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A personal loan application can ask for a wide range of data to support the applicant. Some lenders may ask for supporting paperwork and documentation to back up claims made on the application, while others will accept the claims on the application at face value, under the assumption that falsifications 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 can cause a temporary decline in someone's credit score.
Usually, a personal loan application starts with basic demographic information, including the name of the applicant, the address, and basic contact information. If there will be a cosigner, this information will need to be provided for him or her as well. The application typically asks how long the borrower has been at the present address, whether or not the home is owned, and what the monthly rent or mortgage payment is. Personal loans may also ask for 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 over the last several years. They also ask where the applicant is employed, how long he or she has 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 the contact information of a supervisor, and for employment history if the applicant hasn't been at his or her present job very long.
Financial obligations are also of concern to lenders, with a typical application asking how much debt the borrower carriers, and what the monthly payments on that debt are. Information about assets such as cash in checking or savings, personal vehicles, and equity in a home is also requested on a personal loan application, to create a complete financial picture of the applicant. Applicants may also be asked to list references.
The application may also ask how much the applicant wants to borrow. A personal loan application also includes a disclosure statement discussing potential interest rates, finance charges, and other important information. It is key to review this, as the applicant agrees to these terms by signing the application. If a personal loan seems to come with bad terms, the applicant should look elsewhere, rather than committing to a loan with unfavorable terms which may make the loan difficult to service or pay off.
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