Core Eligibility Requirements
While requirements vary by lender and product, most US personal loan lenders apply the following baseline criteria:
- Age: 18 years or older (19 in some states)
- Residency: US citizen or permanent resident with a valid Social Security Number
- Bank account: A valid US checking account for deposits and autopay
- Income: Verifiable income from employment, self-employment, benefits, or other qualifying sources
- Credit: Most lenders require a minimum credit score (see benchmarks below)
Credit Score Requirements by Loan Type
| Loan Type | Typical Minimum Score | Notes |
|---|---|---|
| Personal loan (mainstream) | 640–670 | Wide range, some online lenders accept 580+ |
| Personal loan (specialist/subprime) | 560–620 | Higher rates; more restrictive terms |
| Home equity loan | 620–680 | Often 680+ for better terms |
| HELOC | 620–680 | Stricter lenders may require 700+ |
| Cash-out refinance (conventional) | 620 | FHA: 580 minimum |
| Auto loan | 580–620 | Varies widely; subprime options at lower scores |
| Credit union personal loan | 580–640 | Credit unions may weigh relationship and character |
These are indicative minimum benchmarks, not guarantees of approval. Lenders apply their own thresholds independently. Meeting the minimum score does not guarantee approval if other criteria are not met.
Income Requirements
Lenders want evidence that you can afford the monthly payment without defaulting. They look at:
- Income level: Most personal loan lenders require minimum gross income of $20,000–$30,000 per year for modest loan amounts. Higher amounts require proportionally higher income.
- Income stability: Steady employment history (typically 12–24 months in the same role or industry) is preferred. Frequent job changes can flag risk.
- Income type: W-2 salaried income is the easiest to verify. Self-employment, contract, freelance, or irregular income is verifiable, but requires more documentation and may require two years of tax returns.
Debt-to-Income Ratio (DTI)
DTI is the ratio of your total monthly debt payments to your gross monthly income. Most lenders apply a maximum DTI, often 43%–50%. A new loan must fit within this threshold including its own monthly payment.
See our how much can I borrow guide for a full DTI calculation and benchmark table.
Documentation Requirements
Prepare these before applying to avoid delays:
| Document | Purpose | Who Needs It |
|---|---|---|
| Government-issued photo ID | Identity verification | All borrowers |
| Social Security Number | Credit check + identity | All borrowers |
| Last 2–3 pay stubs | Income verification | Employed borrowers |
| Last 2 years' tax returns (1040) | Income for self-employed | Self-employed / contractors |
| W-2 forms (last 2 years) | Income and employment | W-2 employees if requested |
| Bank statements (2–3 months) | Cash flow verification | Some lenders |
| Proof of address | Residency confirmation | Some lenders (utility bill or lease) |
| Property info / appraisal | Collateral for secured | Home equity loans, HELOC, refi |
How Employment History Is Assessed
Lenders look for stability, not just a current job. Two or more years of continuous employment in the same role or industry is the benchmark for most mainstream lenders. However:
- A recent job change at higher pay in the same field is generally not penalized
- Gaps in employment are typically flagged if they exceed 3–6 months
- Self-employed borrowers may need to show 2 years of business tax returns and a profit-and-loss statement
- Benefits income (disability, Social Security, pension) is acceptable, most lenders need an award letter as documentation
Hard vs. Soft Credit Inquiries
Many lenders offer a pre-qualification step using a soft inquiry , which does not affect your credit score and gives you an estimated rate before you commit to a full application. The formal application then triggers a hard inquiry (typically –2 to –5 points, temporary). Always use pre-qualification where available.