Personal Loan Requirements
5 Min Read | Published: December 2, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
What do you need to get a personal loan? Understand personal loan requirements and lender criteria so you can apply with confidence.
At-A-Glance
- Personal loan lenders usually decide whether to approve your application based on your credit, income, and how much of your paycheck already goes to debt.
- Applicants typically need to show a few basics like an ID, Social Security card, proof of address and income, and bank statements.
- Checking off these boxes doesn’t guarantee approval, but it can put you in a stronger spot when lenders make their decision.
Maybe you’re renovating your kitchen, planning a destination wedding, or looking to finance a move to Europe for the next stage of your career. A personal loan could help make it happen, but what do you actually need to get approved? Get prepared by learning about typical requirements and how you could use a personal loan to take the next step.
What Do You Need to Get a Personal Loan?
When you’re looking at a personal loan, lenders usually check a few key details to get a sense of how the loan might fit into your life. Every lender may weigh things a little differently, but most pay attention to common factors like your credit history, income, and how much debt you already juggle. With the right mix of factors in place, borrowing may feel a whole lot more manageable for you and less risky for lenders.
Credit Score and Credit History
Credit score requirements aren’t set in stone, but good credit scores that generally fall between 670-739 can often help you snag lower interest rates and better loan terms.1 But scores aren’t everything. Lenders also review your entire credit history to see how you’ve managed debt, with steady on-time payments and historically low balances showing you’re a safer bet.
Income and Employment
If you’ve been steadily employed and have a financial cushion to show for it, that may make you look more loan-ready in lenders’ eyes. They might need proof of income, like pay stubs or bank statements, to verify your earnings. If your income can comfortably cover estimated payments, that could boost your chances of approval.
Debt-to-Income Ratio
Picture your debt-to-income ratio (DTI) as a way of showing how much of your monthly income goes straight to debt. Lenders typically review it to see whether you have enough room in your budget for another loan. Generally, a lower DTI improves your approval odds and may even open the door to better terms.
Personal Information
When you apply for a personal loan, the lender will probably require a few basic details to make sure everything checks out.
Here’s what they might require:
- An ID like a license, passport, or Social Security card
- Proof of address, like a utility bill or a lease agreement
- Your bank account details so they can verify your direct deposit history or know where to send the money once approved
- Statements from creditors if you plan to roll other debts into the new loan
Other Key Personal Loan Requirements
On top of the basics like credit score, income, and DTI, lenders may also check a few other details that can shape your loan offer:
- Any Necessary Collateral
Some lenders might want you to back the loan with something valuable, like a car or savings, which could also help you score a better rate. If you default on the loan, the lender has the right to take your collateral. - Your Loan’s Amount
Asking for a bigger loan may mean you need stronger credit or a larger income to show you can handle payments. - Your Loan’s Purpose
Why you’re borrowing matters too, and reasons like debt consolidation, medical bill payoff, or home upgrades could affect how much you qualify for, if at all. - A Previous Relationship with the Lender
Sometimes, having an existing account in good standing with the lender can create more confidence, potentially boosting your approval odds. - Credit Activity
Hard credit inquiries happen when a lender pulls your credit file after you submit a new application. Too many recent hard inquiries might raise eyebrows, but a steadier record could help keep things in your favor.
Frequently Asked Questions
Lenders usually need to see your credit scores, income, and how much of your paycheck already goes to debt, along with proof of identity and where you live. They usually look for steady income, a history of paying bills on time, and a few supporting documents to verify your identity.
It can really come down to your credit and income. Stronger credit and steadier paychecks can make it easier to qualify for bigger amounts, and if you have the right paperwork ready, the process may feel pretty straightforward.
Every lender has its own cutoff, but many look for scores in the good or excellent range. Some may still work with lower scores if your income is solid, and you can always check your credit score for free to see where you stand.
There isn’t one set number, but lenders want to see that your income can cover the loan payment comfortably on top of your other bills. As long as your budget shows enough room for both, you may be in a good spot.
The Takeaway
At the end of the day, each personal loan lender’s requirements are slightly different, so if your financial situation isn’t perfectly suited for one, you may have luck with another. When you’re ready to apply, having your documents lined up can streamline the process. And if getting approved quickly matters most, making sure your income, budget, and credit are as strong as they can be before you submit your application could give you a better shot.
1 “What is a Credit Score?,” myFICO
Liv Gillespie is a Philadelphia-based writer with a double M.A. in English Linguistics & Literature and Secondary Education. Her work focuses on personal finance.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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