How to Get a Personal Bank Loan with No Collateral

Unsecured personal loans are loans that do not require collateral for security. Sometimes called signature loans, they can be a line of credit or a lump sum loan, depending on your need. The bank or credit union you use now is the best place to apply. Because there is no collateral, expect the interest rate to be high. Also expect close scrutiny of your credit and income stability.

Things You'll Need

  • W2s for 2 years
  • Pay stubs for 30 days
  • Credit report and scores

Getting An Unsecured Personal Loan

Step 1

In unsecured lending, credit is crucial. Go to and request all three of your credit reports. These are free to you once per year. You can get credit scores, but there is a small charge for them. When you get the reports, check the listed accounts for duplications, errors or entries that you do not recognize. Dispute them by calling the customer service number listed on page one of each credit report. Look at your scores too. If they fall under 640, bring them up by paying down credit card debt (to 30 percent of their credit line) before applying for a large unsecured loan. If that's impossible, try to shift balances among your accounts so all the balances are relatively low.

Step 2

Gather your income documents (W2s and pay stubs) and make an appointment at your bank or credit union to discuss an unsecured personal loan.

Step 3

Once at the bank or credit union, fill out an application a loan officer will provide you. The loan officer will go over the application with you, ask questions and calculate your debt ratios based on your income documents. He will pull your credit. Be prepared to tell him why you need the loan. Depending on your scores and the bank's requirements for scores for an unsecured loan, the loan officer will say yes or no to the loan.

Step 4

If you're approved, the loan officer will explain that your loan will be processed and an employment verification done. Then the loan will be prepared for signatures. When all documents are signed, you will be receive the loan proceed check.

Tips and Warnings

  • When you dispute items on your credit report, you must give the credit bureaus 30 days to respond. When applying for an unsecured loan, check credit and scores 60 to 90 days in advance of applying to give time for disputes and for other credit-raising techniques to be reflected in your credit report and scores.

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