Do I Qualify
Do I Qualify for a Payday Loan?
A payday loan is a loan that can be available for your short-term cash needs. It is a popular credit system that provides many people with a way to solve most any emergency financial situation. Getting a payday loan has a quick and easy application process with requirements that are uncomplicated, unlike other more traditional loan types. To be eligible for a payday loan you must:
• Have a US citizenship or legal residency in the US
• Be at least 18 years old
• Have been employed for at least 3 to 6 months
• Have a checking or savings account that is active
• Have a net income of at least $800 per month
During the application process, you may request a certain amount to be borrowed; however, there are certain limits to how much can be borrowed. Most approved loan amounts vary anywhere from $500 to $1,000, depending on your monthly income, which is one of the most important factors. It is important to make sure that you only borrow an amount that can be paid back quickly. Payday loans are meant to be short-term. Borrowing responsibly is essential to a good loan experience.
After the application process is done and the loan request forwarded, the lender will determine your eligibility for the loan and the amount requested. Approval or denial is usually made within 24 hours of submission, which makes it very convenient for those who are in need of cash quickly. If approved the borrower will be contacted either through email or by phone, sometimes both, and will be informed that the loan amount will be electronically deposited directly into the specified bank account on the application. The loan payment will also be deducted from the same bank account on the agreed upon due date, usually when the next paycheck is deposited, which is where the term “payday loan” comes from.
There are some loan companies that check your credit report and research to find out of you have filed for bankruptcy or other have negative marks; however, in these hard economic times, many lenders have taken to not checking credit ratings anymore in order to be able to provide financial assistance to more potential customers. That is why payday loans have become a great resource for people who are in dire need of emergency cash but do not qualify for a more traditional bank loan.