Key insights:
- Getting a personal loan is typically a simple process
- Before you apply for a personal loan, it's a good idea to make a budget, check your credit report and compare offers through pre-qualification
- Citi® offers unsecured personal loans for qualified applicants that you can apply for in just a few minutes
When you need extra cash to consolidate debt or handle an unexpected expense, like a car repair, a personal loan may be a practical solution. But if you don’t know how to apply for a personal loan, you’re not alone. In a recent Citi survey, only 32% of respondents said they didn’t find any aspect of credit confusing1.
The good news is that the process is often very straightforward, and you can usually complete the loan application online.
Let’s walk through the 6 steps you typically need to take to apply for a personal loan:
Step 1: Consider your funding needs and budget
First, figure out how much you need to borrow. This will depend on what expenses you want to cover with the loan. Personal loan amounts can vary widely depending on the lender, but you may need to rule out certain lenders if they don’t offer a high (or low) enough loan amount.
Because taking out a personal loan involves paying back the amount you borrowed in monthly payments plus interest, you’ll also need to think about your budget. Consider how your personal loan payments will fit in with your other expenses going forward. Learning about personal loan calculators may help here. Knowing your other monthly debt payments, expenses and savings goals can also help you figure out what size loan you want to apply for.
If you're new to budgeting, the 50/30/20 method is a tool many people choose to use to manage their expenses. With this rule, you allocate:
- 50% for your needs, or things you have to pay regularly like rent, car payments and groceries
- 30% for your wants, like going out to eat, going to the movies or going on trips
- 20% for savings and debt repayment
Looking at your past few months of expenses can help you get a better sense of how much loan to apply for.
Step 2: Check your credit report
Your creditworthiness will play a critical role in whether you’re approved for a loan, and if so, what your loan amount and interest rate might be. Before you apply, it's a good idea to check your credit report.
You can check your credit with each of the 3 major credit bureaus (Experian, Equifax and TransUnion) for free online every week. When reviewing your credit report, look for any errors, like an account that isn't yours or a debt that has already been paid off. You can dispute these errors with the relevant credit bureau, and a correction could potentially help boost your creditworthiness.
In general, having a better credit score can help you get a lower interest rate, so it's worth focusing on improving your credit before you apply. The higher your credit score, the more options you may have for lenders and loans.
Step 3: Compare different types of personal loans
Research lenders and the types of personal loans they offer. Look at their terms and conditions and policies to decide which loan is right for your financial situation. Some of the factors you may consider include:
- Annual percentage rate (APR): The APR represents your overall cost of borrowing, so the lower the available rates, the better it is for your finances
- Terms: You may wish to get a longer term for a lower monthly payment amount, or opt for a shorter term to save money on interest in the long run
- Fees: Some lenders may charge origination or late fees, which can increase your cost of borrowing
- Limitations: While personal loans can be used for many purposes, some lenders may limit how you may use those funds
Step 4: Pre-qualify, if possible
Some lenders offer pre-qualification, which can help you understand whether you’re likely to qualify for a personal loan, and if so, what your terms might be. Unlike an official application, pre-qualification doesn’t impact your credit score.
Typically, you need to provide basic information, such as how you plan to use the money as well as your name, Social Security number and date of birth. Pre-qualification is not a guarantee of approval, but it can help you narrow down your personal loan options.
Step 5: Gather your documents
Once you’re ready to apply for a personal loan, you typically need to provide documentation to prove your identity, address and income. The requirements may vary by lender. However, most lenders ask for:
- Personal information: The lender will usually ask for details like your full legal name, contact information, birth date and Social Security number
- Housing expenses: Lenders typically ask how much your mortgage or rental payment is
- Proof of identity: A government-issued ID, like your passport or license, will typically suffice
- Proof of income: Lenders generally accept pay stubs for the past 30 days, W-2s, 1099s, or tax returns for the previous 2 years. You can also include additional proof of income, such as Social Security or Supplemental Security payments
Step 6: Submit your personal loan application
Once you’re ready, you can submit the application and find out whether you’re approved. The timeline from application to approval depends on the lender.
If approved, you may get your money the same day. However, it may take longer, depending on the lender and how you’ve opted to receive funds. For example, Citi® Personal Loan borrowers can get their funds on the same business day when deposited directly to a Citibank account or within 2 business days when deposited directly to an external bank account2.
Citi offers unsecured personal loans to qualified applicants. If you think you could benefit from a Citi Personal Loan, apply online today.
Frequently asked questions
How do I get a personal loan for the first time?
If you’ve never taken out a personal loan before, it’s a good idea to take the time to understand the costs and benefits of a personal loan, check your credit and explore loan options through pre-qualification to find loans that may make sense for you.
What are the requirements for a personal loan?
Personal loan requirements can vary by lender. For example, some lenders may require a higher credit score and income, while others may be more flexible about those factors. Pre-qualification can help you understand if you’re likely to qualify for a given personal loan.
How can I qualify for better personal loan terms?
Focusing on improving your creditworthiness may help you access personal loans with better terms, such as a lower interest rate. Some of the steps you may consider include paying down your credit card balances and signing up for autopay on debts to avoid missing payments.
This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
1U.S. Consumer Cards Credit Trends Survey, March 2026, page 12
2Once approved, Citibank can deposit funds directly into an existing Citibank account the same business day, or within 2 business days when deposited to an external bank account, provided the bank account has not been recently opened. In such instances, Citi reserves the right to reject the bank account as the disbursing account for personal loan funds, and you can select another bank account or select to receive a check by mail, which is delivered generally within 5 business days.
