Payday loans stand out from the rest of the credit options. These short-term unsecured small cash loans represent a very convenient and unique alternative for many borrowers, and especially for the ones who has little chance to be approved for bank loan. The benefits of this non-bank lending are numerous. Payday lenders offer loans to almost everyone with very rare exceptions and they also pay no attention to a person’s credit score. Few requirements, easy application process as well as absence of credit checks – all of these factors speak to the favor of payday lending and explain their popularity. One of the things that many borrowers fear is approval. With payday lenders this application process step is simple and easy and is much more beneficial. The growing consumer interest as well popularity of this credit option is explained by the fact that there is no restraint in getting approval; which is a rarity for any credit business.
All the banks are very fastidious about their potential borrowers. They will never approve one for a small loan, let alone a large one without being sure that the aforementioned borrower has got a good credit history. Credit score is a corner stone for so many people willing to get a credit – due to some sad reasons they are considered non-creditworthy and are refused the cash they sometimes need so badly. With payday lenders it is never the case. However, it is always wise to make sure beforehand that you meet payday lender requirements before making an application. One should keep in mind that most lenders accept applications from borrowers
- who are above 18 years old;
- the U.S. citizen or a resident,
- has got permanent income source,
- is employed and has got a checking account.
These are the basic requirements; however, it is also possible that a lender may need to request additional information. One should also keep in mind that inability to meet these particular requirements may result in declining the application. Bad credit, however, never does. It is possible to get refusal if you have multiple loans that are not repaid yet, it is also possible to get refusal if you do not have income at all. Payday lenders are not interested in credit scores; however, they are interested in a person’s creditworthiness and their money to be repaid in due time and good manner. Absence of an active checking account can also become a complication as all the payday loan transactions are online and electronic and the money is transferred to a person’s checking account and withdrawn on the day of the repayment automatically – it is mandatory to have such an account.
There are payday loan stores that work with deferred paychecks that grant cash and not online bank transfers; however, they require a customer’s presence in the store – which is not always convenient. When applying for a payday loan, make sure you checked all the information twice and that it is correct and up to date. The cases when lenders refuse borrowers with loans are rare but they happen from time to time. That is why check your information as well as whether you meet the requirements in advance.