4 Steps to Take Before Getting a Personal Loan

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

Some lenders, like OneMain Financial, give you a stress-free way to check for offers. Answer a few questions, and in minutes you'll have an idea of different loan options you may prequalify for. Get started here.
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.