Applying for, obtaining, and repaying a loan, also known as installment credit, isn’t easy. But if you familiarize yourself with the lending process, you’ll know how to prepare yourself.

When you’re applying for a loan, your financial situation will probably be under heavier scrutiny than when you’re applying for a credit card — especially since there’s a lot more money at stake. In addition to the criteria that credit card issuers assess, lenders may ask to see current pay stubs and recent income tax returns as evidence of what you earn.

The way in which you handle your income is just as important as the size of your income. That’s why lenders assess your net worth, or the value of the things you own, including cash, securities, and personal property, minus what you owe on your credit cards or other debts. Lenders typically ask you to provide this information in a standard form. You may be asked to provide account numbers and balances for various bank, security, and credit accounts you have.

How can you prove net worth if you’re just starting out financially? Click here for the answer!