How to Apply Online for a Personal Loan

Personal loans are a great solution if you need a lump sum quickly. Whether you want to consolidate debt or make a large purchase, you have many options. Going to the bank isn't a necessity — you can apply from the comfort of your own home. It's relatively simple, but it requires a bit of prep work to apply for a personal loan online.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

1. Make a Plan

Figure out how much money you need to borrow and how repayment fits into your budget. Most lenders require you to make monthly payments. Remember that on top of the money you borrow, you'll also be on the hook for interest charges.

It's important you only borrow what you know you can comfortably pay back. Missing payments can tank your credit score and cause you to rack up expensive late fees.

2. Compare Lenders

Shop around to make sure you're getting the best loan terms possible. When you're doing your research, take note of:

• Interest rates

• Fees (origination, missed payments, etc.)

• Lending caps

• Repayment terms

• The option to prequalify

• Lending restrictions (some lenders don't allow personal funds to be used for expenses like education or cars)

3. Gather Your Personal Information

Every lender will ask you for personal information when you apply for a loan. Before you start filling out applications, make sure you have your proof of income documents (paystubs or W-2s) and your Social Security number.

4. Get Prequalified

Most lenders will only publish the range of interest rates that they offer. In order to find out the rate you qualify for, the lender needs to know your credit history, the amount of money you want to borrow and when you can pay it back.

If you get prequalified or preapproved, you can find out what interest rate you qualify for without your credit score being affected. Unfortunately, not all lenders offer this, so make sure you read the fine print before you authorize any credit checks.

5. Accept the Loan Terms

Once you've finished shopping around and found the best lender, finish your application by accepting the terms. Most online lenders can deposit the funds into your account within a few days of your approving your application.

Photo Credit: vitapix / Getty Images