• You can use Personal loans for any needs such as debt consolidation, medical bills, holidays, home repair, end many more.
  • You don’t risk losing any collateral as most personal loans are unsecured.
  • To get a Personal Loan, you only need to prove your creditworthiness and pay the money back over a set term of 2 – 5 years.

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What are common personal loan requirements?

If we speak about unsecured Personal Loans, they will have more strict requirements and will be more difficult to qualify for. As you don’t provide any collateral to secure a loan, interest rates may be higher than other types of loans.

Most direct lenders set out easier Personal Loan requirements to ensure you qualify for the loan:

  • U.S. residence, a valid Social Security number or a long-term visa. If you are not a US citizen, you can consider getting a Personal Loan with a cosigner.
  • Living in a state where your Personal Loan lender is legitimate to operate. Pay attention to loan amounts, terms and interest rates allowed in the area of jurisdiction.
  • Minimum 18 years of age is required to get approved for a personal loan.
  • There may be minimum credit score requirements, but you can always find a lender offering Personal Loans for bad credit.
  • Government-issued ID in any acceptable form such as a passport, driver’s license or Social Security card.
  • A permanent address.
  • Proof of income. It can be not only pay stubs but also tax returns, bank statements, a signed letter from your employer.
  • All the requested Personal Loan documentation.
  • An adequate reason for getting a Persona Loan. For example, you will have high approval chances if you need a debt consolidation Personal Loan, Credit Builder Personal Loan. On the contrary, you’ll hardly qualify for the loan to pay for educational expenses, illegal activities, commercial purposes, etc.

Don’t forget, these are just the basic Personal loan requirements. Keep in mind, that Personal Loan eligibility may vary by lender. Besides, you’ll be required to provide certain documents to get approved for the necessary amount. The wisest advice would be to prequalify for a Personal Loan online, check if you meet the lending requirements, and prepare the documents. It will ensure you apply for a Personal Loan fast with no stress and hassle.

How do Personal Loan lenders evaluate applicants?

Here are 5 main Personal Loan eligibility criteria lending institutions pay attention to before offering you the money:

  1. Typically, a minimum of 600 Credit Score and positive credit history is required.
  2. Regular Income of any type will prove that you have enough means to repay the loan.
  3. Low debt-to-income ratio – ideally less than 36%, or 50% at least.
  4. Some type of collateral if you apply for a secured Personal Loan.
  5. Additional application or origination fee of 1% - 8% of the loan amount.

How Personal Loan requirements will help you qualify for a loan

When you know what to expect and what you will be required to get a Personal Loan in advance, the process becomes faster and easier. You only need to follow a few simple steps to apply for the financing:

  • Check your credit report regularly
  • Plan your financial needs and expenses
  • Compare the lenders and choose the most affordable offer
  • Prequalify online
  • Submit a loan application form
  • Prepare documentation
  • Get instant approval