What do I need to get a personal loan?
When getting a loan there are different pieces of information that are required in order to prove eligibility for a loan. First and foremost, personal information is always necessary to start the process of applying for a loan. The information will include your name, address, phone number, day of birth, social security number, and a picture id. That along with information on your income such as your employer’s name, phone number, your duration of employment, your monthly salary along with any other form of income you may receive, and expenses would be required.
To ensure your identification and information are not fabricated in any way certain articles of paperwork will be needed such as proof of income. Other necessary items would be a bill or letter addressed to your current address and bank statements including up to thirty transactions to show what income you do receive and how much of it is commonly used.
Sometimes, but not always insurance companies will ask for collateral. Anything in your possession that holds value would suffice. Examples are your car, home, boat, even personal possessions such as jewelry can be used just as long as it has monetary value.
Why do I need it?
Information on your income is necessary because the company you are requesting a loan from need to be sure that with your income and debts you will not overdraw. Being overdrawn means that with the inclusion of a loan you will no longer have the income to pay back the company that you are applying to. This is undesirable and they wish not to put you in debt with their assistance, if you will be overdrawn, then you will not be approved.
Bank statements and proof of income are used to show how much you use the money you earn to give a better example of the amount that you will be able to pay off. Bills or letters addressed to you are proving that the address you had given is in fact your residence. If collateral is requested, it’s to provide insurance. Several items of equal or greater value will be put up as a sign of intention to pay. If you can no longer pay your debt, the item you put up for collateral will be taken as payment instead, but not every company requests collateral.
Every loan company is different and each will have their own requirements in order for you to apply and be approved. Willow Loans can help you find a loan company that is right for you and are always willing to help.
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When applying for a loan, lenders will look at your credit score to determine whether or not you can afford the repayments. Find out yours for free today.