A personal loan can help you cover many expenses, whether you want to front the cost of a major home improvement or pay for an unexpected medical bill. While these loans are flexible and useful, lenders have varying qualification requirements for borrowers. For example, some may require good credit while others are designed with poor-credit borrowers in mind.

Worried you might not be eligible for a personal loan? Here’s the inside scoop on personal loan requirements and how to maximize your chances of approval.

5 common personal loan requirements

Lender requirements vary for personal loan borrowers, so it’s important to research and compare options before applying. Generally, though, you’ll need to provide the following:

1. Valid identification

Lenders generally require that you confirm your age and identity by providing a copy of a government-issued ID. Acceptable forms of identification may be a driver’s license, passport, military ID, Social Security card, or birth certificate, but check with the lender for specifics.

2. Proof of residence or address

You may also need to share proof of address. Valid documents may include a utility bill in your name, a copy of your lease or mortgage, a voter registration card, or a copy of your homeowners or auto insurance policy listing your address.

3. Consistent income

Lenders may have income requirements, such as earning a minimum of $25,000 annually, though this isn’t always the case. Regardless, you'll need to prove you have steady income or ample savings to afford your monthly payments. Pay stubs, bank statements, and other documentation for employment and income verification are typically required.

4. Manageable debt

Just because you have enough money coming in doesn’t mean you have the cash on hand to make your personal loan payments. Lenders consider your debt-to-income ratio (DTI) to measure your ability to make a loan payment.

Your DTI is expressed as a percentage and reflects how much of your gross monthly income goes toward existing debt, such as auto loans or credit card payments. Lenders often prefer a DTI below 36%.

5. Acceptable credit score and history

You don’t need perfect credit to qualify for a personal loan, though many lenders require at least good credit. Good credit scores range from 670 to 739. Some lenders may also accept fair credit (580 to 669), though you’ll typically end up with a higher interest rate.

Learn more: What credit score do you need for a personal loan?

How to increase your likelihood of approval

Understanding what lenders require is just the first step. The next step is determining how to improve your chances of qualifying for a personal loan. Here are some tips.

1. Check your credit

Before applying, check your credit reports for inaccuracies. You can get free copies of your credit reports at AnnualCreditReport.com. If you notice any errors, you can file a dispute with the credit bureaus and fix the issue before applying for a loan.

Note that your credit scores won’t appear on your credit reports. But banks and credit card issuers often allow you to check your credit scores for free. Since many lenders require good credit, understanding where your credit score stands is important before applying for a loan.

2. Shore up your finances

Before you start to compare loan options, make sure your financial house is in order. Consider supplementing your income with a side gig if your monthly debt payments are high. Ensure you’re up to date on monthly debt payments, limit your credit card spending to reduce your credit utilization, and set up automatic payments so you won’t miss a bill.

If your credit score isn’t great, these steps could help boost it before you apply for a loan.

Related: 7 ways to improve your personal cash flow

3. Calculate what you can afford

Next, determine how much you need to borrow and how long you’ll need to pay it back. Estimate your interest rate and use a loan calculator to determine a potential monthly payment. Personal loans often have repayment terms as long as seven years or as short as a year or two.

Knowing what you can comfortably afford before applying for a loan could help increase your chances of approval.

Do you need to prequalify for a personal loan?

While it’s not strictly necessary, it’s a good idea to prequalify for a loan with a few different lenders. You can often input a few pieces of personal information on the lender's website, and the lender will show you the estimated interest rates and loan terms you might qualify for.

Although the interest rate isn’t guaranteed, prequalification allows you to see the lender’s personal loan rates and your estimated monthly payment. While prequalifying with your current bank or credit union offers a good starting point, you’ll also want to prequalify with other lenders. Doing so will let you compare potential loan offers, helping you find the best and most affordable option.

It’s worth mentioning that the prequalification process involves a soft credit check, which won’t impact your credit score. Once you submit a full application, the lender will initiate a hard credit check, which will show up on your credit reports and could affect your credit score.

This article was edited by Alicia Hahn.