5 Online Loan Requirements You Should Know

Loans come in handy whenever you need money. Whether for a down payment on a house, an emergency, or tuition, loans can give you the money you need when you don’t have it.

But to get approved for a loan, you must first meet the necessary requirements imposed by the lender. Lenders use the financial and personal information in these documents to decide whether or not to give you a loan.

Of course, each lender has different requirements, but there are some common denominators you need to know regardless of the lender. Here are five.

Minimum Age Requirement

All loans, online or traditional, require borrowers to be at least 18 years old. That’s because the law considers anyone under 18 to be a minor. And therefore, they’re not legally able to enter into contracts.

Loans are considered legal contracts, so the minimum age requirement is in place to protect minors from taking on too much debt. For one thing, minors usually don’t have the financial capacity to repay a loan.

What’s more, minors are still developing their decision-making skills, so they may not fully understand the terms and conditions of a loan contract. As a result, they could quickly take out a loan they can’t afford or have unfavorable terms.

So if you’re not yet 18 years old, you’ll need to wait a bit longer before you can apply for a loan. In the meantime, start saving up to have the funds ready when you do reach the minimum age requirement.

Proof of Identity

One of the basic requirements for taking out a loan is proof of identity. Lenders want to be sure that you are who you say you are. Typically, you need to present any of the following:

  • social security card
  • birth certificate
  • passport
  • driver’s license
  • state ID card
  • certificate of citizenship

These identifications all have your name, photograph, and other vital information to verify who you claim to be. So, for example, when you apply for loan online with creditninja.com, you’ll need to scan or take a photograph of your identification and upload it.

Proof of Income

Online lenders will also need your proof of income. In addition, they need to be sure that you have the means to repay your loan. And more importantly, they need to protect themselves from fraudsters. After all, no one wants to lend money to someone who can’t pay it back, right?

So, how can you prove your income? For employed applicants, the process is pretty straightforward. You can submit your payslips as proof of income. If you’re self-employed, though, things are a little bit different.

You’ll need to provide income tax returns, 1099s, and bank statements. You can get copies of these documents from the IRS website. Alternatively, you can get them from your accountant or tax preparer.

Proof of Address

The lender will also need to verify your address. Why? Because they need to make sure you live where you say you do. Also, it will help them determine if you have a stable lifestyle.

So, how can you verify your address to a lender? There are a few ways. The most common is through a utility bill, which could be for water, electricity, gas, cable, or even internet service. You can also use a bank statement, lease agreement, or mortgage statement.

Generally, anything that has your name and address on it will work. The key is to make sure it’s dated within the last 30 days.

Credit Score and History

Your credit score and history are also important factors that the lender will consider. They provide insight into your ability to repay a loan.

A high credit score indicates that you’re a responsible borrower who is more likely to repay a loan on time. On the other hand, a poor credit score may demonstrate that you’re a high-risk borrower who’s more likely to default on a loan.

You can get a free copy of your credit report from any major credit bureau or annualcreditreport.com. Be sure to check your credit report for errors and dispute any inaccuracies.

You must know these critical components of your financial profile before applying for a loan. In addition, you can better prepare to receive favorable loan terms and rates by understanding your creditworthiness.


Knowing what requirements you might need before applying for a loan online can help prepare you for the loan application process and avoid stressful surprises. Most importantly, you can boost your approval chances and get the best possible loan terms.

So, if you need extra money and want to take out a loan, ensure to know the basics and understand what is asked of you. Otherwise, you’ll just be wasting your time trying to apply for a loan you’re not even qualified for in the first place.

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