Oct 09, 2025
To apply for a personal loan, you will need to meet several requirements defined by your lender, and you’ll want to have specific documents on hand to complete the application process.
We’ve laid out five steps to help you prepare to apply for a personal loan, including how to understand your eligibility and prepare your documents.
Do you need a personal loan to consolidate and pay down higher-interest debt? Do you need money to pay for home improvements, get help with unexpected expenses, or finance a dream vacation?
How you’ll use the loan funds can help you decide how much to borrow. It can even make it easier to choose a financial institution with loan offers that meet your needs.
Once you know why you need the loan it’s time to estimate how much you’d borrow. If you're looking for a debt consolidation loan, add up all the debts you want to combine to figure out how much you need to consolidate debt.
Decide how much you can comfortably afford to pay each month. Also, think about how long you want or need to pay off the loan. Discover® Personal Loans provides a simple tool to calculate your potential savings when consolidating debt.
Different financial institutions may have different minimum eligibility requirements including credit history, income, and other borrower requirements. For a Discover personal loan, for example, you must have a minimum individual or household annual income of $25,000 to be considered.
Your loan approval odds depend on how well you meet the lender’s requirements.
In addition, there are two factors in your financial profile that lenders may look at to determine your creditworthiness:
Your credit score is important. It influences the loan amount, loan terms, and the interest rate that a lender might offer you. You can find your credit score in several ways. It might be on your credit card statement, or you can get it from credit counselors, credit score services, or through the major credit bureaus along with your credit report.
Your debt-to-income (DTI) ratio may also impact your eligibility. This number compares how much you earn to how much you spend on rent, mortgage, credit cards, or other debt each month. Lenders may use your DTI to determine their risk in lending to you and whether they believe you have sufficient income to repay the loan amount you requested. In other words, your debt-to-income ratio is a measure of your creditworthiness.
It’s okay, and even important, to compare different lenders and how you meet their eligibility requirements before you decide to apply for a personal loan.
When you apply for a personal loan, the lender may require documents to prove the information on your loan application. If you don’t have those documents available a lender might not be able to make an approval decision. This could delay your loan application or cause it to be declined.
This checklist can help you make sure you have what you need for your personal loan application. Keep in mind, this list is representative and not necessarily comprehensive.
You should be able to trust the people and companies that lend you money. Check for consumer reviews on the lender’s website and read reviews on websites that compare different banks, credit unions, and financial institutions. The more assurances you can get, the better.
Compare different lenders’ personal loan terms and requirements. Some lenders, like Discover, may offer soft credit check to help you evaluate your loan offers. Discover Personal Loans lets you check the rates you qualify for with no impact to your credit score.
Additionally, some lenders charge origination fees that are deducted from the total loan approval amount. This means that you’ll receive less money when the funds are deposited to your account. Others may charge a prepayment penalty that costs you extra money if you exceed the monthly loan payment and pay off your loan before the repayment term.
No matter which lender you choose, be sure you understand the application process and the repayment terms. Then, once you have the documents you need, the online loan application process can be fast. If you have questions, your lender should be able to help you complete your application.
Finally, if you are approved, read the loan agreement carefully before saying “yes.”
That’s it! Discover Personal Loans is here to help make your application process as easy as possible. Our friendly, dedicated U.S.-based personal loan specialists can walk you through our available repayment terms, so you can select the one that meets your financial goals.
Now that you know what you need, see the steps involved in applying for a Discover personal loan.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
