How To Qualify For A Payday Loan

For the past few years, the poor economy has led to a high rate of unemployment and an even higher rate of underemployment.  Because of this, many people have had to rely on unsecured debt to make their monthly financial obligations and have spent all of their savings to make it through the tough times.  Unfortunately, many people are still struggling and running out of financial options.  At the same time, traditional banks have drastically cut back on their personal lending, which has made it nearly impossible to get an unsecured loan.

While traditional personal loans may no longer be an option for most people, getting payday loans is a great option for someone looking for a short-term and unsecured loan to either pay some bills or for a financial emergency.  Those that are wondering how to qualify for a payday loan will need to meet a few different criteria in order to qualify.

In order to qualify for a payday loan, all people will need to have a recurring paycheck.  The amount of money that you can borrow on a payday loan is dependent on the size of the paycheck.  Lenders will typically provide you a loan no more than the amount of money that you receive each pay period.  In order to qualify for the loan, you will need to be able to prove the payday loan provider that you receive a recurring source of income by showing at least your past two pay stubs.

Another qualification needed to get a payday loan is that you will have to have a current checking account, which can accept direct deposit or withdrawal.  In most cases, payday lenders will be able to electronically wire the loan proceeds directly into your account.  When the time comes to pay back the loan, the lender will have the right to automatically withdraw the funds from your account.  In most situations, the bank will also prefer that you have a direct deposit set up from your employer, which will prevent the risk that your account will be overdrawn when it is time to repay the loan.  Most payday lenders will want to be repaid, with interest, within just a few weeks of when they provided you the loan.  However, longer-term loans can be worked at times.

The third qualification for payday loan is that you will need to be able to prove your identity.  Prior to providing you with a loan, the lender will need to have a copy of your drivers license, state ID, or passport in order to verify your identity.

Once you have provided the payday lender will all of the necessary paperwork to prove your income, bank account, and identification, applying for a loan will be easy.  Almost all payday loan applications can be completed online and within just 15 minutes or less.  Once the application has been completed, approval will come almost instantly and you can receive the loan proceeds directly deposited into your bank account within a few hours.

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