Payday loans are the perfect short-term financing option to consider if you don’t want to touch your emergency savings or have none at all while having imperfect credit records. But because of its high-interest rate, it’s best practice to draw a repayment plan pre-application so you can pay up in full and within schedule.
Some of the best websites to get a payday loan are iPaydayLoans, WeLoans, US Installment Loans, CocoLoan, and Fast Title Loans. These online loan brokers can connect you with lenders that provide same-day loan approval services and affordable terms as well as a high acceptance rate. The caveat is that you must meet their eligibility requirements to qualify. Let’s take a look at some of the most common requirements to get a payday loan;
Requirements To Get Payday Loans
Age
Since states in the US are averse to granting loans to minors, lenders generally require that a payday loan applicant is at least 18 years old. However, the age limit isn’t the same across the board. For instance, you can qualify for a loan in Georgia if you are 16 years and older, while other states may have higher age restrictions of up to 21 years to apply for loan services.
Permanent Residency
Some lenders require that an applicant is a US citizen or permanent resident before they approve them for a loan. They may need the applicant to have a social security number, taxpayer identification number, or in some cases, albeit few, a visa.
Credit Ratings Or Score
Credit ratings are one of the most important factors that come into play when assessing a loan applicant for possible credit. Some lenders have a minimum credit score every applicant must meet to qualify for their loan offers. The market average shows that borrowers with a credit score of at least 600 are good enough to qualify for bad credit payday loans online.
Income
Before approving you for a payday loan, the lender wants to be assured you have the financial wherewithal and overall repayment capacity to pay back. What better way to gauge this than looking into your income? Your income says a lot about how much you can afford and is considered when approving loan amounts.
Debt-to-income ratio
How much you earn is one thing; another is how much you have left when you subtract all other existing debt payments. The ratio of minimum monthly debt payments to income is what is known as the debt-to-income (DTI) ratio. Every loan applicant should aim for 35% or lower.
Active checking account
The most common mode of payday loan payment is direct deposit. Therefore many lenders may require a borrower to have an active checking account with recent statements available before they can qualify for a loan. Secured loans may be an exception.