What Are the Requirements to Get a Personal Loan?
Summary
Personal loan requirements vary by lender, but we’ve gathered some top things to keep in mind before applying. Learn what you need to apply for a personal loan, including your credit history and income info, and tips that may help increase your approval odds.
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Whether you need money to repair your car, pay for a family vacation or consolidate debt, a personal loan could be a helpful option for purchases big and small. But before you qualify for a personal loan, you need to understand the requirements that could affect your eligibility. Understanding any requirements beforehand helps you prepare a stronger application, may increase your chances of approval, and may even help you lock in better loan terms.
Each lender's requirements will vary, and you should talk to them directly about your personal situation, but many factors that determine your eligibility are often similar. Here are some standard personal loan eligibility requirements and suggestions that could help you increase your chances of qualifying.
How do you qualify, and what do you need to apply for a personal loan?
Credit history
Many lenders use your credit score and history to determine how likely you are to repay the loan. If you're applying for a OneMain personal loan, we work with applicants with a wide range of credit scores and look at your overall financial picture, not just your credit score, to help find a loan that’s right for you.
Lenders may look at credit history factors like your pattern of on-time payments, the number and timing of new credit inquiries, your credit usage, and more. A strong credit history could give you access to better loan terms, like a lower interest rate and/or a higher loan amount.1 Check your credit report before applying for a loan to know where you stand. Many banks, credit unions and lenders use VantageScore® or FICO® to check your creditworthiness. If you’re a OneMain customer, you can see free monthly VantageScore® credit score updates in your OneMain app.
Income
Some lenders want to make sure you will be able to repay the loan, so you’ll need to show that you have a source of income, whether it’s from a job or pension. You can choose to disclose any income you receive from alimony, child support or separate maintainence income, but it’s not mandatory. You'll likely need to provide proof of your income, including:
- Pay stubs
- Tax returns
- Bank statements
- W-2s or 1099s
Debt-to-income ratio (DTI)
Your debt-to-income ratio is another important factor that most lenders consider when reviewing your loan application. Your DTI is a percentage that shows how much of your monthly income is used to pay off debts. Lenders use DTI to assess your ability to repay a loan and/or the risk associated with extending a loan to you. Having a lower DTI is typically best, because it shows the lender you have enough income to cover new debt, like a personal loan. Ideally, your DTI should be below 36%,2 but each lender has their own criteria for calculating acceptable DTI ratios.
Other personal loan requirements to consider
Depending on the lender, you may also need to provide the following documents:
- Proof of identity (driver’s license, state-issued ID card, passport or available third-party verification service)
- Proof of residence (driver’s license with current address, utility bill or signed lease)
A loan specialist at OneMain may ask for additional information, such as the purpose of the loan, since certain loan uses are restricted. If you’re applying for a secured loan, you’ll also need to provide details about the collateral you plan to use. A secured loan is backed by collateral — such as a car — which helps ensure the lender can recover part of the loan balance if you fall behind on payments. You may also need to provide some extra documents like your proof of insurance.
Boost your chances of approval
Understanding what it takes to get a personal loan could help you get closer to receiving the money you need to meet your financial goals. Whether you're covering an emergency expense, tackling a home improvement project or catching up on bills, knowing what lenders look for in an application could boost your chances of getting approved and enjoying a faster, smoother process.
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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.
