What Documents Are Required For A Personal Loan? Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: mavo/Shutterstock October 10, 2022 Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. To get approved for a personal loan, you must provide certain documents to your lender. These documents help prove your personal and financial information. A lender will review them before they decide whether to extend you a loan offer. While each lender has its own unique application and eligibility requirements, many of them look for similar documentation. By familiarizing yourself with the types of documents you may need, you can prepare for the application process and increase your chances of approval. Personal loan documents your lender may require
During the initial application and the verification process, you may have to provide your lender with a few documents. Most of the documents can be submitted electronically. 1 Loan application
Each lender will have an application to initiate the loan process, and this application can look different from lender to lender. For example, if you’re borrowing from an online lender, the application process is often done entirely online. The applications can typically be completed in person or online if you borrow from a traditional bank or credit union. This initial application is usually basic — it will often ask for your personal information, such as your name, address, phone number, date of birth, and Social Security number. It might also require you to state your desired loan amount and loan purpose. Some lenders will want you to include additional financial details like your gross monthly income or your monthly rent or mortgage payment. Be sure to answer each question accurately. 2 Proof of identity
Aside from obvious reasons like identity theft, lenders must be able to verify your identity to determine if you’re a United States citizen or permanent resident and if you’re at least 18 years of age. They might also want to confirm that you have a valid and active bank account. You’ll typically need to present two forms of identification, such as: Birth certificate Certificate of citizenship Driver’s license Military ID Passport Social Security card State-issued ID In most cases, you can make copies of your two forms of ID so that you don’t have to submit your originals to the lender. Once you do, be sure to store the originals in a safe place so you don’t misplace them. If you’re not a US citizen or permanent resident, you may be able to qualify for a loan with select lenders if you have a valid visa and Individual Taxpayer Identification Number (ITIN). 3 Employer and income verification
are different from many other types of loans, like mortgages or auto loans, in that there is no collateral backing the loan. This increases the lender’s risk and makes it even more important to verify that you have a steady source of income to repay the loan. If you are traditionally employed, you can usually verify your income with the following documents: Paystubs Tax returns W-2s and 1099s Bank statements Employer’s contact information If you’re self-employed, you can usually verify your income with the following documents: Bank statement 1099s Income tax returns To find your paystubs and tax forms, log in to your payroll provider’s online database or contact your human resources or payroll department. If you work with a CPA or other tax professional, they might be able to help you find the tax forms too. You may pull copies of your bank statements online after you log into your bank account. Don’t hesitate to contact your bank if you don’t see them. 4 Proof of address
Proof of your living situation can help a lender determine how stable your lifestyle is. You can usually use one of the following: Utility bill Lease or rental agreement Mortgage statement Proof of insurance on your home, lease/rental or vehicle Voter registration card Property tax receipt Bank or credit card statement If you need a change of address confirmation, the offers resources to help you change, and confirm, a change of residential address. While the fastest and easiest way to do this is online, you can also go to your local post office and complete a form in-person. What if you don t get approved for your loan
If you don’t get approved for a personal loan, there are a couple of other options to consider: Get a cosigner: A cosigner adds their name to your loan application. They agree to pay off the loan plus any additional fees if you default. If you have a trustworthy friend or family member with good or excellent credit, they may help you get approved for a cosigned loan. Note that your cosigner will likely need to provide the same documents as you when you both apply for the loan. If you go this route, make sure you repay it on time to avoid damaging your relationship. Choose a secured personal loan: Most personal loans are unsecured, meaning they don’t require collateral like your house or car. Secured personal loans, on the other hand, are backed by collateral. The lender may seize your collateral if you fail to repay your loan. By applying for a secured personal loan, you can reduce the lender’s risk and increase your approval chances. You’ll have to show documentation proving the value of the collateral and the fact you own it. Other information you may need
Although the lender will likely collect this information when you apply, it doesn’t hurt to have it handy if you’re asked about your credit rating or why you want to borrow the funds. Credit score
Once you initiate the loan application process, the lender will do a hard pull of your credit score, which will affect your credit. While some lenders only lend to borrowers with high credit scores, others are lenient and willing to take a chance on those with lower scores. Remember that if your credit score is on the low side, you may have to accept a higher interest rate. Loan purpose
While most lenders aren’t too concerned with how you’ll use the loan, understanding its purpose may help them recommend the best loan product for your needs. Some lenders offer loans for a specific purpose, like Or you could apply for a personal loan to cover the cost of home improvements and upgrades, medical expenses, adoption costs, wedding fees, travel, or some other big-ticket purchase. Monthly expenses
Some lenders will request an itemized list of your recurring monthly expenses. These include housing and utility costs, auto loan payments, insurance premiums, student loan payments and credit card payments. The sum of your expenses will be deducted from your monthly income to determine if you can comfortably afford the loan personal payment or if it could stretch your budget too thin. The bottom line
Gathering the information and documents you’ll need before applying for a personal loan can save you a ton of time. Plus, you can minimize the chance of having to deal with application processing and funding delays. Not all lenders have the same requirements, so reach out to confirm what you’ll need to apply. Learn more
SHARE: Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Related Articles