Fortunately qualifying for a cash advance with a payday loan company is easier than qualifying for other types of loans. By providing proof of income and a stable checking account you can easily get approved for a loan, even with poor credit. The major steps to getting approved for a payday loan are outlined below, but do know that these requirements can be different depending on the lender.
Establish Proof of Income
As mentioned earlier, providing solid proof of income is the most important qualification of getting a payday advance loan. Lenders like to see that you have a stable job and the ability to repay the loan. Most payday lenders require a recent paycheck stub and at least two months on your job. The longer you’ve been at the same job the more comfortable the lender will be, this is especially helpful for larger payday loans of $500 or more.
Have An Open Bank Account
Another must-have for getting approved for a payday loan is an open bank account. Lenders like to see that you regularly deposit your paycheck into your account and you use your account responsibly. Having your paycheck directly deposited into your account is a big plus. Having your account open for at least 3 months is usually requirement as well, with longer durations being helpful for larger paycheck advances.
At Least 18 years Old
In the United States, a minor person cannot enter into a legally binding contract without parent’s consent. Because the legality of such transactions can vary from state to state and often have different interpretations, most payday loan companies require applicants to be at least 18 years old and provide a valid driver’s license or state issued ID.
Complete an Application
Lenders will usually ask you to fill out an application; either in person, by fax, phone, or online. They’ll ask for your name, address, phone number, social security number and other personally identifiable information. This is to both prevent fraud and also to contact you in the event of default.
Additional Qualifications and Considerations
Some lenders may ask for more information, for example personal references. They may even verify the information you’ve given, so be sure to give accurate and honest answers. There may be some instances where a payday lender may not be comfortable making a loan, for example if you work for a temp agency or only part-time. Some lenders may not like to see excessive bad check charges on your bank statement. Also, some states require lenders to register your name in a database to ensure you do not open more than one payday loan at a time.