Personal loan requirements: what lenders check
Most lenders look at five things: your credit score and history, income, debt-to-income ratio, employment, and identity and residency. Each lender sets its own requirements, so prequalifying with several lenders at once is the fastest way to see who will work with you, with no effect on your credit score.
- Encrypted and secure
- No credit impact
- No personal info to CLO
- Free, no obligation
Loan terms from 2 to 60 months. Rates vary depending on the lender, your credit and your state. Maximum APR is 35.99%.
What do lenders check for a personal loan?
- Credit score and history: your score, payment history, how much of your credit you use, and any recent delinquencies.
- Income: steady income from a job, self-employment, retirement or benefits that you can document.
- Debt-to-income ratio (DTI): your monthly debt payments divided by your gross monthly income. Lower is better, and each lender sets its own limit.
- Employment: many lenders ask about your employer and how long you've had your income source.
- Identity and residency: you must be of legal age in your state, live in the U.S., and verify your identity. Most lenders also require a bank account for funding.
What documents do you need?
- A government-issued photo ID.
- Proof of income, such as recent pay stubs, tax returns or benefit statements.
- Recent bank statements.
- Proof of address, such as a utility bill or lease.
- For debt consolidation, the account details for the debts you want to pay off.
How can you improve your chances of approval?
- Check your credit reports for errors at AnnualCreditReport.com and dispute anything wrong.
- Pay down credit card balances to lower your credit utilization.
- Borrow only what you need. A smaller loan is easier to approve and cheaper to repay.
- Ask whether the lender allows a co-applicant if your credit or income is thin.
- Compare several lenders, because approval criteria differ from one lender to the next.
See what to expect for your credit range: excellent, good, fair or bad credit.
See which lenders will work with you
Pre-qualify in minutes. Checking your rate won't affect your credit score.
Common questions
What is the minimum credit score for a personal loan?
There's no single minimum. Each lender sets its own, and some lenders work with fair or bad credit. Prequalifying shows which lenders will work with you without affecting your credit score.
How much income do I need for a personal loan?
There's no universal minimum. Lenders check whether your income covers the new payment along with your existing debts, which is why your debt-to-income ratio matters as much as your income.
Can I get a personal loan without a job?
Possibly, if you have other steady income you can document, such as retirement, disability benefits or self-employment income. Requirements vary by lender.
Do I need documents to prequalify?
Usually not. Prequalifying uses the details you enter and a soft credit pull. Lenders ask for documents after you choose an offer and continue with them.
Sources
- Free credit reports, AnnualCreditReport.com
Ready to compare offers?
Pre-qualify in minutes. Checking your rate won't affect your credit score.