When you are borrowing money the most important thing that the lender wants to know is if you are going to pay it back.
The first that they will do is run a credit check on you. They want to find out how much outstanding debt you have; your payment history; and if you’ve had trouble repaying your debts in the past. They will look for red flags; like late payments on your rent or utility bills. They’ll want to know about judgments and bankruptcies. They’ll check to see how often you have requested credit from other places. The want to know you have a credit history.
Once you have passed this road block; they will want to know if you are going to be around to repay the debt. They’ll look into your employment history. The longer you have been on your job; the more stable you appear. Are you married? Married men are more stable than single men. How long have you lived at your current address? If you move frequently there could be a problem; they want to be able to find you easily in case you default.
They’ll want references. They want to know people that they can reach if fall behind in your payments. They want to be able to find you so that they can get their money.
They will also need your driver’s license and social security number so they can verify your identity and run their credit history.
If your credit history or personal history is iffy or looks bad; you still might be able to get the loan. There two ways that this may be possible. The first is that you get a cosigner with an excellent credit history that is willing to sign the loan agreement. A cosigner assumes responsibility for a loan if the person who borrowed the money defaults on the loan. The other way is to back up the loan with collateral.
The places that offer you payday loans take a post-dated check from a verified bank account as collateral against their loans. If you default they send the check to your bank for collection.
There are title loan companies. They take the title of your car as collateral against the loan. If you fail to pay, they can get your car.
There is only one thing a lender wants from you when you take out a personal loan. He wants to be sure to get his money back with interest.