Photo by Sora Shimazaki
Originally Posted On: http://iquanti.com/
Online loans can be easy to get, especially if you do your research before applying. Even people with less than great credit can get approved when they visit the right websites. There are, however, certain requirements that every borrower must meet.
For instance, you’ll need a bank account for the lender to deposit money into. You’ll also have to verify your identity, so your social security number is usually required, along with some documentation of your income. Here are some of the requirements you’ll need to meet in order to get a quick loan online.
Requirement #1: An Established Bank Account
Online lenders don’t typically send checks in the mail to borrowers. Instead, you can receive your funds in an existing bank account. The payments on your loan will be debited from that same account, so lenders typically want to see an established bank history of at least three months.
Opening a new account immediately prior to applying for an online loan won’t necessarily disqualify you from being approved, but it may slow down the process. To get approved for an online loan as soon as possible, it’s best to use an account you’ve had open for a while.
Requirement #2: Valid Identification
Simply filling out an online form with all your contact information does not verify your identity. Most lenders will ask for your social security number as a way to validate your identity. A copy of your valid state-issued ID or driver’s license may also be requested.
Requirement #3: Income Verification
Can you afford to pay back the money you’re borrowing? Online loans come in a number of different forms, but all lenders want some reassurance that you’ll be able to make your payments on time. Have a copy of recent paystubs and your W2 available when you apply.
With short-term loans, like a paycheck advance loan for instance, a single pay stub may be sufficient, but be prepared by having the past six pay periods available when you fill out your online application. That way, you won’t have to go back and search for those before finalizing your loan request.
Increasing Your Credit Score Can Improve Your Chances
A low credit score does not disqualify you from getting an online loan, but it will limit your options and may cause a delay in the approval process. For fast results and better terms, you can improve your credit score by paying off some credit card debt before applying for a loan.
If you’re taking out an online loan to pay off high interest credit card debt, make sure you check that box on the application, if an option. This is seen as a sensible action by lenders so approval is not difficult, provided you have all the documentation listed above.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.