You will need a government issued photo ID, proof of residency, proof of income, and permission to conduct a credit check with a personal loan. All of these things allow a lender to verify your identity, your credit score, and your income. These are important factors in determining eligibility, loan amount, and interest rates.
For a government-issued photo ID you can use a driver’s license, passport, military ID, state ID, permanent residence card, etc. When proving where you live, documents like bank statements, utility bills, lease or mortgage agreements, pieces of mail will work. For proof of income you can use documents like bank statements, paystubs, letters of income, invoices, tax returns, etc.
Another thing a lender will ask for is your social security number or TIN number and permission to conduct a hard credit inquiry.
A hard credit inquiry lets your lender pull your credit report. This inquiry will mean a small decrease in your credit score—which is why multiple are not recommended in a short period of time. A hard credit check allows for lenders to get a detailed look at your credit history and make an approval decision based on that. Everything from late payments to your first loan or credit card will be listed on your credit report. Before applying for a personal loan, it will be a good idea to check it out yourself to correct any mistakes or inconsistencies on your credit report.
If you have a cosigner or co-borrower with your loan, they will also need to provide the same documents, information, and permissions.
Your personal loan application will usually not be that long, especially if you are applying online. You can find a personal loan at a bank, credit union, or through a private lender. Banks and credit unions are usually stricter with their credit requirements compared to private lenders. And so, if you have bad credit, private lenders are the way to go.
Once you submit your documents, it will take some time for a lender to check things and let you know about approval. Personal loan wait time can last up to a week. And once approved for your loan, the funds can be sent straight to a bank account, mailed as a check, or picked up.
