About Qualifying for a Personal Loan

Personal loans allow people to either receive cash and pay it back in fixed monthly payments over a set period of time. These loans can be used to directly pay a doctor for plastic surgery, or can be given to the borrower as a check to use for any purpose he desires. All personal loans have a lender qualification process.

Personal Information

A loan application must be filled out, either online, in-person or over the phone. Personal information such as full name, address history, date of birth and Social Security Number is required.

Employment Information

Employment information is collected and sometimes verified when a person is trying to qualify for a personal loan.

Income and Assets

Qualifying for a personal loan requires proof of income and assets, especially when the applicant has a poor credit history. Some loans can be secured with collateral such as equity in a home.

Credit Check

Almost all personal loans require a credit check to qualify the applicant. Factors considered include amount of debt owed and any late payments on recent or past accounts.

References

Reference information is also collected when qualifying for a personal loan. These people are contacted in the event the borrower does not pay on the loan and cannot be located to discuss repayment.