Required Documents for Personal Loan in USA

A personal loan is unsecured borrowed money, from a bank, credit union, or online lenders, by non- US citizens or resident aliens in U.S. Unsecured personal loan is not backed by a car or house. Even persons having bad credit score can apply for personal loan on low interest rate. For this purpose, personal loan applicant requires a list of documents. These supportive documents increase the chances of approval of personal loan.

The amount of personal loan ranges from $1,000 to more than $100,000. This amount is to be pay backed in fixed monthly payments. Applicant has to repay personal loan over the period of two to five years.

Either you are researching about low interest personal loan lenders or going to submit your personal loan application, it is better to know what documents are needed to apply for a personal loan. If you work on the following, it will definitely increase your chances for approval of personal loan.

What Documents are needed for Personal Loan?

Personal loans do not require collateral such as a house or car. So it is difficult for a non-U.S resident in U.S. to qualify for personal loan.

International lenders, banks and financial institutions have strict eligibility criteria for personal loan. In USA, eligibility criteria are much stricter for non U.S. residents or alien residents.

Here is the list of documents and general requirements for non – U.S. citizens across U.S.

These Documents can be categorized as

A: Identification Documents

B: Financial Details

C: Credit card report

Detail of most noteworthy documents is given below. Make a check list of following documents:

A: Identification Documents

Formal processing of personal loan demands a series of documents which help in identification process of the applicant. Hence the most important identification documents are:

  • Passport of applicant
  • Driver’s license
  • State ID or Social Security card
  • Your Birth Certificate; applicant must be Eighteen years of age or older
  • Certificate of Citizenship
  • Utility bills
  • Military ID
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B: Financial Details

Personal loan lenders require following information and details for verification of your Income.

  • Last 3 months Bank statement
  • Salary slips for last 3 months and tax returns
  • If you are self employed, you have to provide income proof, audited financial report for the last two years. You also need  some supplementary documents like;
    • Proof of office ownership and address
    • Provide supportive document proving continuity of income
    • Tax returns from the last two years

C: Credit card report

Application form may require information regarding your debt, liabilities and assets. If your credit score is strong then you have better chances of approval of personal loan on lower interest rate. Credit card scores generally categories as follows:

Sr. Credit Card Ranking Credit Card Score
1 Excellent 720 and higher
2 Good 690-719
3 Fair or average 630-689
4 Bad 300-629

It is not possible for you as non residents to provide a two year credit history with valid credit score within U.S. or may be you have bad credit report. But good news is you still can apply for a loan with bad credit score. In this case, you will need nontraditional credit reference to increase the chances of approval of personal loan. For the reason that, lenders will need the following nontraditional credit references:

  • Proof of additional source of income and working in U.S. for the duration of at least three years
  • Payment record of your current rent or mortgage expenses
  • Non-payroll-deducted medical bills, life insurance and auto insurance
  • School tuition charges
  • Paid Utility bills
  • Add a co-signer in your application. This will add weight age to your request for loan

Tips to speed up the application process

Once you have researched best lenders in USA. And finalize the lender who matches best with your need of loan and repayment plan. Finally, the next step is to apply formally for personal loan. Following three steps will speed up your application process.

  • Make a check list of required documents before you start. Before you start your online application, first of all make everything organized. Furthermore check the complete list of needed documents. It will save your time, and as a result will decrease the chances of missing any important information, listed on site of lenders.
  • Have a Scanned copy of all your documents. It is certainly a good idea to Keep Electronic copy of your important documents. Consequently, it makes easy to complete online application. With a click, you can open the folder of scanned documents. And then attach the file of required document with online application form.
  • Start now, finish later.While applying online, if you don’t have everything in hand. Don’t get panic. Just use “save and complete later” function offered on most online application forms.
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So if you know what documents you’ll need. you can easily complete your loan application. Now compare lenders and apply for personal loan.

The lender will check your credit score which may knock few points off from your credit score. Finally, when you qualify for personal loan, you will receive your funds within a week according to the lender’s term.

Furthermore personal loan consolidate debt, improve your credit score and cover unexpected costs.

But before taking personal loan, it is even more important to think thing over and over. And then make a final decision. Find the best lenders who offer lowest interest rates. Be sure that you are borrowing only what you need and be punctual with your repayments.

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