Payday loans are essentially short-term cash advances that you can get during emergencies and repay once you receive your paycheck. However, you may need to pay a higher rate of interest on them. At the same time, they can be life-savers because almost anyone can get them. In fact, you may even be able to get one with bad credit. These loans are designed to be easy and quick, with the requirements being minimal in number. There is no need to collect multiple documents and paperwork to get them approved. The best part is that you can even find a website that provides the best online pay day loans with no faxing and minimal paperwork. However, there are some basic criteria that you must fulfill for easy approval.
Basic criteria for payday loans online
Since there is less documentation involved, getting a payday loan is easier as compared to getting other types of loans. However, there are some regulations that govern payday loans and you need to follow them to get approval, whether you apply online or otherwise. The best thing to do is to be aware of all the requirements that you need to fulfill before you apply and ensure that you adhere to them. Even though there is not much that you need to do, here are some basic criteria that you must meet to qualify for a payday loan in the first place.
- The applicant should be a US citizen
- The applicant should be of a minimum age of 18 years
- The applicant should have a verifiable physical address (with a phone or utility bill)
- The applicant should give proof of regular employment and income
- The applicant should have valid savings or checking account in a bank
Once you are sure that you are eligible with respect to these requirements, you can go ahead and apply for a payday loan. The entire process can be as quick as just 15 minutes if you meet all of the essential requirements. Once the lender is satisfied with your profile, you will have to write a check that includes the loan amount along with the lending fee. The lender gets the check and can hold onto it until a predetermined due date and you have to repay them at that date. Everything sounds simple with payday loans but you need to know them better because these are liabilities after all.
How to ensure that you match the lending criteria?
Now that you understand the essential requirements for getting approval for a payday loan, you can take certain steps to ensure that you match them. A little extra effort gives you better chances of getting the cash you need in an emergency.
Meet the basic criteria: Of course, you will have to meet the basic criteria if you want to qualify in the first place. This means that you have to be a US citizen and more than 18 years of age, which are the factors you cannot control. Further, no credit provider will be willing to give you a loan without proof that you have regular earning and a valid bank account to draw a check. So it is mandatory to fulfill the basic criteria to start with before you apply for a payday loan.
Provide honest and accurate information: Though this is not an essential aspect of getting a payday loan, you should still be honest and accurate with every single piece of information you provide with your application. From your employment status to monthly income, and other aspects, report every fact as truth. Having proof to validate these facts is a plus.
Look for options online: It is a good idea to compare your options as you will probably find multiple online lenders willing to provide loans at their own terms and rates. The benefit of choosing an online lender is that their process is much faster and simpler as compared to conventional lenders. By doing so, you can get a loan in minutes and with zero hassles, all in a few clicks.
Don’t worry about your credit score
You may be fulfilling the basic requirements for getting a payday loan but what if you have a bad credit score? Do you still expect to get an approval or are there chances that your application will be declined? Payday lenders typically run some form of credit verification checks. While some may do traditional credit checks, others can verify your creditworthiness on the basis of your ability to repay (such as considering your regular monthly income). Once again, approaching an online lender is the best way to get a payday loan because they offer bad credit payday loans as well.
Be sure that you can afford the loan: However dire your need may be, you should be sure that you can afford the loan. After all, payday loans require you to pay a considerable interest amount and you should be able to pay it back. Have a close look at your finances and calculate whether you will be able to repay the loan plus interest in the subsequent month after fulfilling your monthly expenditure. A good financial position shows your creditworthiness, which the lender may consider for approving your loan even if you have bad credit.
Have a valid reason to take a loan: While you must be in a position to pay back your payday loan, there should also be a valid reason for taking it in the first place. For example, you will definitely need one if there is a medical emergency in the family. But applying for a payday loan to arrange funds for a holiday does not make sense. So you must be sure that you have a good reason to get a loan and pay interest even for the short term.
Remember that just because payday loans are easier to get does not mean that you should take them frivolously. Responsible borrowing and timely repayments are as significant with them as they are with conventional long-term loans. So you should make sure that you match all the essential requirements and additional criteria for getting them. However simple these requirements may seem, they are still important.