Basic Requirements To Apply For Payday Loan – Payday Loan Application Explained

When you apply for payday loans, there are some requirements to meet. These vary between lenders. However, there are specific basic requirements set forth by regulators that every payday loan lender will require from you. Accessing a payday loan will hinge on whether you meet the lender’s requirements or not. Of course, you stand a higher chance of getting the loan if you meet the needed requirement. So, without further ado, here are some of the basic requirements to apply for payday loans.

Age

While all payday loan companies in the US require you to be a citizen, you also need to meet the legal age requirement. Therefore, most lenders will need you to be 18 years and above. However, some states are placing their regulations for payday loans. Due to this, some states require you to be at least 19 years old to apply for a payday loan.

Identification Document

The identification document is for verifying your identity, age, and even your state. You will need a government-issued document, like your identity card, passport, or driver’s license. If you are in the military, you can also use your military ID.

Contact Details

Most lenders will also need your contact details. For example, some might need your telephone number and email only, while others might require a recent bill for proof of home address. Other lenders might require all of this information or more. Lenders require this information so they can reach you in case of anything.

Income Source

While a payday loan is not like a traditional loan, lenders still want to know that you can afford to repay the loan. As such, you will need to provide proof that you are earning some regular money. Some lenders do not limit how much you need to earn to qualify for their payday loans. Nevertheless, some payday loan lenders put a cap on how much you need to earn before or after tax. For instance, MoneyMutual requires a borrower to make at least $800 to qualify. Before you apply for payday loans with any direct lender or marketplace, ensure that you consider the income requirements. This way, you can avoid disappointments after applying, hoping that your income amount doesn’t matter.

Checking Account

It is best to have a valid bank account. This is where lenders send your money once it is approved. In addition, a checking account, especially if you use it to receive your salary or wages, makes it easier for the lender to withdraw their repayments on the due date.

Credit Rating

A credit score shows whether you are a good creditor or not. But, unfortunately, not everyone has an excellent credit score. Due to this, many people miss the opportunity to borrow from financial institutions. And, when one can access the funds, it comes at a higher cost than people with great credit scores. Fortunately, some payday loan lenders still consider people with poor credit scores. However, your terms might be more unfriendly than if you have a good credit rating. As you shop for a payday loan lender, confirm their standing on credit scores and know where you stand. Whatever requirements are there to apply for payday loans depend on the lender you are using. However, the above are some basic information you need to have ready with you when applying for payday loans. As you shop around, we encourage you to check the requirements for individual payday loan companies or payday loan marketplaces before you start your application.