Whether you’re considering consolidating credit card debt, paying for home repairs, or getting past an unexpected emergency, applying for a personal loan may be your best financial move.
However, applying for a loan can take longer than you think. That’s why coming in with all the necessary documents for loan applications can save you and your lender both time and effort, ultimately getting your loan approved much more quickly.
If you’re unsure where to begin on your personal loan paperwork, here is a list of seven common documents your lender may request, as well as how to find them.
What do you need to apply for a loan?
1. Credit score and history
Most lenders will pull both your credit score and history for you.
However, it’s always a good idea to do your own credit check to make sure everything on your credit history is correct before you begin your loan paperwork.
A good credit score signals to the lender that you’re able to manage your money and debts. It can also reward you with substantially lower interest payments each month!
On the other hand, a low credit score, a history of not paying your bills on time, or a limited credit history, can significantly lower your chances of being approved for a personal loan.
You should also sign up to get a free annual credit report through AnnualCreditReport.com. That way, you can see what a potential lender will see when they review your loan paperwork.
Anything that doesn’t seem correct on your credit report should be reported to all three of the credit bureaus as soon as possible so you can continue to apply for your personal loan.
2. Valid identification
While some documents for loan applications are trickier to get, others are right in your back pocket.
If you have a valid driver’s license or state-issued identification card, then you have valid identification. Most lenders want to see an ID that is recent in issue, lists your current address and has a clear picture of you.
And if you don’t have a valid photo ID, you can bring a birth certificate, social security card, or proof of citizenship along with proof of your current address, like a utility bill in your name.
You can also apply for an ID card at your state or county’s DMV if you don’t have a valid ID before approaching a lender for a loan.
3. Social security number
Although you don’t need to bring your social security card, you’ll just need to know your eleven digit number.
This is the first question you’ll fill out on your loan paperwork. Your lenders will be able to pull the right credit and background information on you with your social security number.
Not having your social security number or submitting the wrong number will delay the loan application process altogether.
So if you’ve misplaced it, forgotten it, or can’t find it, apply for a duplication social security card and number ASAP to expedite the loan application process.
4. Employment and income verification
After filling out your personal information, you’ll be required to fill in your income and employer information on your loan paperwork.
Most banks, especially those giving out unsecured lines of personal loans, require employment and income verification in the form of contact information and pay stubs.
Pay stubs, or pay records, show how much you have made, the taxes that were taken out, and the hours you have worked during that pay period. If you receive a paper check each payday, it may be attached to your physical paycheck.
Or, if you receive your paychecks via direct deposit, you may need to go online to find your paystub. Many companies have now set up online portals or websites where you sign in to print or download your copy.
If you’re still unsure about how to get income verification, contact your Human Resources representative. They may be able to get you a copy quickly, or verify your employment with the lender.
And if you’re self-employed or own your own business, bring along your 1099 statements, proof of contracts from long-term clients, or signed balance sheets from your accountant for income verification.
Your lender may require additional employment or income information as well. Be sure to ask exactly what they’ll need before applying for a loan.
5. Recent tax documents
Not all personal loan paperwork will require you to show your recent tax documents. However, it’s still a good, proactive measure to bring them along with. Tax documents from that last two to three years should be sufficient.
Have on hand your W-2 forms from your past and current employers, or 1099 profit and loss statements if you’re self-employed or own your own business. Bring along your complete federal tax returns as well.
If you need additional copies of your W-2s, contact your employers if it’s been a year or less with your social security number.
And if it’s been more than a year or the company is no longer in business, you can also request a copy from the Internal Revenue Service (IRS) for a fee using form 4506.
Both processes for requesting W-2s can take up to 75 days, so be sure to ask as soon as possible.
You can also get copies of previous tax returns from your accountant or online filing system like Turbotax for free, or for a small fee.
And if you are still not able to get copies, the IRS can help. You can fill out a request form online (or via mail) to receive your federal return transcripts from a selected year.
6. Bank account and asset information
You may need to have your bank account information handy when you are filling out your loan paperwork. Your checkbook can help you fill in the blanks for your routing and checking number.
You should also be aware of the balances in each of your accounts, such as savings, retirement, or investment accounts. These financial assets may help you look more attractive to a lender who wants to see that you have the means to pay your debts.
Most lenders will ask for an accurate ballpark estimate of money in your accounts, and the name of your bank. However, having a copy of your most recent bank statements to show the lender can only help your chances of getting loan approval.
7. Payment obligations
On the flip side of your assets are your financial obligations. These may include how much of your income goes towards your mortgage each month. Or, how much you pay for child or spousal support.
Lenders may also ask in their loan paperwork about secured debt, such as auto loans or student loans. They’re interested in getting a holistic view of your budget each month.
Like assets, you may not be required to bring in actual proof. But, it’s good to have them on hand just in case, so you can be as accurate as possible. Even a print out of a monthly statement can save you some time when you’re filling out your information.
Prepare the right documents for loan paperwork
Whatever the reason you need a personal loan, you’ll want to be prepared for the lengthy loan paperwork.
By having essential documents such as your photo ID, previous tax forms, and contact information for your employers or banks, you can expedite the process and get money in your hand much more quickly.
Interested in a personal loan?Here are the top personal loan lenders of 2020!
|Lender||APR Range||Loan Amount|
|5.99% – 19.16%1||$5,000 - $100,000|
|8.69% – 35.99%||$1,000 - $50,000|
|7.99% – 35.97%*||$1,000 - $35,000|
|99.00% – 199.00%2||$500 - $4,000|
|5.99% – 24.99%3||$5,000 - $35,000|
|7.99% – 29.99%4||$7,500 - $40,000|
|7.99% – 20.88%5||$5,000 - $50,000|
|9.99% – 35.99%6||$2,000 - $25,000|
|10.68% – 35.89%7||$1,000 - $40,000|
|9.95% – 35.99%8||$2,000 - $35,000|
|1 Includes AutoPay discount. Important Disclosures for SoFi. |
2 Includes AutoPay discount. Important Disclosures for Opploans.
Direct Deposit required for payroll.
Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.
3 Includes AutoPay discount. Important Disclosures for Payoff.
4 Important Disclosures for FreedomPlus.
5 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
6 Important Disclosures for LendingPoint.
7 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 10.68% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 9.56% and a 5.00% origination fee of $300 for an APR of 13.11%. In this example, you will receive $5,700 and will make 36 monthly payments of $192.37. The total amount repayable will be $6,925.32. Your APR will be determined based on your credit at time of application. The origination fee ranges from 2% to 6% (average is 4.86% as of 7/1/2019 – 9/30/2019). In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,001 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
8 Important Disclosures for Avant.
*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.
**Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30.
Based on the responses from 11,574 customers in a survey of 210,584 newly funded customers, conducted from 1 Feb 2018 – 1 Aug 2019 95.05% of customers stated that they were either extremely satisfied or satisfied with Avant. 4/5 Customers would recommend us. Avant branded credit products are issued by WebBank, member FDIC.
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
Personal loans made through Upgrade feature APRs of 7.99%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor. Personal loans issued by Upgrade’s lending partners. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/.