If you have a sudden expense or you’re struggling to cover bills before you receive your paycheck, you might apply for a loan. However, bank loan applications can be time-consuming, and you might need a quicker solution in an emergency.
Fortunately, online loans may come in handy. You could apply from your living room in a few minutes and sometimes receive funds on the same day. Having the following required documents in hand can help the application process go smoothly:
Government-issued photo ID
Before lenders can offer you a loan, they must verify your identity. To do that, they typically require a government-issued photo ID like a driver’s license, a state ID, or a passport. Photo IDs issued by non-government entities like universities and workplaces aren’t usually adequate to prove your identity.
A second form of ID
While some lenders accept a government-issued ID alone, some may require an additional form of ID to verify your identity. Examples may include a bank statement, a birth certificate, a certificate of citizenship, or a Social Security card. Even if you don’t have to make a copy of your Social Security card, you may still need to provide your Social Security number as part of your application.
Bank account information
After approval for an online loan, you may receive funds right away. Lenders need your bank account information — usually your account and routing numbers — to ensure they send your loan to the right person. Documentation like your bank statement should include both numbers. You may be able to find this information on your banking app or online account.
Many online lenders consider several factors when evaluating your loan eligibility, including your credit score, employment, and income. Before they lend to you, they want to ensure that you have a high likelihood of repaying the loan, so they must confirm that you have a consistent income. Pay stubs or tax returns should do the trick for most people with full-time or part-time jobs. Contractors may have to provide bank statements with deposits that indicate an upwards trend or 1099s. Even if you don’t have great credit, a reliable income stream could help you secure an online loan.
Proof of address
Sometimes, lenders need to determine that you have a stable living situation to comply with state laws or confirm a certain degree of financial stability. A driver’s license or state ID may suffice for some lenders. Still, others may request additional documentation, like a utility bill, a voter registration card, or a lease agreement.
The bottom line
Online loans can provide you with convenient, quick money when you’re in a financial pinch. Lenders will request paperwork to verify your identity, protect your information, and confirm that you have enough income to repay your loan. Each loan provider may ask for different documents and information, so it’s smart to check their requirements before you begin your application. That way, you can get the cash you need when you need it without hitting any snags due to missing documents.