Before you apply for a personal loan, it is important to know your likelihood of being approved. Most lenders require a credit score of 560 to get an unsecured personal loan. If your credit score is below 560, you may be required to put up collateral, which is valuable property such as a vehicle or home, to secure the loan. Borrowers with credit scores above 740 typically get the best interest rates, so a higher credit score is always better. Understanding how your credit score works is essential to ensuring a prosperous future.
Your lender will obtain your credit score, so you don’t have to provide it.
What Documents Do I Need to Apply for a Personal Loan?
Once you’ve made the decision to apply for a personal loan, the application process may be easier than you think. Your lender will require you to complete an application and submit documents that prove your identity, your address, and your income.
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Complete an Application
All lenders require applicants to complete an application. If you are working with an online lender, the application process will be entirely online, so you will need access to a computer, an internet connection, and digital copies of all documentation required. Many local institutions allow you to complete the application for a personal loan in person or online. Working with a loan professional may be easier for some people, but you should do what is most comfortable for you.
Every lender has its own application, but all ask for the same basic information:
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Full name of borrower(s)
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Contact information
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Date of birth
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Social Security number
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Address history
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Employer and monthly income
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Monthly bills
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Debt obligations
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Submit Proof of Identity
Lending institutions will want to verify your identity before approving your application. Most lenders expect you to present two forms of identification from the following options:
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Birth certificate
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Driver’s license
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Social Security card
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Military ID
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Other state-issued ID
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Passport
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Certificate of citizenship
If you are applying online, a clear digital picture or pdf file will likely be required. You can use a smartphone, tablet, or scanner to create a digital file.
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Submit Proof of Address
Most lenders will also want proof of your current address. Some may require you to present additional documentation that shows how long you have lived there.
Be prepared to bring or send one of the following documents with your application:
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Utility bill
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Bank or credit card statement
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Lease or rental agreement
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Mortgage statement
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Proof of homeowner’s insurance
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Property tax receipt
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Submit Employer and Income Verification
If you qualify for an unsecured personal loan, your employer will want to know that you have a steady income.
Regular employees will need to prove their income with one or two of the following documents:
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Employer’s contact information
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Pay stubs
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Bank statements
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Tax returns
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W-2s
Self-employed borrowers may be required to submit any or all of the following documents:
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Bank statements
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1099s for the past 2 years
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Tax returns for the past 2 years
Making the decision to get a personal loan should not be taken lightly. Once you’ve gotten over that hurdle, AMG Finance makes it easy to apply for a personal loan online or in person.
