How Do You Apply for a Personal Loan?

Applying for a personal loan is typically a straightforward process. You can usually complete the application online, over the phone, or in person if the lender has brick-and-mortar locations. Here are the steps involved:

Step 1: Decide how much you need and how it fits into your budget

First, figure out how much you need to borrow. This will depend on what expenses you want to cover with the loan.

Then, figure out your budget. Consider how payments – principal plus interest – will fit into your budget going forward. Look at your other monthly debt payments, expenses and savings goals to figure out what size loan you want to apply for.

Step 2: Check your credit

Your credit will play a critical factor in whether you’re approved for a loan. Before you apply, you may want to request your credit report (you can request a credit report from each of the 3 major credit bureaus every 12 months) and look for any errors. Keep in mind that better credit can help you get a lower interest rate. The higher your credit score, the more options you will have for lenders and loans.

Help manage your finances with a
Citi® Personal Loan

Step 3: Compare different types of personal loans

Research lenders and the types of personal loans they offer. Look at their terms and policies and decide which loan is right for your financial situation.

Step 4: Gather your documents and apply

Applying for a personal loan requires documentation to prove your identity, address and income. While other documents may be necessary, here’s what most lenders require:

• The application – the lender will usually ask for details like your full legal name, contact information, birth date and Social Security number.
• Proof of identity – a government-issued ID, like your passport, license or voter ID card will probably suffice.
• Proof of address – your ID can serve as proof of address. You can also use a utility bill, rent bill or residential lease.
• Proof of income – Lenders generally accept bank statements from the past 2 months and your 2 most recent paystubs. Other ways to prove income include your tax documents, such as W-2s and 1099s, and your tax returns. You can also include additional proof of income, such as Social Security or Supplemental Security payments.

Step 5: Submit your application and receive funds, if approved

Once you’re ready, you can submit the application and find out whether you’re approved. How long this takes can depend on the lender. Citi ® personal loan applicants get a response in under 60 seconds.

If approved, depending on the lender and how you’ve opted to receive funds, you could get your money the same day, or it could take a little longer. Citi customers can get their funds the same business day when deposited directly to a Citi bank account or within 2 business days when deposited directly to a non-Citi bank account 1 .

1 If you are approved for a personal loan with Citi, you can get your funds the same day with a Citi deposit account, or up to 2 business days for a non Citi account when using direct deposit. Or you can select to receive a check by mail in approximately 5 business days.

Citi offers personal loans to both existing Citi customers and new Citi customers that meet specific eligibility criteria, including an established credit and income history along with additional factors determined by Citi. If you think you could benefit from a Citi Personal Loan, apply online today.

Disclosure: 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.