 TITLE: If I Get Approved for a Personal Loan, Do I Need to Accept It? CONTENT: How Do I Apply for a Personal Loan?\n-----------------------------------\nGetting a personal loan is a relatively easy process. You can apply for one with a bank, credit union or an online lender. Depending on which institution you're working with, you may be able to get preapproved before you officially apply.\nThe preapproval process includes sharing a little bit about yourself and your partial or full Social Security number, and the lender will run a soft credit check and share one or more quotes for rates and other terms. This process won't affect your credit, so it's a good idea to look for lenders that offer it.\nAfter you've been preapproved and you like what you see—or if the lender doesn't offer preapproval—you'll submit an official application. During this part of the process, you'll typically need to share more information, including your:\n*   Social Security number\n*   Address\n*   Proof of income and employment\n*   Government-issued photo ID\n*   Bank information\n*   Purpose for the loan\n*   How much you want to borrow\nOnce you submit the application, the lender will review the information you've shared and check your credit reports and score. It may also calculate your debt-to-income (DTI) ratio—your monthly debt payments divided by your gross monthly income—to see whether you can afford to take on more debt right now.\nIf your application has been approved, the lender will contact you with the terms and typically allow you a certain period to determine whether you want to accept.\nInstead of going with your own bank or credit union, or picking the first offer that comes your way, it's essential that you shop around and compare several lenders, so you may need to go through this process more than once.\nWhile that may sound redundant, different lenders have different criteria for how they determine rates and judge applicants. Checking terms with multiple lenders gives you the chance to make sure you get the most favorable terms you qualify for. END