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Customized financing to consolidate high-interest debt or fund major purchases or expenses.
Unique economic conditions have Americans searching for new ways to save money. With credit card rates hovering at record highs, many are turning to personal loans to cover major expenses or consolidate debt. Personal loans typically come with flexible repayment terms1 and lower, more predictable rates.
If you’re interested in securing a personal loan, you’ll need to submit a loan application for approval from a lender. Below, we’ll walk you through how to get a personal loan and discuss beneficial personal loan approval tips.
A personal loan is a sum of money borrowed from a lender to cover a large expense or consolidate debt. While you must meet certain requirements to get a personal loan, you can use the money for almost anything if approved, such as paying off high-interest credit card debt or funding major expenses. Once approved, the lender will send you money in a lump sum, and you'll repay the amount you've borrowed, plus interest, in manageable monthly installments. If the loan is for debt consolidation, some lenders pay directly to creditors. Rates on personal loans tend to be lower than those attached to credit cards.
Most personal loans are unsecured, meaning they aren't backed by collateral, such as your home or car. Lenders will look at factors like your credit score and overall finances to determine if you qualify and at what rate.
When you apply for a loan, lenders will first verify that you meet personal loan eligibility requirements. During the application process, you'll be asked to verify your identity, income, and employment status.
After satisfying the initial qualifications, lenders will look at your finances to determine your creditworthiness—that is, your ability to repay debts. A lower credit score suggests to lenders that you may be a higher-risk borrower, and lenders may increase interest rates or shorten repayment terms as a protective measure. Borrowers with excellent credit usually receive more competitive offers.
A solid track record of making on-time payments and several years of credit history will ultimately increase your chances of approval.
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Common personal loan eligibility requirements |
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Minimum credit score |
Satisfy lenders' minimum credit score requirements |
Credit score |
Have a track record of responsible credit use (i.e., the number of accounts you have, how long they've been open, and whether your bills have been paid on time) |
Proof of income |
Meet minimum annual income requirement: Pay stubs, employment letters, and tax forms such as W2s and Schedule Cs |
Proof of identity |
Verify identity: Driver's license, passport, or government-issued ID |
Collateral (if applicable) |
Offer asset in exchange for loan, if applying for a secured personal loan |
FYI: A BHG personal loan does not require collateral as part of its eligibility check. Learn more about our easy application process here.
To apply for a personal loan, begin by checking your credit score and reviewing your credit history. Then, analyze your finances and gauge how your current debts align with your monthly income. Your debt, as well as your current expenses, will help you determine if the loan payment is within your budget and how likely you are to be approved for a loan. (More on this later.)
Understanding how much money you need can ensure you don’t borrow too much or too little. This also enables you to sift out lenders based on the range of loan amounts they offer.
Once you settle on a loan amount, you can begin to estimate your monthly payments. Remember, annual percentage rates (APRs) are partially determined by your credit profile and finances, with the lowest rates reserved for prime borrowers with excellent credit.
Most personal loan lenders offer prequalification, allowing you to view rate quotes with a soft credit inquiry, which won't impact your credit score like a hard inquiry.4 Prequalification usually takes just a few minutes. You’ll provide a desired loan amount within a range offered by the lender, income and employment details, and contact information, like your social security number.
Compare the loan options and terms—including rates, fees, repayment schedules, and monthly payments—to determine which lender has the best offer.
Next, you’ll choose a lender and apply for the loan. To speed up the process, gather the necessary documentation lenders will need to evaluate your financial health.
Examples of necessary documents include:
Some lenders require you to disclose how you’ll use the loan during the application. This helps them assess the risk associated with the loan and understand how you plan to use the funds.
Applying for a personal loan is comprehensive by design. BHG Financial aims to simplify this process using a concierge lending experience. Dedicated loan specialists will help you gather the necessary documentation to process your application and guide you through the process.
Once you’ve submitted your loan application, the lender will review it. If approved, you’ll sign the final loan documents, which detail your terms. Review the terms of your loan carefully before you sign, paying close attention to your monthly payments, disclosures, and any prepayment penalties.
After you sign your documents, the funds will be disbursed to you within a few business days. (If you plan to use the loan for debt consolidation, lenders may pay the creditors directly.) Formulate a plan to use the money responsibly and make timely payments.
Understanding a lender's personal loan requirements helps you find which lenders are most likely to approve your application. Requirements vary, but most lenders want to see a higher credit score, consistent income, and positive payment history when determining your eligibility, which suggests you’re able (and willing) to repay the loan on time.
Here are a few personal loan approval tips to consider:
With offers varying significantly among lenders, it’s important to shop around for a loan that meets your needs without compromising your financial wellbeing. Here are a few ways to identify the best personal loan for you.
TIP: Choosing a longer repayment term can make your monthly payments smaller. BHG Financial offers large personal loans up to $200,000,1 with no collateral required and fixed, affordable payments with terms up to 10 years.1,3
Yes, it’s possible to get a personal loan with bad credit, but you may face less-than-ideal terms like higher rates, lower loan amounts, and origination fees. Offering collateral or adding a cosigner can help improve your approval odds if you have fair or poor credit. Not all lenders are willing to work with borrowers with lower credit scores. Specialty lenders may take on higher-risk borrowers.
Most personal loans are processed within a few days, but some lenders may take several weeks to approve your loan and distribute funds. You can help speed up the process by working with a lender that uses a simple online prequalification form, prioritizes fast responses, and has dedicated loan specialists to guide you. Having all your required documentation ready will also help streamline approval. With BHG, you can receive funds in as few as five days if approved.2
The average personal loan interest rate hovers around 12%, according to the Federal Reserve. The lowest rates are given to those with excellent credit, and those with poor credit may see rates over 30%.
Applying for a personal loan will trigger a hard credit inquiry, which usually causes a small, temporary dip in your credit score. Some lenders will do a soft credit inquiry during the preapproval process to see what you may qualify for.
Unsecured personal loans don’t require collateral, while secured loans do. Any collateral asset put down for the loan—such as your home or vehicle—can be seized by the lender if you default on your secured loans. Unsecured loans have higher interest rates, while secured loans are usually easier to qualify for.
At BHG Financial, we believe financing should fit seamlessly into your life and goals. That’s why we offer personal loans tailored to your needs, with amounts up to $200,0001 and flexible terms of up to 10 years1,3.
Plus, you’ll enjoy dedicated, U.S.-based concierge service that works around your schedule—because your time is valuable. Ready to see what’s possible? Use our quick and easy payment estimator to get your personalized loan estimate in just seconds.
Not all solutions, loan amounts, rates or terms are available in all states.
* BHG monthly payment based on BHG’s minimum available APR of 14.63% as of 4.01.2025 and includes an origination fee. Your actual loan size, loan term, and monthly payment amount may vary based on your individual credit profile and other information provided in your loan application. Terms subject to credit approval.
1 Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.
2 This is not a guaranteed offer of credit and is subject to credit approval.
3 Personal Loan Repayment Example: A $59,755 personal loan with a 7-year term and an APR of 17.2% would require 84 monthly payments of $1,228.
4 There is no impact on your credit for applying. For personal loans, a complete credit history, which will appear as an inquiry on your credit report, will be performed upon acceptance and funding of the loan and may impact your credit.
Consumer loans funded by Pinnacle Bank, a Tennessee bank or County Bank. Equal Housing Lender.
For California Residents: BHG Financial loans made or arranged pursuant to a California Financing Law license - Number 603G493.