What documents are needed for a personal loan?

Information you’ll need to complete the application

Before you upload documents, you’ll need to fill out the loan application with basic information about yourself and your finances. This includes:

• Your full name and contact details
• Date of birth
• Social Security number (or tax ID)
• Citizenship status
• Address history
• Income, monthly bills and other debts
• The amount you want to borrow and why
• Your preferred loan term and payment due date

Once you submit this information, your lender will ask for documents to verify that everything is accurate.

» MORE: Best online loans

Proof of identity

You’ll also need to supply proof of identity to get a loan. Most lenders require that you provide two forms of identification, but this can vary by lender.

Accepted documents typically include the following:

• Birth certificate
• Certificate of citizenship
• Driver’s license or state-issued ID
• Military ID
• Passport
• Social Security card

Be sure to capture clear photos with your camera so all text is legible and nothing is blurry.

Proof of income and employment

To show that you can make the monthly payments, you’ll need to provide proof of income and employment. A lender wants to know that you make enough money to repay your loan. This is especially important if you are getting an unsecured loan with no collateral.

Common documents to verify income and employment

You will probably be asked for your employer’s contact information.

You may also need to include income from other sources, like alimony or Social Security. Lenders often ask for your monthly housing costs and other major debts, such as car or credit card payments. You may need to provide payoff information to show the status of each account.

If you have questions about your employment documents, contact your employer’s human resources or payroll contact. If you are self-employed, a tax professional or financial advisor can help guide you through the process based on your situation.

Proof of address

You’ll need to show proof of address and provide your address history. Acceptable documents often include:

• Bank statement
• Utility bill
• Lease or rental agreement
• Mortgage statement
• Proof of home insurance
• Voter registration card
• Proof of car insurance
• Credit card statement

Some lenders may deny your application if you’ve just moved or have a history of frequent address changes.

Bank account information

You’ll also need to provide information about your bank account details to receive the loan funds. This includes your:

• Bank’s name
• Routing number
• Account number

“With some lenders, if a consumer is getting a loan to consolidate and pay off credit card debt, there also is an option to have the lender pay their creditors directly,” said Kyle Enright, president of lending at Achieve. “The funds are sent by ACH. In these cases, the lender often provides some type of interest rate discount on the loan.”

Some lenders may also require you to set up automatic payments for your loan. This helps ensure your payments are made on time.

Additional considerations for loan approval

The following are some additional factors to consider before taking out a personal loan.

Credit score

Your credit score is one of the most important factors a lender will consider when deciding whether to approve your personal loan. A good credit score signals to the lender that you're likely to repay the loan on time.

Some lenders specialize in bad credit loans, but you’ll get the best rates with personal loans for excellent credit. If you have new credit, you may not qualify and may need to take time to build your credit.

Before you apply for a personal loan, check your lender’s minimum credit score requirements to make sure you qualify. You can get a free copy of your credit report at AnnualCreditReport.com to see where you stand.

» COMPARE: How to fix your credit in 9 steps

Debt-to-income ratio

Your debt-to-income (DTI) ratio shows how much of your monthly income is allocated toward debt. This allows the lender to see how much room is left in your budget for your new loan payments.

If you're missing required documents

If you’re missing a required document, like a pay stub or tax form, your lender might still be able to work with you.

“If something’s missing — don’t panic,” deMauriac said. “Contact the lender directly; they may accept alternatives or help you track down what's needed. For example, if you’re newly self-employed, recent invoices or bank deposits may suffice in place of a W-2.”

What to do if your application is denied

If your loan application is denied, the lender must tell you why under the Equal Credit Opportunity Act. “Find out why you were denied,” Enright said. “If an applicant was denied, the lender must provide an adverse action notice. This will provide the reason(s). From there, you can take the appropriate steps before you apply again.”

“A denial wasn’t the end of the road — it was information,” deMauriac said. “Review the reason and ask for specific feedback from the lender on how you can improve to be approved in the future.”

How to improve your chances next time

Even if your application was denied, there are things you can do to make it easier to get a loan next time.

• Ask for a smaller loan: “You can also apply for a smaller amount the next time you apply,” Enright said. “This is less risky to the lender and helps the debt-to-income ratio.”
• Get a cosigner: If a trusted family member or friend can become a cosigner, your odds will improve.
• Look into bad credit loans: You can get a personal loan with bad credit. These loans have higher rates but are easier to qualify for.
• Earn more income: A side hustle like tutoring or driving for a rideshare app can help.
• Check your credit: “A common reason for denial of a personal loan application is credit score,” Enright said. Make your payments on time, keep your credit utilization low and check your credit report for errors. Over time, your score will improve, and you’ll be in a better position to reapply.

» LEARN: How to check your credit score

“Access to capital shouldn’t be a mystery,” deMauriac said. “Whether you're rebuilding or just starting out, the key is to stay proactive, not discouraged. Beware of predatory lenders. Do your due diligence, compare interest rates and terms, and reach out directly to lenders with questions before taking on debt.”