Do You Qualify for a Payday Loan? What You Need to Know
If you are in need of some cash and fast, a payday loan might be your best solution. To qualify for a payday loan, according to the criteria set forward by the US Government agency, Consumer Financial Protection Bureau, you must be a legal adult and a valid citizen of the United States of America, have a permanent source of income in the country, and have a bank account, preferably one that accepts online transactions for instant money transfer. Other than that, most lenders just require some personal information, basic income details and your account credentials. The details of the requirements are as follows:
Payday Loan Requirements
- Having an employment is not a necessity, but you must have a constant source of income in order to demonstrate your ability to repay the loan.
- You must be a current resident of the same state as the one you are applying your loan application from.
- You must be at least 18 years of age.
- You must not have an ongoing or pending bankruptcy case in court, or be intending to file for bankruptcy in the near future.
- You must not have been a member of any armed forces, either serving or retired, or belong to a defense institute of the United States, be it the Army, Marine Corps, Navy, Air Force, or the Coast Guard, for a period of 90 days or below.
- When applying online, producing a valid Social Security Number or Individual Taxpayer Identification Number is necessary.
- You must have at least a month old checking or saving bank account.
- If applying online, you must be available via phone to verify the application information as necessary.
That’s it. No thorough background checks, no lengthy paperwork, no faxing documents, absolutely no hassles. In most cases, you apply for a payday loan, and have the money in your account within an hour at most. Click here for more info.
Considerations for Payday Loans
Remember that payday loans are not the one stop solution to all your financial problems and there might be other options that may work better for you. Before you begin the application process, always keep the following things in mind:
- A payday loan is a short-term advance to help you out of a financial crisis. It is in no way a method for you to rebuild your credit score, so don’t even try.
- If you are not 100% sure in your ability to pay back the loan at the end of the term period, do not apply for a payday loan.
Make sure that you properly understand the schedule of repayment and are aware of your obligation to abide by it.