Sometimes in life, you may find yourself caught in financial distress, and while it may not be comforting to take out a loan, doing so may be the only means to save you from imminent financial danger. Here are the things that you should gather to help ensure a successful loan application.
Proof of identity. When applying for a loan, it is important that your identity is verifiable. Any government issued ID with photo or your driver’s license are good examples of accepted Ids.
Proof of residence. Individuals who are living permanently in the same residence for at least three years are more likely to qualify for a loan than those who switch places every now and then. Lenders would want to reach you out in case there are problems and definitely prefer applicants who are not likely to leave their present location. Your copy of recent bills can be sufficient proof to verify your residence.
Proof of income. Creditors need assurance that you are able to afford the repayments of the loan you’re trying to apply for, thus, you need to have a stable source of income. They prefer applicants who have been employed in the same institution for the past few years, earning a stable income rather than those who are contractual employees. Your wage slips can be the best way to prove your income. Depending on your provider, they may require verification with your employer.
Card or bank details. It is also important that you provide a debit card and bank account so that the lender has a means to take your money from. It also adds to the convenience because you won’t have to visit your lender every month just to make repayments.
Collateral. While not always necessary, you might need to submit collateral when applying for a secured loan. This reduces the risk on the creditor’s part and gives them more confidence that you are serious and are willing to pay off the borrowed money. The lender can repossess the said collateral if you default on payments in order to recover the cost of the loan.
Additionally, you have to be of legal age in order to qualify for any loan. All lenders require that you are at least 18 years of age and financially independent.