When you need fast cash for an emergency, you want a loan option that’s quick and simple. Going to a bank is always an option. But in all likelihood, you’ll need collateral and an excellent credit history. If you know that your odds of getting a traditional loan are slim, turn your attention to payday loans.
Payday loans are an alternative to bank personal loans
Complete a simple application online or in-person and you can have up to $1,000 wired to your bank account in one business day. These types of cash advances are short-term loans that require full repayment within 14 to 30 days. There is no credit check, nor do you need a cosigner or collateral. But despite the simple, convenient process, loan approval is subject to meeting the minimum requirements.
You must be employed
Payday loan lenders will check your financial background to ensure that you can repay the loan. They’ll check to see whether you’re employed, as well as the length of time you’ve been with your employer. Employment requirements vary by lender, but on average, lenders look for three to six months of steady employment — preferably with the same employer.
You must meet the minimum income requirement
Unfortunately, getting approved for a payday loan requires more than steady employment. Along with an acceptable employment record, you need to earn at least $1,000 a month. The loan application will ask for your income information, however, the lender will also require a copy of your most recent paycheck to verify your income.
You must be at least 18 years old
Getting a payday loan involves signing a loan agreement. Those under the age of 18 cannot be held legally responsible for a debt, thus payday lender will not extend credit to people in this age group. By law, minors cannot enter into a financial agreement with a bank or another lender without a cosigner. To confirm your age, the payday lender will ask to see your driver’s license.
You need an active bank account
A large number of payday loan lenders run a cashless operation. Rather than write checks for loans, funds are direct deposited into bank accounts. Thus, an active checking or savings account is a criteria for most cash advance loans. To qualify, the checking or savings account must be at least three months old.
You must provide a Social Security number
While you can get a payday loan with no credit check, the loan application will ask for your Social Security number. This information is primarily used to verify your identity, but some lenders may use this information to report late payments to the credit bureaus.