How to get a personal loan, step by step

The six steps

A personal loan is money you borrow in one lump and repay in fixed monthly payments. Getting one is mostly a matter of preparation. Here is the order to do things in.

1. Decide how much you actually need

   Add up the cost you are covering and stop there. A bigger loan means more interest, and a smaller one is easier to be approved for. Then check the payment fits your month.

   Try a few amounts in the payment calculator

2. Look at your credit reports

   Lenders will look at them, so look first. You can get your reports free at AnnualCreditReport.com. If something is wrong, such as an account that isn't yours, dispute it with the credit bureau before you apply.

   Fix errors before a lender sees them

3. Compare lenders by APR, not just the payment

   APR is the yearly cost of a loan including interest and required fees, so it puts different offers on the same footing. Also check for an origination fee, the term, and the total you would repay. If you belong to a federal credit union, ask about a payday alternative loan, which is capped at 28% APR.

   See how our rates and fees are set out

4. Prequalify with a soft inquiry

   Many lenders, including us, show you a rate using a soft credit inquiry. It doesn't affect your credit score, so you can check with more than one lender and compare real numbers.

   A soft inquiry leaves your score untouched

5. Get your details together

   Having these to hand makes the application quick.

   What to have ready

   Tick them off as you go. What a lender asks for varies; these are the usual items.

   A government-issued photo ID Your Social Security number Proof of income, such as recent pay stubs or bank statements Your checking account and routing numbers An email address and mobile number

6. Apply, read the agreement, and get funded

   When you accept an offer the lender may make a hard credit inquiry. Before you sign, read three numbers: the APR, the monthly payment, and the total you will repay. After you sign, the money is sent to your bank account. With us that is by ACH direct deposit, as soon as the same business day.

   Check the APR, the payment, and the total

What lenders look at

Every lender weighs things a little differently, but the same few questions come up.

• Your credit history. How you have handled credit before, including on-time payments and how much of your available credit you use.
• Your income against your debts. What comes in each month compared with what already goes out to other lenders.
• The loan itself. How much you want and how long you want to repay it.
• Where you live. Lenders are licensed state by state, and amounts and fees vary.

For an Instacash loan you need to be 18 or older, a U.S. citizen or permanent resident in a state where we lend, with a regular source of income, an active checking account, and an email address and mobile number.

If you are turned down

A lender that declines you has to tell you why, or tell you how to find out. You are also entitled to a free copy of the credit report they used if you ask for it within 60 days.

Use the reason. If it was the amount, try a smaller loan. If it was your credit history, a few months of on-time payments and lower card balances can change the answer. If it was an error on your report, dispute it and apply again once it is corrected.