How to Correct Errors on Your Personal Loan Application

A personal loan application requires information regarding your history of debt, your ability to pay and your plans for the funds. In all cases, errors in this information could affect the way your loan is processed and funded. As such, it is key to correct these errors before the funds have been provided. If you allow the errors to remain on the application for too long, your loan may be issued in response to inaccurate information, and this can cause more troubles down the line.

Identify Errors Early

The key to successfully resolving any application error is to catch it early. For this reason, you should double check all of your application materials before submitting them. Lenders will usually identify errors in the process of funding the loan. However, if a lender does identify the error, you may be disqualified from receiving funds. It is far better to identify the problems yourself prior to actually submitting the application or allowing it to be processed.

Amend Errors when Possible

If you catch errors early, you can possibly amend the application without too much trouble. The process of amending an application basically means submitting a written request to change some information. For example, you can amend your income information if you failed to report income from a separate job. You can amend your references if you provided the wrong phone number for a previous landlord. However, if the information is crucial to the funding of the loan, such as an error in your social security number, then it is better to simply withdraw the application and start fresh.

Withdraw Application when Needed

You should be vigilant of errors that may be interpreted as fraud. This mostly means financial information. For example, some borrowers defraud lenders by providing false names or addresses. Other report incomes from jobs they do not currently possess. With increases in lender vigilance after the mortgage meltdown of 2007, there is a lower chance of successfully filing fraudulently for a loan. If you mistakenly do so, you can still be held liable for attempted fraud. Immediately contact your lender to stop the loan process. Ask to withdraw the application in its entirety. Once you do, correct all errors immediately. If you have to withdraw a second time, the lender may grow concerned over your attention to detail and decide not to fund your loan.

Cancel Loan if Necessary

Once a loan has been processed, it becomes much harder to make changes to information. Small changes that would be subject to alteration regardless of error, such as a change in your phone number, may be easily changed. Changing your bank account information, for example, would be much harder if not impossible. The lender also made its evaluation and funded your loan based on this information. As a result, you may have to cancel the loan altogether in order to change relevant financial information. Canceling a loan typically can only be done within a very narrow window and before the funds are spent. You may still find penalties, but these can be lower than legal fees if the error is discovered.

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