Man applying for a loan on his cell phone.

What You Need When You Apply for a Personal Loan

Written by: Rachael P.

Published on: September 27, 2022

Updated on: July 9, 2025

Applying for loans can seem a little intimidating for some, especially when life is already throwing its demands at us and pressuring us. Yet, we need the money to get the things we need to be completed. Luckily, Simple Fast Loans makes applying for a personal loan fast and simple and requires little from applicants to make their loan decision.

What Are Personal Loans?

A personal loan is a loan from a financial institution that is later paid off in installments for a fixed period. These loans do not require borrowers to offer collateral.

Borrowers will begin to repay personal loans once they receive the money until it's paid back entirely, typically borrowed for anywhere from two to seven years.

Personal loan eligibility can be determined via several factors, such as credit history, debt-to-income ratio, and free cash flow. Personal loans can also be unsecured, secured, or co-signed. For a loan to be co-signed, you need another applicant with good credit who will back you financially when you take out the loan.

Requirements for a Personal Loan

Here are the things you most likely need to get approved for a personal loan:

1. Proof of Identification

Lenders need to verify your identity to comply with federal regulations and prevent fraud. You'll typically need:

A government-issued photo ID: Driver’s license, passport, or state ID.
Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

Why it matters. Confirming your identity is the first step in ensuring you’re legally eligible to apply for credit.

2. Proof of Address

To confirm your residence, you may need to submit recent documentation such as:

A utility bill (electricity, gas, or water)
A lease or rental agreement (if renting)
A mortgage statement (if you own your home)
A recent bank or credit card statement

Why it matters. Your address helps lenders determine state-specific lending rules and your stability as a borrower.

3. Proof of Income and Employment

This helps lenders like Simple Fast Loans assess your ability to repay the loan. Depending on your job status, gather the following:

Recent pay stubs (usually from the past 30 days)
W-2 forms (for employed individuals)
Tax returns (typically for the past two years if self-employed)
Bank statements (especially if your income varies)
1099 forms (for freelancers or contract workers)
Additional documents for non-traditional income, such as:

Alimony or child support
Disability or Social Security benefits
Pension or retirement distributions

Why it matters. Lenders want a clear picture of your financial stability and income consistency.

4. Financial Account Information

Be ready to share:

Your bank account details (account and routing numbers)
Information on existing debts (e.g., current loans, credit card balances)

Why it matters. Lenders use this to calculate how a new loan would affect your overall financial situation.

5. Credit History and Score

Most lenders will pull your credit report to evaluate your creditworthiness. Here’s what they’ll look for:

A good credit score—typically 670 or above (Note: Simple Fast Loans accepts all credit scores)
A clean record of on-time payments
Responsible credit usage and account management

Why it matters. Your credit score can impact not only your approval chances but also your interest rate.

6. Debt-to-Income Ratio (DTI)

Lenders calculate your DTI to measure how much of your income goes toward debt payments. It's computed as:

DTI = (Monthly Debt Payments ÷ Monthly Gross Income) × 100

A lower DTI—generally below 36%—indicates you have room to take on new debt responsibly.

Why it matters. This metric gives lenders insight into your overall financial health and repayment capacity.

7. Purpose of the Loan

Most lenders will ask why you’re applying for the loan. Common reasons include:

Medical expenses
Emergency home improvement projects
Car repairs

Why it matters. Some lenders have restrictions based on how the loan will be used, and certain purposes may qualify you for better terms.

Common Documents Needed for a Personal Loan

When applying for a personal loan, you'll need to gather several key documents to support your application. We've provided an overview with some examples, but this more or less mirrors the items above.

Identification. To verify your identity, you'll need a government-issued ID, such as a driver's license or passport. This helps ensure that you are who you say you are.
Proof of income. Lenders want to know that you have a stable income to repay the loan. You can provide this with recent pay stubs, tax returns, or bank statements. If you're self-employed, you may need to submit additional documentation, such as profit and loss statements.
Proof of address. Lenders need to verify your current address. You can do this with a utility bill, lease agreement, or other official documents that show your name and address.
Completed loan application. You'll need to fill out a loan application form, providing details about the loan amount, purpose, and your personal information. Be sure to complete the form accurately and sign it. If submitting online, you may need to upload documents, so make sure you have access to documents you may need to upload as image files.
Credit history. Lenders will review your credit history, including your credit report and score, to assess your creditworthiness. You can access your credit report for free once a year from each of the major credit reporting agencies.
Employment Verification. Providing contact information for your employer helps lenders verify your employment status and income. This may involve a simple verification call or email to your employer.

How Can I Check My Eligibility?

You can check your eligibility for a personal loan by reviewing the lender's requirements and comparing them to your financial situation. Many lenders offer prequalification, which allows you to see if you're likely to be approved without impacting your credit score.

Peoples credit scores in a crowd

3 Signs Your Personal Loan Will Be Approved

Securing approval for a personal loan can feel daunting, but certain signs can indicate a higher likelihood of approval. Here are key indicators to look for:

Strong credit score. A credit score above the lender's minimum requirement is a positive sign. Lenders view a higher credit score as an indication of your ability to manage credit responsibly. A score above 670 is generally considered good and may improve your chances of approval.
Stable employment. Lenders prefer borrowers with a stable job and sufficient income to repay the loan. A steady job history and a reliable source of income demonstrate your ability to meet the loan obligations.
Low Debt-to-Income Ratio. A manageable level of debt relative to your income is another positive sign. Lenders calculate your Debt-to-Income (DTI) ratio to assess your ability to manage additional debt. A lower DTI ratio, typically below 40%, indicates that you have enough income to cover your current debts and the new loan payments.

Consider the above a solid trifecta for getting a personal loan approved. If you can boast those three things, most lenders will consider you a responsible borrower and approve your loan request.

Additional Factors That Can Affect Personal Loan Eligibility

When applying for a personal loan, it's important to consider several lesser-known yet impactful factors that lenders may evaluate in addition to your credit score and income. These elements can influence your eligibility, loan terms, and overall borrowing experience:

Collateral Requirements

Some personal loans are secured, meaning they require collateral—an asset you agree to pledge to the lender as security for the loan. This could include a car, savings account, or other valuable property. If you fail to repay the loan, the lender has the right to seize the collateral. While secured loans can offer lower interest rates, they also come with higher risk if you're unable to meet your repayment obligations.

Origination Fees

Lenders may charge an origination fee to cover the administrative costs of processing your loan. This fee is typically a percentage of the total loan amount and may be deducted from the disbursed funds. It's important to factor this into your overall borrowing costs, as it can impact how much money you actually receive and the total amount you'll repay over time.

Age and Residency Requirements

To qualify for a personal loan, you generally need to meet specific legal and residency criteria. Most lenders require borrowers to be at least 18 years old, though some states may have higher age minimums. Additionally, lenders often require proof of U.S. citizenship or permanent residency. Your immigration status can affect not only your loan eligibility but also the types of financial products available to you.

Tips to Strengthen Your Application

To boost your chances of getting approved with favorable terms:

Gather all documents in advance to avoid delays.
Compare multiple lenders to find the best interest rates and terms.
Pre-qualify to estimate your loan options without affecting your credit.
Prepare for follow-up questions about your financial history or employment.
Consider a co-signer if your credit is fair or limited—this can increase your odds of approval.
Read the fine print—every lender has unique requirements or may request additional documents.

The Benefits of a Personal Loan

Each type of loan has its pros and cons, so applicants must know what each type offers to apply for the right loan successfully. Personal loans can come with a variety of benefits, such as:

Higher/more flexible borrowing limit than other debt
Usually offer competitive rates
Make it easier to consolidate debt
Purchases can be paid for over time
Reliable repayment options and schedules
Longer repayment terms compared to other types of loans
Provides fast cash to borrowers
Repayment terms are usually longer compared to other types of loans
Help to pay for emergency expenses without tapping into savings
Builds your credit
It can be used for a variety of purposes
Great for non-discretionary purposes

Here are some of the additional advantages of opting for a personal loan:

Higher/More Flexible Borrowing Limit: Personal loans often provide borrowers with a higher borrowing limit compared to other forms of debt. This allows individuals to access the funds they need to meet their financial requirements.
Flexible Repayment Options: Borrowers have the flexibility to choose repayment terms that suit their financial situation, offering more control over managing their loan.
Longer Repayment Terms: Personal loans typically offer longer repayment terms compared to other types of loans, allowing borrowers to spread out their payments over an extended period.
Quick Access to Funds: Personal loans provide fast access to cash, making them ideal for covering emergency expenses or urgent financial needs.
Versatile Use: Personal loans can be used for a variety of purposes, such as home improvements, medical expenses, education costs, weddings, and more.

Considering the numerous benefits offered by personal loans, they are worth exploring as a viable financing option when the need arises. However, it is essential for borrowers to carefully assess their financial situation and repayment capacity before taking on any debt to ensure responsible borrowing.

Is a Personal Loan Right for You?

While personal loans offer several advantages, it's crucial to evaluate whether they align with your specific financial goals and needs. Here are some key points to consider before applying for a personal loan:

Assess Your Financial Situation: Before taking on any debt, review your current financial situation, including income, expenses, and existing debts. Determine if a personal loan is a feasible option within your budget.
Understand the Purpose: Clearly define the purpose of the loan and ensure that you use the funds for the intended expenses. Avoid using personal loans for discretionary expenses that may lead to unnecessary debt accumulation.
Research and Compare: Research different lenders and compare their interest rates, terms, and fees. Look for competitive offers that align with your needs and financial capacity.
Consider Repayment Terms: Evaluate the loan's repayment terms and assess whether you can comfortably manage the monthly payments over the loan's duration.
Check Your Credit Score: A good credit score can help you secure better loan terms and interest rates. Check your credit score and work on improving it if needed before applying for a personal loan.
Explore Alternatives: Depending on your specific financial needs, there may be alternative sources of funding worth considering, such as secured loans, home equity loans, or lines of credit.
Consult with Financial Advisors: If you are unsure about the best financial option for your situation, seek advice from financial advisors or loan experts who can guide you in making an informed decision.

Remember, taking on any form of debt is a significant financial responsibility, and it's essential to choose the right type of loan that aligns with your long-term financial goals. If you determine that a personal loan is the right choice, make sure to borrow responsibly and commit to timely repayments to maintain a positive credit history and financial stability.

Applying for a Personal Loan

All that is required to apply for an online personal loan through Simple Fast Loans is your name, address, an active checking account, proof of ID (such as a driver's license, passport, or other government-issued ID), income statements, a social security number, and the fact that you are at least 18 years old.

Once you submit your application, you will immediately receive a decision about your loan from Simple Fast Loans. Fees, terms, and a repayment schedule are disclosed after you apply for your loan. We will never sell or give your information to other websites or businesses.

Applicants should remember that approval is never guaranteed during the application process, and your results, such as the loan amount offered, depend on your state. Simple Fast Loans evaluates applicants’ ability to pay and their location to determine the best personal loans.

Increasing Your Odds of Approval

You can take several steps to increase your chances of personal loan approval. These things include:

Being prequalified for a personal loan
Improving your credit score (healthfully utilizing credit cards, making on-time payments on all your bills)
Routinely reviewing your credit history (staying up to date on any changes to it)
Disputing errors on your credit report
Keep a steady, well-paying, reliable job or other sources of income
Enlist a co-signer or joint applicant who maintains a healthy credit history and is willing to take over your loan payments if you are unable to pay
Be between the ages of 18-60 years old
Try to be sure you have worked with your employer for more than six months
Try to draw a yearly salary of $10,000-$20,000

Summary

Applying for a personal loan might feel stressful to some, but not to those who use it online with Simple Fast Loans. Now that you know what a personal loan can do for you, how to apply for one, its benefits, and what they consist of, you will be able to easily use it for what you need to achieve your financial goals.

Simple Fast Loans requires your name, address, active checking account, proof of ID (such as a driver's license, passport, or other government-issued ID), income statements, and a Social Security number. Furthermore, you must be at least 18 years old to apply for a personal loan.

Although to some, that may sound like a lot of information required to apply for a personal loan, Simple Fast Loans makes it easy to apply for a personal loan, and applicants receive their loan decision in minutes. Find out how you can receive a loan, the benefits of doing so, and how long you'll wait before you receive your loan decision.