Payday Loan Requirements07/13/2019
Life is often a series of unexpected events, and sometimes we all may need a little economic assistant. Additional funds might be required for emergencies ranging from insurance payments, car payments, unexpected school fees for your children, paying utility bills, emergency funds to help a friend or family member. There is no shortage of situations that our complicated lives may present at any given time, and the need for additional funds is the only solution.
What Is a Payday Loan?
A payday is a loan typically reserved for short-term usage and is usually a small amount of money borrowed for a short period, two to four weeks or until your next paycheck is received. The loan is an unsecured one, and it is linked to the person who is borrowing the money pay date. Payday loans are sometimes called a cash advance.
What is required to obtain a payday loan?
Unlike secured loans from a bank, there is no credit check required to obtain a payday loan.
Most payday loan companies will require:
- A bank account that is in good standing.
- A valid social security number or a personal taxpayer identification number.
- A steady source of reliable income that is directly deposited in your bank account.
- Must be 18 years or older.
Payday loan companies require all applicants to have a valid bank account that is good standing, and your paychecks are directly deposited in that account. Most payday loan companies will need you to send them bank statements for the last three months, this is to verify you don’t have other payday loans, your paychecks are deposited regularly in your account, and your account is not in the negative. Some payday loan companies will request the borrower give them access to there bank account remotely via various online tools.
Valid Social Number or a Personal Taxpayer Identification Number
There is no credit check required to obtain a payday successfully; however, you are required to give the leading company your social security number or taxpayer-identification number to verify you are a citizen of the United States and for collection purposes if you default on the loan.
Steady Source of Income
Payday loans are dependent on your ability to prove you have a stable source of income. In some cases, usually, if you apply online, the borrowed funds will be deposited in the bank account you receive your paycheck. If you apply for a payday loan in a storefront, you may be required to bring in four to six paychecks, and you may be given the option of receiving your credit in the form of a physical check or have the funds directly deposited in your bank account.
In the United States, you must be 18 years or older to legally sign a contract, because the contract for a payday is legally-binding. Individuals under 18 are minors and can not legally sign an agreement.
There many easy way to get a payday loan. Many companies allow you to apply for a loan online and complete the entire process in less than ten minutes. Some payday lenders require a face-to-face meeting in the store, and all necessary documents to complete the process must be brought in during this meeting. Payday loans are an excellent alternative for individuals who can not obtain a secured loan from a bank, but due to the high interest, it is the best to pay the loan back on your next paycheck.