What You Need To Know About Qualifying For Payday Loans
If you are not familiar with the way that payday loans work, these loans are designed to offer applicants a relatively small amount of capital that they can pay back over the course of their next few paychecks. In most cases, these short-term loans are much easier to qualify for than standard personal loans because most payday lenders do not require a credit check. However, this does not mean that everyone who applies for a payday loan will be approved. Continue reading to learn more about what you will need in order to qualify for one of these loans.
Age Requirements
A payday loan agreement is considered a binding legal agreement. Consequently, you will need to meet the minimum age requirements set forth by contract laws in your state. For most people, this will mean being 18 or older at the time you sign your loan documents.
Income Requirements
Payday loans are designed to be paid back in a short period of time. In order to ensure you are able to keep up with your loan payments without defaulting on other financial responsibilities, you will need to demonstrate that you have a reliable income. This income can be derived from a variety of sources including traditional employment, self-employment, settlement payments, or government benefits. While most payday lenders do not have a minimum amount that you must make each month in order to qualify, the amount of your loan will be dependent upon how much you can reasonably pay back within the term of the loan. Consequently, you will find it difficult to secure a larger payday loan if you currently have a minimal amount of income.
Banking Requirements
Since payday lenders do not typically require a credit check before approving a loan application, these lenders help to minimize the risk that you will default on your loan by imposing certain banking requirements. First, you will need to have a valid checking account that has been open for at least a few months. Second, you will need to show proof that your paychecks are being directly deposited into this checking account. Finally, you will need to authorize automatic payments from your checking account to cover the total amount of your loan plus any applicable fees. If you are not able to meet all three of these requirements, you will need to take steps to fulfill these requirements before you will be able to secure a payday loan.
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