It’s not unusual to run out of cash before payday. So, taking out a payday loan always seems like a great way of solving your urgent needs. But what exactly are these payday loans? They can simply be defined as short-term cash advances that you could use to fill in the dead air left just before your payday arrives. Ideally, they are availed for urgent cash demand purposes and emergencies. And in case you’re wondering about the repayment, it always comes from the next payday.
You should, however, not forget that payday loans are meant for high-priority needs when your pockets run dry, unexpectedly or not. So if you’ve been contemplating about how to apply for one, we should let you know that there are a few requirements that you’ll have to meet if you request is to be approved. Even though they aren’t so many and are normally easy to meet, several requests usually fall through because the applicants overlook vital information during their first application attempt.
Here’s the list of five basic payday loan qualifications:
1. Valid identification card
The lender will want to be convinced that you desperately need the cash and you’re not just looking to scam them. That’s why it’s imperative you provide your personal information as this will allow them to recognize you and the application you made. The information you provide has to be verified. If you have a Government-issued ID, use it. Lenders prefer using such documents because they have the applicant’s photograph on them. And don’t forget about the social security number as well.
2. Age requirements
Depending on the state regulations, the payday loan lender might or might not have age requirements. For example, in the United States and Australia, only those who have attained an age of 18 years are eligible. In Singapore, 21 is the minimum age.
3. Accessible contact number
In addition to the identification cards, you’ll also have to give the payday loan lender your current residential address and an operational phone number. Expect a phone call or SMS from him or her seeking clarification on some of the information you provided, or to respond to a few questions before approval. Check out the Speedy Cash website if you want more resources.
4. Active bank account
Most payday loan lenders will ask you for your active bank account details to deposit the cash directly. An active bank account will enable them work on the processed amount receipt and the repayment. The other good thing about payday loans is the fact that they don’t require collateral. An automatic deposit permission form or a check will serve as a backup if you don’t pay them back before the exact due date. Since the lender already has your bank details, they can make a withdrawal.
5. Proof of income
It’s a payday loan. The hint is already in its name. There’s no way you can have a payday if you’re not employed. So they’ll need proof that you have a steady source of income. You can tell them about your business or the job you work for. Proof of income is the only assurance you’ll be able to pay back the loan.
Now that you know about all the basic requirements, gather your documents and go make your payday loan application.