Millions of people have benefited from taking out personal loans. This type of installment loan is often affordable in terms of interest rates and can be approved in mere minutes so that you can handle your important expenses right away. These loans have been used to fund many financial endeavors, big and small, with generally low interest rates and the convenience of online application processes.
If you are one of the people who feel that their life could be improved by taking out a personal loan, don’t rush to apply just yet. There will be information asked of you when you apply. For the sake of keeping the application process smoothly going and fast as it’s designed to be, make sure to have the proper documentation on-hand before you apply.
Personal Identification Information
Of course, a lender wants to know that you are who you say you are. This means that you will be required to give the lender some type of personal identification. The personal identification part of the process helps to protect individuals from identity theft. It also lets the lender feel confident that they are not being duped.
Forms of accepted personal ID include:
- Government-issued photo identification cards
- Driver’s licenses
- Military identification cards
- Social security cards
Verification of Income
Clearly, no lender wants to give money to someone who they feel can’t be expected – realistically, anyway – to repay their loan. Giving out loans of large sums with no proof of income leaves lenders vulnerable to an abuse of their systems.
This step also helps individuals to stay responsible with their loan. You will not be given more than you can afford to repay. Being unable to repay a personal loan can drastically impact a person’s credit, making other things in life (like buying a home) quite difficult.
To verify your income with a lender, you may be asked for:
- Paycheck stubs from your job
- Tax return forms
- A verification of income, written by your employer
- Alimony or child support payment documentation
Proof of Address
Different areas have different laws that relate to how loans are dispensed, so the lender will need to verify your address. This can be done easily if you live where you say you do. Ways that you can prove your address to a lender include, but may not be limited to:
- Utility bills
- Car insurance information
- The lease to the home