Personal loan applications require a range of data, including demographic information, employment history, financial obligations, and assets. Lenders may request documentation, and credit checks may cause a temporary drop in credit scores. Applicants should review the disclosure statement before signing.
A personal loan application can request a wide range of data to support the applicant. Some lenders may request documentation and supporting documentation to support the claims made on the application, while others will accept the claims on the application at face value, on the assumption that forgeries will show up during a credit check. Consumers should be aware that when they apply for personal loans, the lender will check their credit, and this may cause a temporary drop in someone’s credit score.
Typically, a personal loan application begins with basic demographic information, including the applicant’s name, address, and basic contact information. If there will be a cosigner, they must also be provided with this information. The application typically asks how long the borrower has been at the current address, whether or not the home is owned, and what the monthly rent or mortgage payment is. Personal loans may also require proof of identification, such as a driver’s license number or Social Security number.
Some personal loan applications may also ask for a housing history in recent years. They also ask where the applicant is employed, how long they have been working for that employer, what the applicant’s job title is, and how much the applicant earns. A personal loan application may also ask for a supervisor’s contact information and employment history if the applicant has not been at their current job for a long time.
Financial obligations are also a concern for lenders, with a typical request asking what debt borrowers owe and what the monthly payments are on that debt. Information about assets such as cash in checking or savings, personal vehicles, and equity in a home is also requested in a personal loan application to create a complete financial picture of the applicant. Applicants may also be asked to list references.
The app can also ask how much the applicant wants to borrow. A personal loan application also includes a disclosure statement that discusses potential interest rates, finance charges, and other important information. This is key to review as the applicant agrees to these terms by signing the application. If a personal loan appears to have bad terms, the applicant should look elsewhere, rather than commit to a loan with unfavorable terms that may make it difficult to service or repay the loan.
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