Personal loans have specific requirements for each lender, but broadly speaking, you will need your credit information and income. Preparing this in advance will give you a better chance of approval and speed up the process. Learn about the general loan requirements:
Proof of identity
To obtain a loan, you must prove your identity to avoid fraud, which is very common. You must provide identification that proves your residency, nationality, or that you are a long-term visa holder. Valid identification must be an official ID such as a passport, driver’s license, state-issued ID, military ID, SSN, or ITIN.
Proof of income
To be approved for a loan, you must prove that you can repay it. When you are putting together your proof of income to show it to a lender, include your tax returns, bank statements, and recent paychecks. Lenders may ask for your employer’s information to confirm your documents, but you can comply with this step if you provide a signed letter from your employer beforehand.
Your credit score is an important factor when evaluating your profile for a loan. Before you apply for any, you must review your score to find possible errors and correct them as soon as possible.
*No credit history? Learn about Upstart loans that don’t require a credit check.
- Upstart: This lending platform has a loan for every occasion. Upstart’s algorithm allows users to access loans using variables other than conventional ones (such as your college degree and work history). Ideal for fast financing and has the great advantage that no credit check is needed.
Be clear on your needs.
When applying for a loan, be clear on why you are applying to it. One of the first questions the lender will ask you is what you will use the loan for, and identifying the reason will help you find the best one for you. There are loans to cover specific needs, whether it is to consolidate debt or pay for an unexpected expense. It is also good to make a pre-loan budget to see how much debt you want to acquire and how long you want to keep it. A loan for a broader period could cost you more on interest rates, so define your priorities and evaluate your repayment capacity.