Personal Loans Requirements to Qualify and Get Guaranteed Approval

• 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.

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

Personal Documents You Need to Take Out a Loan

When you fill out a Personal Loan application form and then go through the verification process, you will be required to provide some basic documents. You don’t need to visit a loan store or do the faxing. In most cases, you can submit the documents electronically.

All Personal Loan requirements are aimed at evaluating your financial situation and determine whether you can pay the money back on time.

It will save you a lot of time and effort if you prepare all the documents for your loan application in advance. Here are the main Personal Loan requirements most direct lenders need:

Loan Application Form Explained

This initial application is usually basic — it will often ask for your basic personal information, desired loan amount and loan purpose.

• Some form of government-issued ID
• Driver’s license
• State-issued ID
• Certificate of citizenship
• SSI debit card
• Passport
• Birth certificate
• Military ID

Proof of Income and Employment Documents

Different forms of income verification can be accepted as proof of income. If you are traditionally employed, you’ll need:

• Pay stubs
• Bank statements
• Tax returns
• W-2s and 1099s
• Employer’s contact information

If you’re self-employed, you can provide the following documents to verify your income:

• Bank statements.
• 1099s.
• Income tax returns.

Keep in mind that some lenders can accept only pay stubs and bank statements to verify your employment.

Proof of address

You’ll need to confirm where you live with the help of the following documents:

• Your ID
• Utility bill
• Voter registration card
• Proof of insurance on your home, lease/rental, or vehicle
• Mortgage statement
• Lease agreement

In case you change your address, it needs to be confirmed. You can use the U.S. Postal Service resources to help you change and confirm a change of residential address.

Credit card report

The application form may also include information about your debt, liabilities and assets. Special attention is paid to the credit rating. You can get a Personal loan at a lower interest rate if your credit rating is strong. Credit card rating is typical as follows:

Sr.	Credit Card Ranking	Credit Card Rating
1	Excellent	720 and higher
2	Good	690-719
3	Fair or average	630-689
4	Bad	300-629

Do you have a bad credit report? Are you a non-U.S. resident and can’t provide a two-year credit history with a valid U.S. credit account? In this case, you can apply for a loan with a bad credit score. To do this, you will need an unconventional credit reference to increase the chances of approval for a Personal loan. Lenders will require the following non-traditional credit references:

• Confirmation of additional source of income and work in the United States for the duration of at least three years
• Payment record of your current rental or mortgage expenses
• Non-payroll-deducted medical bills, life insurance, and car insurance
• Paid utility bills
• School tuition charges
• Add a co-signer in your app (this will add a positive score to your credit request)

Keep in mind that these are the basic Personal Loan documents. Lenders may require additional information or other requirements such as a credit score.

Personal Loan application questions you may be asked

Start your personal loan application prepared to answer every question from a lender:

• What are the reasons you apply for a Personal Loan?

Though you can use a Personal Loan for any needs with no restrictions, you can get approved for different loan amounts and rates. For example, debt consolidation loans, credit builder loans have better chances for guaranteed approval.

• How much do you intend to borrow?

The first question of every personal loan application form is “How much would you like to borrow?”. Typically, online Personal Loans go from $5,000 to $35,000. The better your credit score is and the higher income you have, the more you can get.

• What loan terms are most convenient for you to repay the money?

Before taking out a Personal Loan you must have a clear idea of how long it will take you to repay it. Remember, you’ll need to pay the loan principal together with the interest and fees. Make sure you’ll be able to afford every monthly payment.

• What is your credit score?

Though there’re no minimum credit score requirements for most Personal Loans, it’s an important factor for a lender. Your credit score will help to determine your creditworthiness. The loan amount and interest rates will also depend on your score rating. The better score you have, the less risk a lender takes. As a result, you have more chances to get approved. If you have poor credit, consider applying for bad credit Personal Loans.

How to Prepare for a Personal Loan Application?

Of course, it’s important to prepare all the Personal Loan documents. But there’re some more things to do before applying for a Personal Loan. Find out how to increase your approval chances by following our advice.

• Always take a chance to pre-qualify online.
• Check your credit report regularly and make sure there’re no mistakes.
• Improve your score to get better rates.
• Keep a low debt-to-income ratio to provide a good income.
• Use a free Personal Loan calculator to check your rates.

How to Get $35,000 Personal Loan Fast?

First, you need to investigate different lenders in the United States. It’s easier done online using comparing companies' services such as COMPACOM.com, for example. It works only with the most reliable and verified lenders offering the lowest rates. Compare the best offers and choose the lender that suits your needs and repayment plan.

After you’ve decided where to get the money, you are to submit a formal application for a Personal loan. Use the following three steps to speed up the applying process.

1. Make a list of required documents. Before you start your online application, read the full list of required documents. It will save you time. Also, it will reduce the chances of missing any important information listed on the creditors' website.
2. Scanned copy of all documents. This makes it easier to complete the online application. You need to attach a file of the required document with the online application. This is all done with one click.
3. Start now, finish later. You started applying online and you don't have everything at hand. Not panic. Just use the "save and complete later". This feature is offered in most online application forms.

Now you can easily fill out an application for a loan, if you know what documents you need. Compare the lenders or apply for a $1,000 - $35,000 Personal loan now.

After that, the lender will check your credit score. Perhaps it will lower a few points from your credit account.

Must know!

Lenders before approving you for a loan have the right to do a soft or hard inquiry of your credit history. Some of them stick to a soft or no check, which doesn’t affect your score anyway. A hard credit check can be done only after letting you know about it and may have some influence on your score, but in comparison with other factors (debt, bills, etc) only a slight one.

Finally, when you are eligible for a personal loan, you will receive your funds within 1 -2 business days according to the lender's term.

In addition, Personal loans can help consolidate debt which may improve your credit score and cover unexpected expenses.

Think about it well before taking out a Personal loan. Only after that make the final decision. Find the best lenders that offer low-interest rates. Make sure you only borrow what you need. Be punctual with your repayments!

What to Do If You Don’t Get Approved for a Personal Loan?

If you don't get approved for a personal loan, it can be disappointing, but there are several steps you can take to improve your situation and explore alternative options. Here's what you can do:

1. Understand the reason for rejection

Contact the lender and ask why your loan application was denied. Common reasons include a low credit score, insufficient income, high debt-to-income ratio, or a negative credit history. Understanding the specific reason can help you address the issue.

2. Review your credit report

Obtain a copy of your credit report from a credit bureau and review it carefully for any errors or discrepancies. If you find any inaccuracies, such as incorrect payment information or accounts that don't belong to you, you can dispute them and request corrections.

3. Improve your credit score

If your credit score is low, take steps to improve it over time. This can include paying bills on time, reducing credit card balances, and avoiding new credit applications. It may take some time, but a higher credit score can increase your chances of loan approval in the future.

4. Consider credit counseling

If you're struggling with debt or managing your finances, seek help from a reputable credit counseling agency. They can provide guidance on budgeting, debt management, and improving your financial situation.

Bottom line

If you want to get a Personal Loan fast and stress-free, prepare all the Personal Loan documentation before applying. Get ready to answer the lender’s questions. Pre-qualify online to make sure you meet all the Personal Loan requirements. Choose the best lender and you’ll get a Personal Loan with bad credit and at a lower credit score.