of these factors to figure out which one is the best overall fit for your situation.
Interest rates and loan amounts by credit score
Understanding what factors affect loan decisions can help you even before pre-approval.
If you’re curious how likely you are to qualify for a personal loan, what rate you might get, or how much money you might be approved to borrow, take a look at the charts below, which are based on Credible user data between April 2024 and March 2025.
In the first chart, we see that borrowers with high credit scores are likely to qualify for the lowest interest rates and highest loan amounts. So if you have poor or fair credit but need a larger loan amount, consider taking action to raise your credit score by lowering your debt-to-income ratio (DTI) and making on-time payments.
Personal loan interest rates by credit score
Based on Credible prequalified and closed loans data between April 2024 and March 2025. Source: Credible
But many people who apply for personal loans don’t have excellent credit. In the second chart, we see that average FICO scores, regardless of income, tend to be in the middle of the good credit score range. And income can serve as a compensating factor to help you get a lower rate or qualify for a larger loan.
Personal loan interest rates by income
Based on Credible closed loans data between April 2024 and March 2025. Source: Credible
What to know about APR
The Truth in Lending Act of 1968 requires all lenders to communicate the costs of loans and credit using APRs so that consumers can more easily compare offers and understand which are the cheapest. So, as you prequalify, compare the APRs between multiple loans and lenders, and look for the lowest.
The APR is a percentage that communicates the yearly cost of borrowing in relation to the total amount being borrowed, which includes the interest rate and any upfront fees (like origination and administrative fees).
You shouldn't find yourself needing to calculate it, which is a good thing, since calculating the APR can be difficult unless you have a financial calculator (and know how to use it) or an APR calculator.
You can also use an APR calculator or a personal loan calculator like the one below to see how much interest you'll pay over the life of the loan.
Some loan calculators will even show you the amortization schedule or payment schedule to see how much interest and principal you’ll pay per month. (As you make monthly payments, the interest portion of your payment decreases, and the principal portion increases.)
How to prequalify with bad credit
If you have bad credit, you may still be able to prequalify for a personal loan through the following methods.
Find lenders that approve bad credit borrowers
Every lender serves a certain segment of the market and sets its underwriting requirements accordingly. LightStream, for example, caters exclusively to borrowers with good to excellent credit profiles, while Upstart allows applicants with credit scores as low as 300 through its website.
To prequalify for a loan despite bad credit, you’ll need to find lenders that approve borrowers with your credit score and financial profile. You can do so by researching their eligibility requirements individually, or by using a personal loan marketplace that runs your prequalification application through a network of lenders.
Related: What Credit Score Is Required for a Personal Loan?
Enlist the help of a cosigner
Another option is to apply with a cosigner. A cosigner is a person who agrees to pay for a loan if the primary borrower can’t or won’t. If you can find someone with good credit who is willing to cosign for you, their guarantee can help you to get approved.
Keep in mind that the loan will impact their credit and financial situation if you default. To preserve the relationship, ensure you can afford the payments and let them know immediately if you foresee missing a payment.
Compare: Co-applicant vs. Cosigner
Explore secured personal loans
Secured personal loans are backed by a piece of collateral, such as a car or bank account. If you’re having trouble getting approved, look into lenders that allow borrowers to pledge collateral.
Doing so can help to strengthen your application and improve your odds of getting approved. However, beware that if you default, the lender will have the rights to seize and sell the asset you pledge.
Compare: Secured vs. Unsecured Personal Loans
Work on building your credit
If you can’t get prequalified for a suitable personal loan now, consider spending some time working on your credit. The main ways to improve it are making on-time payments over time, paying down revolving credit lines, and ensuring you have a mix of open revolving and installment credit accounts.
You can also look into getting a credit-builder loan, which is designed for borrowers with little to no credit history, to help improve your credit score.
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Meet the expert:
Jessica Walrack
Jessica Walrack is an experienced freelance writer who has spent more than 11 years in personal finance, with expertise on loans, insurance, banking, mortgages, credit cards, budgeting, and taxes. Her work has been published by CNN, CBS MoneyWatch, U.S. News & World Report, and USA Today.
