6 Things You Need When Applying for a Personal Loan

April 12, 2019

Life can come at us in unexpected ways, and there’s nothing worse than being stuck in a situation because of financial constraints. Fortunately, loans can lend a helping hand and empower us to focus on what matters most without worrying about immediate finances. As it currently stands, 10.8% of Americans took out a personal loan in 2018, making that an 11% increase from 2017, proving that you are not alone.

We understand that the beginning stages of the loan application can be intimidating, but whether you’re applying online or in-person, it’s vital to have the proper documentation with you to make the process as seamless as possible. We’ve provided you with the 6 necessary documents and items to have when applying for a loan.

1. Proof of residence

Typically, a utility bill is the easiest way to prove residence. Most lenders will require that this be no older than three months. Additionally, cell phone bills are not typically accepted.

If you don’t have a utility bill, there are a couple of additional options, such as a lease agreement, bank or credit card statement with your address printed on it (also no older than 3 months), or a letter from your local municipality.

2. Current pay stub or income statement

Most vendors will require proof of income, usually in the form of a recent pay stub or direct deposit statement.

Because collecting a pay stub may not be instantaneous, we recommend giving your employer some notice as to when you will be needing it; allowing them to align it with the next pay period. In some cases, proof of income letters may also work and are also provided by employers.

3. Minimal weekly take-home pay

In some cases, a threshold of weekly take-home pay, such as $300, may be required.

We understand that some employers may not have transitioned into weekly pay schedules. If you’re unsure of your exact take-home pay, using a paycheck calculator can help detail how your paycheck is allocated between you and the government.

4. Valid driver’s license or government-issued identification

When filling out your application, it’s crucial to have your valid identification card with you. If by chance your driver’s license or ID is expired, visit your local DMV to renew it.

Additional options in lieu of a driver’s license or state ID are a passport, birth certificate, certificate of citizenship, or military ID. The acceptance of these alternatives may vary by lender.

5. Last 90 days of bank statements

Many lenders like to review recent bank statements for certain red flags, such as bounced checks or erratic spending habits, which could indicate a bad applicant.

When gathering your last 90 days of bank statements, you have a couple of viable options:

  • Accessing online through your online bank portal
  • Requesting them through your mobile banking app
  • Physically going to a branch – although some banks may charge you a small fee for this

6. Voided check or direct deposit form

A voided check can be generated by writing “void” across a new blank check. Additionally, if you do not have a blank check, your bank can provide you with a few free copies along with a direct deposit form.

With these six items in hand, you should be ready to apply for a personal loan. Typically, the lender will then asses your candidacy and upon final approval, you may receive your funds within a week.

Ready to apply?

At Illinois Lending we help you streamline the application process; no need for long tedious applications. Apply online through our secure portal or submit the necessary documents in person and receive your check the same day. Our low-interest loans are here to help you when you need it the most.

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