4 Steps to Take Before Getting a Personal Loan

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By: Jessica Leshnoff

Feb 8, 2022

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4 minute read

Summary

Considering a personal loan? Our quick guide will help walk you through the steps you should take before applying for a loan.

In this article:

A personal loan can be a great way to get your finances back on track, make a purchase or even go on a trip.

Getting one starts with the application process. Applying doesn’t need to be stressful. In fact, with some basic preparation, it can be smooth sailing from start to finish.

This guide will walk you through four steps to take before you apply.

1. Do an honest evaluation of your financial situation

As you consider a personal loan, it’s important to determine two things: what you want out of it and how it will impact your finances.

Start by identifying the ultimate goal of getting a loan. Asking yourself questions can help. Are you having difficulty paying existing debts and interested in consolidating your bills? Are you looking to finance a big purchase like a new car?

Once you identify your goal, you can figure out how much you’ll need to borrow and how it factors into your existing budget. Before getting a loan, be sure you’ve also considered other potential options, such as selling unneeded items or tapping into a savings account.

2. Check your credit

To go into the personal loan application process with less stress, it helps to know what your credit looks like ahead of time. That means checking both your credit score and credit report. (Luckily there’s plenty of ways to check your credit for free, with no impact to your score.)

Since the majority of lenders check your credit score and history when you apply for a loan, you’ll have an opportunity to take a look beforehand to make sure it’s correct and avoid surprises. You’ll also have a chance to address any mistakes on your report.

While the lowest rates are typically offered to people with the highest credit scores, some lenders will take into consideration other factors to help you find a loan solution.

Loan offers from $1,500 to $20,000

See offers, apply online and get a response in minutes

Check for offers Checking for offers won’t affect your credit score.

3. Research different lending options

When it comes to getting a personal loan, a little research can go a long way, so take time to investigate different lenders and the various types of loans they offer.

There are two main types of personal loans: secured and unsecured. The one that’s right for you will be based on your financial situation as well as your credit score.

For borrowers with less-than-perfect credit, another option may be getting a loan with a cosigner. A cosigner is someone who is legally obligated to repay the loan if the primary borrower does not.

Ultimately, determining what lender has the best personal loans comes down to what you need and what each lender can offer. To avoid scams, explore online reviews on trustworthy sites like Trustpilot and look up each lender on the Better Business Bureau to check ratings and read customer reviews.

4. Gather your documents

Now that you’ve completed the first three steps, you’re ready to start the application process. Gathering your documents ahead of time will make it go faster.

The list of documents you need to provide when applying for a loan may vary by lender. OneMain Financial’s required documents are:

  • Proof of Identity: an official government-issued ID (e.g. passport, driver’s license)
  • Proof of Residence: confirmation of your address (e.g. a driver’s license with your current address, a utility bill or a signed lease)
  • Proof of Income — evidence of income (e.g. paystubs or tax returns)

If you apply for a secured loan, you’ll need to provide documents that prove you own the item you’re using as collateral.

When applying with a cosigner, your cosigner will likely have to provide some or all of these documents as well.

You’re ready to take the next step.

Getting a personal loan doesn’t have to feel overwhelming. Lenders such as OneMain Financial break down both the personal loan process and loan requirements for a smooth, surprise-free experience. With some basic research and preparation, you’ll be well-equipped to not only find the right lender, but apply quickly and painlessly.


This article has been updated from a previous posting on January 14, 2021. Kia Jackson contributed.

This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.

Frequently asked questions

Here are a few things that affect your eligibility

  • Financial history Credit history
  • Income and expenses
  • Loan purpose
  • Whether you have filed for bankruptcy
  • State of residence

Before you close your loan, OneMain will need the following documents from you:

  • A copy of a valid, government-issued ID (driver’s license or passport)
  • Your Social Security card
  • Proof of residence (driver’s license with current address, utility bill, or signed lease)
  • Proof of income (pay stubs or tax returns)

We may ask for more info based on your unique situation. Take the next step and start your loan application today

  • From the start of the application to receiving the funds could be as quick as one day.*
  • Completing the online loan application: Takes just minutes to complete and see your offers*
  • Signing your loan documents: After final loan approval, signing your closing documents takes about 30-45 minutes.
  • Receiving your funds: When using your debit card to receive funds, you can get your money as soon as an hour after signing the loan docs.1 Funds can also be paid out by direct deposit (ACH), which are available approximately 1-2 banking days after loan closing. A check can be issued as soon as the same day as the closing.

*Timing may vary based on: when you submit your application, how many documents are needed for approval, and how long it takes for OneMain to receive, review, and verify those documents, and whether your loan is secured by collateral, among other factors.

Are you still wondering "Is a personal loan right for me?" Don't worry – we're here to help. Just call (800) 961-5577 or find a branch near you.

If you're approved for a loan, you may see secured or unsecured next to your offer. A secured loan requires that you provide collateral, like a vehicle. An unsecured loan doesn't require any collateral from you.

Keep in mind that there are eligibility requirements such as the condition and age of your motor vehicle and proof of insurance. Also, if a borrower defaults on a secured loan, the lender has the right to take the collateral.