Find out what lenders require to verify your information.
Whether you’re ready to submit your personal loan application or you’re still in the researching stage, it helps to know what you need to apply. This guide will bring you one step closer to being approved for your personal loan.
The documents needed to verify your identity
Lenders usually require at least two forms of identification. These can be any of the following:
- Driver’s license
- Passport
- State ID
You may also need supplementary documentation in the form of:
- Your birth certificate
- Certificate of Citizenship
- Utility bills
- Military ID
How lenders can verify your income
When you fill out the application form, lenders will need the following information and details to verify your income:
- Income details including pay stubs and tax returns
- Financial details such as banking statements or any other type of income
- If you’re self-employed, tax returns from the last two years or another document proving income
Minimum income requirements for top lenders
What other financial information will be required?
Lenders will also require information regarding your assets, debts and liabilities. Here are some of the other details to have on hand:
- Current credit card and loan statements
- Any documents that can prove additional sources of income
- An estimation of your current expenses
- A current rent or mortgage statement
How do lenders verify your employment?
Many lenders will ask for your employer name and phone number in the full application. Your employer won’t necessarily be contacted by the lender though. Your pay stubs coupled with direct deposits are usually enough to satisfy a lender’s employment verification.
If needed, the lender can get in touch with your employer to verify. This is more common with mortgages than personal loans.
Compare top online personal loans
Do you need to provide extra documents if you’re buying a car?
Yes. A secured loan requires extra documentation so the lender can verify certain details about the asset. These details will need to be confirmed with the lender before you apply and especially before you purchase the asset. Expect to provide any of the following documents when applying for a car loan:
- Car insurance policy
- Dealer tax invoice (if purchasing from a dealership)
- Car registration number
- Vehicle ID (VIN) number
- How much you paid for the car
- The contact information of the seller (dealership or private seller)
Three quick tips to speed up the application process
- Know what’s needed before you start. To get everything organized, check the full list of required documents before you start your online application. When you click through to the lender’s site it will usually be listed before you begin.
- Scan all your documents. It’s a good idea to have an electronic copy of your important documents for other purposes as well. It provides easy access whenever you need to complete an online application and could serve as a backup in case you lose the original.
- Start now, finish later. Take advantage of the “save and complete later” function offered on most online application forms if you don’t have everything on hand. You will be given login details to come back later.
By knowing what exactly what documents you’ll need, completing your loan application can be quick and stress-free. Now you know what to expect, you can confidently compare a range of personal loans and apply today.
