Personal loans can be used for a variety of things. You can take out a personal loan to make home improvements, pay off medical bills, consolidate your credit card bills to one payment with a lower interest rate, or take a vacation. If you are thinking about taking out a personal loan, you are going to need to have a good credit score. Most lenders require you to have a credit score of at least between 580 – 600. Before applying for a personal loan, you should check your credit score. There are sites online such as Credit Karma that will allow you to check your score for free without affecting your credit. If you check your credit and your score is high enough, there are certain documents that you are going to need when you apply.
Proof of Identity
In order to apply for a personal loan, you’re going to need proof of identity. The lender is going to need proof that you are who you say you are. The documents that lenders will generally accept include:
- A Driver’s license
- A Voter registration card
- A Passport
Proof of Residence
To apply for a personal loan, you will need to provide proof of residence. The lender will need to know where you live so that they can send bills and statements. If you default on the loan, they will need to know where to find you. There are a few documents that lenders will generally accept:
- A utility bill, no more than three months old.
- A copy of your current lease if you rent.
- A mortgage slip if you own your own home.
You’re also going to need to provide the lender with your current telephone number and email address.
Your Employer’s Information
If you have an employer, most lenders will require that you provide them with the name, address, and a contact number for your employer. You don’t need documentation; however, you will need to list this information on your application. If you are self-employed, you would simply need to list the name of your business and its official address.
Proof of Income
You’re going to need to show the lender how much money you make so that they can be sure you can afford to make the loan payments. If you work for an employer, you will generally need to provide your last three pay stubs. There are some lenders who require that you go further back than three weeks. It all depends on the lender. Some lenders might also require you to provide your last three months of bank statements. If you’re self-employed, you will usually need to show your audited financial statements and your last three months of bank statements. There are some lenders who will ask for your business tax returns for the last three years.
If you’re planning to apply for a personal loan, you should make sure that you have all of the necessary documents before sitting down with the lender. This will ensure that you get your money as quickly as possible without any delays.