Apply For a Personal Loan - Find Out What Is Needed to Complete a Loan Application

Guide to Personal Loans - Page 5

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Apply for a personal loan

So once you have decided on a loan type and lender, it is now down to the actual loan application!

Make sure you have all your personal information handy including your bank account details before you start. Find out from the lender exactly what type of documentation they need from you, in most cases all lenders will require you to:

provide some form of identification
provide proof of your home address (up to the previous 3 years)
provide evidence of your income and/or career history
set up a Direct Debit for your regular payments.

As part of the application process lenders will also check your credit score, this is a score that is given to you based on your past credit history. If you want to find out what your credit score is for yourself, you can do this at www.experian.co.uk

An important thing to remember is to only make one loan application at a time as it can adversely effect your credit score if you have multiple applications being checked at the same time.

In addition to the general application requirements above, the table below outlines what to expect for different types of lenders:

Apply for a personal loan via...	What to expect...
High Street Banks, Building Societies and Finance Companies	After making an appointment, a specialist loans advisor will take you through the application process step by step. You may get a decision on the spot but it can take 24 hours.
Telephone	When you make the phone call your information will be taken over a recorded call, a paper copy of the application will then be forwarded to you for signing. You may get a decision over the phone, but more likely will need to wait until the signed form has been returned.
Online Loan Site	You can compare lenders in your own time online and then use their online application tools and forms, some online lenders promise instant decisions. Secure websites have a yellow padlock or key icon in the bottom right-hand corner of the page.
Loan Broker	After an initial meeting, email or phone call the loan broker will search the market for the best deal for you and usually assist with the application. You may incur a charge either up front or one added to your monthly repayment. It is important that you know exactly how much this is. Also check whether the broker is tied to particular lenders or whether they are independent as this may affect the type of offers they provide.

Once the lender has all the information they require, including your signature confirming acceptance of the loan terms, the loan amount will be credited to your bank account sometimes within 24 hours.

Remember to keep copies of the loan documents you have signed and any related loan repayment protection insurance documents in a safe place for future reference.

Make a note of the date when the first repayment is due and check your Direct Debit is working to avoid late payment charges. Ensure you make all subsequent repayments on time to avoid ongoing penalty charges and ensure your credit rating won't be negatively affected.

Download the Personal Loan PDF Guide here - see our other free PDF guides here

Guide Contents

What is a personal loan?
Managing your loan
Types of personal loans
Find a loan that suits you
Apply for a personal loan
Frequently asked questions
Where can I go to get more personal loan help?

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