The Complete Guide to Applying for a Personal Loan Online
To apply for a personal loan online, you check your credit score, compare lenders, get preapproved with a soft credit pull, pick a loan offer, submit a full application with your ID, income and address details, then accept the funds once you are approved.
Most online lenders can give you a decision in minutes and send money to your bank account in one to seven business days. You need to be at least 18, be a U.S. citizen or permanent resident, and have a steady income and a valid bank account to qualify.
Going to the bank isn't necessary — you can apply from the comfort of your home. It's relatively simple, but it requires a bit of prep work to safely apply for a loan online.
Personal Loans at a Glance
Typical APR range: 6% to 36%
Loan amount range: $1,000 to $100,000
Funding time: One to seven business days
Term length: 12 to 84 months
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.
Key Takeaways
How do you apply for a personal loan online? Six steps: Check your credit, compare lenders, get preapproved, pick an offer, submit the full application and accept the funds.
Prequalifying uses a soft pull and won't hurt your score: You see estimated rates before a hard inquiry hits at full application.
Funding is fast: Online lenders often deposit money within one to five business days; banks and credit unions may take three to seven.
Baseline requirements are consistent: You generally need to be at least 18, a U.S. citizen or permanent resident with an SSN or ITIN, and have steady income and a bank account.
Credit and DTI drive your rate: A score of 670 or higher earns better rates, and most lenders want debt payments under 36% of monthly income.
Compare at least three lenders: The CFPB notes shopping around can lower your loan's total cost.
Summary generated by AI, verified by MoneyLion editors
Personal Loan Eligibility Requirements
Most online lenders share a similar set of baseline requirements. According to the Consumer Financial Protection Bureau (CFPB), lenders look at your credit history, income and existing debt to decide if you qualify and what rate you get.
You typically need to meet these personal loan requirements before you apply.
Minimum age: You must be at least 18 years old in most states.
Residency: You must be a U.S. citizen or a permanent resident with a valid Social Security number or Individual Taxpayer Identification Number (ITIN).
Minimum income: Most lenders look for steady income of at least $20,000 to $25,000 per year, though some go lower.
Credit score: A score of 580 to 669 may qualify you for some loans, while a score of 670 or higher may qualify you for better rates.
Debt-to-income ratio: Most lenders want your monthly debt payments to be less than 36% of your monthly income.
Bank account: You need an active checking account for funding and autopay.
Is a Personal Loan Right for You?
A personal loan works best when you need a lump sum for a planned expense, and you want a fixed monthly payment. Common reasons to apply include debt consolidation, home repairs, medical bills or a large one-time purchase. If you only need a small amount for a few weeks, a cash advance or credit card may cost less than a loan.
Learn More: How To Apply for a Short-Term Loan
How To Apply for a Personal Loan Online in 6 Steps
Check your credit score: You can check your score for free, so that you know what rates and loan amounts you are likely to qualify for.
Compare lenders: Look at annual percentage rates (APRs), fees, loan amounts and repayment terms from at least three lenders so you can pick the best fit.
Get preapproved: Fill out a short prequalification form that uses a soft credit check to show your estimated rate without hurting your credit score.
Pick your loan offer: Choose the loan term length and amount that match your budget and the reason you are borrowing.
Submit the full application: Send in your ID, proof of income, address and employment details so the lender can run a hard credit check and finish underwriting.
Accept the funds: Sign the loan agreement and the lender will deposit the money into your checking account, often within one to seven business days.
Learn More: How To Get a $1,000 Loan Online
How Long Does It Take To Get a Personal Loan?
After approval, most online lenders send funds to your bank account within one to seven business days. Some lenders offer same-day or next-day funding if you apply early and get approved before their daily cutoff. Banks and credit unions can take a bit longer, often three to seven business days, because their personal loan approval process may include in-person steps.
Compare Personal Loan Lender Types
Lender type | Typical loan amounts | Typical APR range | Funding speed |
|---|---|---|---|
Banks | $1,000 to $50,000 | 6.99% to 24.99% | 3 to 7 business days |
Online lenders | $1,000 to $100,000 | 6% to 36% | 1 to 5 business days; some offer same-day or next-day funding |
Credit unions | $500 to $50,000 | 6.99% to 18% | 3 to 7 business days |
Typical ranges vary by lender, credit profile, loan term and membership requirements. The CFPB notes that shopping and comparing at least three lenders can lower the total cost of your loan.
Learn More: If I Apply for a Loan, Do I Have To Accept It?
Apply for a Personal Loan Online FAQ
How long does personal loan approval take?
Online personal loan approval usually takes anywhere from a few minutes to a few business days. Many lenders give an instant decision after you submit your application, while others need one to three business days to review your income and credit. Once approved, funds often land in your bank account within one to seven business days.
Can you get a personal loan with bad credit?
Yes, you can get a personal loan with bad credit, but you will pay a higher APR and may face lower loan limits. Some lenders work with credit scores as low as 580, and adding a co-signer or offering collateral can improve your odds. Be sure to compare offers so you do not pay more than you need to.
Does applying for a personal loan hurt your credit score?
Prequalifying for a personal loan does not hurt your credit because lenders use a soft credit pull. Once you submit a full application, the lender runs a hard credit inquiry, which can lower your score by a few points for up to 12 months. Making on-time payments after that can help your score recover and grow.
How much can you borrow with a personal loan?
Most online personal loans range from $1,000 to $50,000, though some lenders go up to $100,000. Your loan amount depends on your credit score, income and debt-to-income ratio. Only borrow what you can afford to pay back on time.
What can you use a personal loan for?
You can use a personal loan for almost any legal expense, such as debt consolidation, home repairs, medical bills, moving costs or a large purchase. Most lenders do not allow personal loans for college tuition, business expenses or investing. Check your loan agreement to see what is and is not allowed.
Key Terms
Personal loan: A lump-sum loan repaid in fixed monthly installments, usually unsecured.
Prequalification: A soft-credit-check estimate of your rate and terms that doesn't affect your score.
Soft credit pull: A credit check that doesn't lower your score, used for preapproval.
Hard inquiry: A full-application credit check that can lower your score by a few points.
Annual percentage rate (APR): The yearly cost of borrowing, including interest and certain fees.
Debt-to-income ratio (DTI): The share of monthly income going to debt payments; lenders often want it under 36%.
Origination fee: An upfront fee some lenders charge to process a loan.
Underwriting: The lender's review of your credit, income and documents to approve a loan.
Sources
Summary generated by AI, verified by MoneyLion editors
Antonio Ruiz-Camacho contributed to editing this article.
Photo Credit: vitapix / Getty Images
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