We receive advertising fees from the brands we review that affect the ranking and scoring of such brands.
Advertiser Disclosure

Personal Loans Guide: How to Get a Personal Loan in 6 Steps

A personal loan can be a suitable solution if you need extra cash. However, getting a personal loan can be overwhelming, especially if you're a beginner. To help simplify the process, here's a guide on how to get a personal loan in 6 easy steps.

How to Get a Personal Loan in 6 Easy Steps

1. Determine Your Loan Need with a Financial Goal in Mind

The first step in getting a personal loan is to determine why you need the loan It would help if you also determined how much you need. A clear understanding of your financial goals will help you make an informed decision when choosing a loan. Consider the purpose of the loan, the amount you need, and how you plan to use the money. This will help you determine what type of loan you need and how much you can repay.

2. Check Your Credit Score and History Before you apply for a personal loan

it's important to check your credit score and history. Your credit score and history are crucial to determining loan approval and an interest rate. You can get a free credit report from the major credit bureaus to review your credit history and ensure everything is accurate. If you have any errors or discrepancies, dispute them before applying for a loan.

3. Compare Personal Loan Options with Different Lenders

Once you've determined your loan needs and checked your credit score, it's time to compare personal loan options. Research different lenders and compare interest rates, fees, and repayment terms. Look for lenders that offer the best terms and interest rates that fit your budget. Consider the lender's reputation, customer service, and loan application process to make an informed decision.

4. Calculate Your Loan Payments Before you submit your loan application

This will help you determine your monthly payment and overall loan cost. Use a calculator to determine the loan's monthly payment and total cost. Make sure the monthly payment fits your budget and that you can afford the loan.

Loan amount

$

Term in months

ui_calender

Interest rate per year

%

$853.79

Monthly payment


$10,245.42

Total paid

$245.42

Interest paid

5. Submit a Loan Application and the Required Documentation

Once you've found a lender that fits your needs, it's time to submit a loan application. The loan application process may include providing personal information, proof of income, and other required documentation. Make sure you have all the required documents ready before starting the application process to avoid delays.

6. Receive Loan Approval and Negotiate Terms

After you've submitted your loan application, it's time to wait for the approval. This process may take several days or weeks, so be patient. Once you receive loan approval, you may need to negotiate the terms and conditions of the loan. If you have questions or concerns, discuss them with the lender before signing the loan agreement.

Compare Top Personal Loan Lenders

Credible
  • Fixed APR: 5.20-35.99%
  • Loan Term: 12-84 months
Get Rate
sofi logo
SoFi
  • APR: 8.99-25.81%
  • Loan Term: 24-84 months
Get Rate
5kfunds_l
5K Funds
  • APR: 5.99-35.99%
  • Loan Term: 2-72 months
Get Rate

Conclusion:

A personal loan can be a great solution for those needing extra cash. By following these 6 easy steps, you can simplify the process and get the loan you need. Remember to determine your financial needs, check your credit score and history, compare loan options, calculate your loan payments, submit a loan application, and receive loan approval. With the right lender and a bit of preparation, you can get a personal loan that meets your needs and helps you achieve your financial goals.