In almost all cases, individuals are not able to apply for any type of loan without providing some information that would qualify as having collateral for the lender.  Personal loans are no different from any other loan.  Different establishments and lenders will have varying requirements and regulations for loan applicants. 

These rules will determine what an individual needs to bring to the lending firm when they apply for the loan.  Personal loans can differ when it comes to collateral depending on what the lender feels is appropriate.  If a person has less attractive credit record, they will likely face penalties from the establishment in order for the lender to make sure that the applicant will not be a great liability to the lender. 

When a person can prove accountability for the money they will be borrowing, the lender will likely work with the person to get them the money they need.  Identification needs to be proven through a photo identification card, such as a driver's license, passport or government identification card, as does a person's employment.  This is done through the submission of the individual's most recent paycheck stub.  Lastly, the individual will need to illustrate that they are not going to be a liability.  A co-signer is someone who signs a loan with the person needing money, which states that if the recipient of the loan is unable to pay their loan, the co-signer will assume responsibility for repayment.  There are some people who will need a co-signer on their loan, but it is not, in the strictest sense, a requirement. 

Individuals with bad credit or those who have a lot of money already borrowed are candidates that may need a co-signer for a personal loan.  However, this will also depend on the type of loan that the individual is applying for and who they are trying to borrow money from at that time.  Payday loans are short-term loans meant to assist individuals who are in need of money on an immediate, but not long-term, basis.  Most PayDay loan establishments do not require a co-signer, nor do they run a credit check on the applicant.  This is in contrast to many of the personal loan lenders which also function as banks.  Bank lenders, in addition to some other lenders, will require more collateral from their applicant based on their credit, indebtedness, employment and wages.  These are all attributed that these lenders will review.  Even at these locations, a co-signer is not necessarily needed and will be discussed on a case by case basis with the individual.