You may also need to provide income documentation, such as a pay stub, W-2 form, tax returns or bank statements. The lender will formally review your credit and a hard inquiry will appear on your credit report.

This remains on your credit report for two years and may temporarily ding your credit score by a few points for up to a year. After you submit your application, you can often get a decision within seconds, though some lenders may take more time to evaluate your financial and credit profiles.

Unlike prequalification, an official loan application typically requires a hard credit check, which can impact your credit score.

This deeper dive into your creditworthiness allows the lender to give you a firm offer, which may or may not be the same as the initial quote.

Once you're approved, review the offer and the loan's terms and conditions to make sure it's the right fit. If your terms aren't quite what you expected, you can go back and apply with a different lender. If you're happy with the terms, sign the loan agreement and the lender will disburse the loan funds.

A personal loan can help you build a good credit score. The positive ways that a personal loan can impact your credit score include:. On the other hand, missing a payment, paying late or defaulting on the loan can lower your credit score.

Aim to responsibly manage your personal loan so you avoid hurting your credit score. Consider monitoring your credit for free through Experian to see how your loan impacts your credit going forward.

Act fast. Once your loan payment is 30 days late, lenders may report it to credit bureaus. A late payment stays on your credit report for up to seven years and can negatively affect your credit score.

You might also have to pay late fees, have your account sent to collections or even face a lawsuit. If you don't think you can make your next loan payment, reach out to the lender to explain your situation.

Your lender may offer one of the following solutions:. You might look for an alternative to taking out a personal loan if you can't get approved, or if you only receive offers with high rates. A few popular alternatives include:.

Your creditworthiness and the reason why you want to get a personal loan can also impact which option may be best. Getting prequalified with multiple lenders can be time-consuming. Fortunately, Experian allows you to get matched with offers from multiple lenders at once based on your Experian credit profile.

This service speeds up the process for prequalification and also makes it easier to compare loan options side by side. Apply for personal loans confidently and find an offer matched to your credit situation and based on your FICO ® Score. Banking services provided by CFSB, Member FDIC. Experian is a Program Manager, not a bank.

ø Results will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost ®.

Learn more. Your lender or insurer may use a different FICO ® Score than FICO ® Score 8, or another type of credit score altogether. Editorial Policy: The information contained in Ask Experian is for educational purposes only and is not legal advice.

You should consult your own attorney or seek specific advice from a legal professional regarding any legal issues. Please understand that Experian policies change over time. Posts reflect Experian policy at the time of writing. While maintained for your information, archived posts may not reflect current Experian policy.

Opinions expressed here are author's alone, not those of any bank, credit card issuer or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities. All information, including rates and fees, are accurate as of the date of publication and are updated as provided by our partners.

Some of the offers on this page may not be available through our website. Offer pros and cons are determined by our editorial team, based on independent research. The banks, lenders, and credit card companies are not responsible for any content posted on this site and do not endorse or guarantee any reviews.

Advertiser Disclosure: The offers that appear on this site are from third party companies "our partners" from which Experian Consumer Services receives compensation. This compensation may impact how, where, and in what order the products appear on this site.

The offers on the site do not represent all available financial services, companies, or products. Once you click apply you will be directed to the issuer or partner's website where you may review the terms and conditions of the offer before applying.

We show a summary, not the full legal terms — and before applying you should understand the full terms of the offer as stated by the issuer or partner itself. While Experian Consumer Services uses reasonable efforts to present the most accurate information, all offer information is presented without warranty.

Experian websites have been designed to support modern, up-to-date internet browsers. Experian does not support Internet Explorer. If you are currently using a non-supported browser your experience may not be optimal, you may experience rendering issues, and you may be exposed to potential security risks.

It is recommended that you upgrade to the most recent browser version. Experian and the Experian trademarks used herein are trademarks or registered trademarks of Experian and its affiliates. The longer your loan term, the more time there is for the interest on your debt to build up.

So the shortest term is likely to involve the lowest overall cost. You can use a personal loan calculator to see what your monthly repayments will be over different time frames.

You will usually need to enter the amount you want to borrow, and the annual percentage rate APR , which estimates how much the loan will likely cost you once the interest rate and any fees are calculated.

Checking your credit score before an application can help to make sure you only apply for a suitable loan and allows you to spot and correct any problems that may be dragging your score down.

The three main credit reference agencies in the UK — Experian, Equifax and TransUnion — can all provide you with a free statutory credit report. For a full report, including your credit score, you may have to pay a subscription fee, though some platforms do offer this for free.

If your credit rating is less than ideal, there are several ways to improve your credit score to give you the best chance of being accepted for your loan when you do apply. Comparing loans and lenders is a simple way to help you find the most suitable loan for your situation.

The best loan for you will not necessarily come from your bank, so using a comparison tool can help you match up with the right lender. These services compare loans from multiple lenders, so they can be a quick way to see the range of loans that may be available to you.

Consider using tools from different providers as each one may compare different lenders. This can give you a good understanding of what sort of credit will be available to you. For example, lenders may set age or income requirements and some may not accept applications if you have a bad credit score.

Many lenders also allow you to check your eligibility for a loan, without affecting your credit score. Plus there are eligibility services that can check your eligibility for multiple loans with different lenders.

You will need to fill in some details about yourself and the loan you want to take out, which the lender will use to determine how likely it is that you will be accepted.

Lenders will run a soft credit check as part of this process. Bear in mind that even if the checker shows you are eligible for a loan, lenders will still need to run a hard credit check before approving a loan application.

But, as long as the information you provided in the eligibility checker is accurate, you are likely to be approved. You may also want to consider other forms of credit, such as a guarantor loan , which could be easier for you to get accepted as having a guarantor reduces the risk for the lender.

To apply for a personal loan , you may need to provide certain identification documents to act as evidence, including:. You may also need to show documentation that proves you have the right to live and work in the UK. Having this paperwork ready when you apply for your loan can speed up and simplify the process, as well as cut down the possible reasons for your application being delayed.

The application process will vary slightly from lender to lender, but most involve the same basic process. Once you have decided on the right lender for you, the next step is to complete your online application.

At this stage, you will be asked how much you want to borrow, how long you need the repayment period to be and what your reason for borrowing is. You will also need to provide the lender with your personal and financial information, including your:.

Most lenders will then require the details of a UK bank account to transfer the loan amount to you. Lenders will run a hard credit check as part of the application process.

This check will be recorded on your credit history and will be visible to other lenders. After you have applied for a loan with your chosen lender and passed its credit check, you will be offered an interest rate and sent a loan agreement.

This might be online, through the post or in-branch. Once you sign and return the agreement, you could get your money within days, or even on the same day. Different lenders work in different ways, so timescales may vary depending on which you choose. A poor credit history is a common reason why a lender might reject your loan application.

This is because it suggests you may not manage credit arrangements well. The good news is that it is possible to improve your credit score. The first step is to check that there are no mistakes on your credit report that could be affecting your score.

Paying bills and making other payments on time while reducing any debt you may have can help build a score that shows you are reliable when it comes to managing debt. Although other factors will come into the decision making process, such as your income and the affordability of the loan itself, loan providers often reserve their best deals for those with excellent credit ratings.

It will depend on the individual lender, how you have managed your credit commitments, how much of your available credit you are using, and whether the lender thinks you can afford to take on more credit. Lenders are likely to look more favourably at those with a lower utilisation rate.

If you are rejected for a loan, think carefully before you make another application.

Consider a bad credit loan Check your eligibility Re-organise your finances

Quick loan approval tips - Compare your options Consider a bad credit loan Check your eligibility Re-organise your finances

Lenders prefer borrowers with a consistent income source, as it reduces the perceived risk. If possible, avoid changing jobs shortly before applying for a loan, as this could raise concerns about your financial stability.

Consider a Co — Signer:. If your credit score is less than stellar, having a co-signer with a strong credit history can significantly improve your chances of quick loan approval. A co-signer agrees to assume responsibility for the loan if you default, providing added security for the lender.

Opt for Pre — Approval:. Seeking pre-approval before submitting a formal loan application allows you to gauge your eligibility without a hard inquiry on your credit report.

Pre-approval also signals to sellers or service providers that you are a serious and qualified buyer. Respond Promptly to Lender Inquiries:. During the application process, be responsive to any inquiries or requests from the lender.

Timely communication and cooperation can expedite the approval process and demonstrate your commitment to fulfilling the loan requirements.

Disclaimer : This article is provided for informational purposes only, based on publicly available knowledge. It is not a substitute for professional advice, consultation, or medical treatment.

Readers are strongly advised to seek guidance from qualified professionals, advisors, or healthcare practitioners for any specific concerns or conditions.

The content on intactone. Users assume all risks associated with its use, and we disclaim any liability for any damages that may occur as a result.

Skip to content Loan. Know Your Credit Score: One of the first factors lenders consider is your credit score. Choose the Right Type of Loan: Understanding the purpose of your loan helps you select the most appropriate loan type. Gather Necessary Documentation: Prepare all required documentation before applying for a loan.

Share this: Click to share on WhatsApp Opens in new window Click to share on Facebook Opens in new window Click to share on X Opens in new window Click to share on Telegram Opens in new window Click to share on Mastodon Opens in new window Click to share on LinkedIn Opens in new window Click to share on Reddit Opens in new window Click to share on Tumblr Opens in new window Click to share on Pinterest Opens in new window Click to share on Pocket Opens in new window Click to email a link to a friend Opens in new window More Click to share on Twitter Opens in new window Click to print Opens in new window.

Like this: Like Loading Previous Post Previous post: Key Differences between Zygote and Fetus. Next Post Next post: Small Business Loans: A Complete Overview. You might also like. January 24, January 26, January 21, January 23, January 22, January 14, If you're interested in applying with lenders that require higher credit scores to receive a personal loan, you'll need to work on improving your credit score if it doesn't already meet the minimum.

You should also avoid applying for multiple lines of new credit within the same time frame, which can cause a serious hit to your credit score.

Every time you apply for a new credit card or a new loan, the lender runs a hard inquiry into your credit report, which "dings" your credit and can temporarily lower your score. Make sure that if you do decide to go forward with an application that it's absolutely necessary for your finances.

It's always a smart idea to monitor your credit report for any inaccuracies, including any instances where lines of credit were taken out in your name that you weren't aware of. This can be a very serious issue, especially since such errors and unknown lines of credit can drag your credit score down by contributing to your utilization rate and debt-to-income ratio.

Many lenders will also consider how much money you're applying for when they're deciding whether or not to approve your application. Before you submit your loan application, carefully consider exactly how much money you'll need to borrow.

For example, if you're taking on a loan to consolidate your debt, calculate exactly how much debt you'll be consolidating — otherwise, you're just taking shots in the dark as to how much money you need to borrow. Also remember that the more money you need to borrow, the higher your monthly payments will likely be and the more interest you'll be charged.

A high monthly payment gives you less wiggle room in your budget , and while you can sometimes opt for a longer repayment term , that also means you'll be paying more in interest charges over the life of the loan.

A co-applicant is someone who applies for the loan with you and is equally responsible for paying back the full amount. Co-applicants are often referred to as co-borrowers and can usually be added onto your personal loan application form.

Applying with a co-applicant who has a higher credit score than you can help you get approved for a lower interest rate, and even help you gain approval where you otherwise may not have been considered. This is because it's common for lenders to analyze your credit history, debt-to-income ratio and other credentials during the process to determine the size of the loan, interest rate and the length of your loan term.

Having a co-applicant can be helpful if you don't have enough of a credit history under your belt to get approved for a lower interest rate. It may also help if you need to take out a larger amount of money but don't have a steady income.

Because co-applicants have a financial responsibility to repay what's borrowed, it makes sense for it to be someone who will also benefit from the loan.

Maybe you and your spouse are finally ready to tackle that home renovation you've been putting off for years; in this case, you might consider having your spouse be your co-applicant.

Or maybe you need more funding to take the next step with your business; if you have a business partner, this person will also benefit from the money and therefore may be willing to be your co-applicant as long as the lender allows you to use the loan for this particular purpose.

These are just some considerations you need to keep in mind when it comes to tacking on a co-applicant for a personal loan. Catch up on Select's in-depth coverage of personal finance , tech and tools , wellness and more, and follow us on Facebook , Instagram and Twitter to stay up to date.

Skip Navigation. Credit Cards. Follow Select. Our top picks of timely offers from our partners More details. Choice Home Warranty. National Debt Relief. LendingClub High-Yield Savings. Freedom Debt Relief.

Video