- Check the lender’s requirements – Each lender has different requirements for proof of income, credit scores, loan amounts, and repayment terms. Before applying with a lender, be sure its requirements can meet your loan needs.
- Understand your state laws – Each state’s Attorney General has the authority to place limitations and regulations on payday lending or outlaw it entirely. These laws work to prevent predatory lending practices that take advantage of low-income families, and payday lenders must abide by them. Educate yourself on these laws and verify that your lender complies with any applicable state statutes.
Instant payday loans are regulated at the state level, so lenders must follow the guidelines of the states in which they operate. For this reason, requirements to get a payday loan will vary from lender to lender and state to state. In general, however, lenders require several basic things to qualify for a loan:
- Age – In order to be legally bound by the payday loan contract, the borrower must be at least 18 years of age.
- Active checking account (Credit Score) – Many payday first payday loans Circleville OH lenders don’t deal in cash or issue checks for your initial loan proceeds – they will want to direct deposit your funds into your active checking account. Many lenders also require your loan repayments to be auto drafted from the same account.
- Proof of income – Income requirements will vary by location, but lenders want to see documents proof that you can repay the loan when it’s due. While this doesn’t need to be income from a traditional job, it does need to be recurring, consistent income.
- Address, phone number and an email – If you fail to make your payments on time, your lender will want to know how to contact you. You’ll need to provide a stable home address, contact phone number, and email address. Many lenders will also ask for contact information for references as well.
Reasons why you might have been rejected
Although the requirements on payday loans are more relaxed that with other loans, lenders still deny loan applications if they feel the risk of default on the loan is too high. If your application is declined, it may be because:
- You are not employed or your income is too low – If your income isn’t enough to cover basic living expenses and make your loan payments, lenders may deny your application for fear that they won’t recoup the loan.
- You already have a payday loan or recently borrowed one – Each state has different limitations, but most states limit borrowers to a single payday loan outstanding. In states where multiple payday loans are allowed, borrowers are typically limited to $500 – $1,000 in loans at any given time.
- You have too many current debts – Since lenders don’t look heavily at your credit scores, they will likely look at your current debts to gauge your ability to repay. If you have too many current debts with too little income (also referred to as your debt-to-income ratio), lenders may not be willing to take that risk.
How to Get a Payday Loan Online at Payday Depot
Once you have decided that an instant payday loan is the best solution to your financial problem, you can often complete the application process immediately and receive funding the next day. To get a payday loan, take the following steps:
- Fill out the Loan Application Form – Many reputable payday lenders offer a simple loan application that can be completed online at your convenience. Have your income documentation and identifying information ready to make the application process as seamless as possible.