Each payday loan company will have its own requirements for borrowers to meet. Some will allow self-employed people, while others require a set amount of money per month income. However, there are some basic requirements to qualify for a payday loan, and here are the main ones you will need to meet.
Over the Age of 18
The first requirement is that you are at least 18 years old. There is no getting around this, as it is a legal requirement for borrowers to be at least 18 years old. You will also usually need to have valid proof of ID, whether that is a passport or driving license, which will show that you are old enough to get a loan.
An Active Checking Account and Proof of Income
While there are not many credit checks for payday loans, lenders need to know that they will get the money back. Because of this, they will have the requirement that you have a source of income. You will need to provide proof of this, and for many companies last month's payslip will be the best way to prove this.
You will also need an active checking account. This is for the money to be moved directly into. You can then arrange a pre-arranged payment to take the money straight back out when it comes to making your repayment.
A Minimum Amount of Income
There may be a requirement that you meet an income threshold. This is set by companies, and will be a way for lenders to make sure you are not borrowing above your means. If the lenders do not think you can afford to make the repayments, you will not be approved for the loan.
This can make it harder for those who are self-employed or unemployed from getting the loan. You will need to look for companies that are specifically designed to take on a more risky borrower like you.
Credit Checks Required
In the majority of cases, there will not be the need for a credit check. This is performed on a lender-by-lender basis, but the majority look at your income and not your past borrowing mistakes.
However, the lenders will report to the credit reporting agencies. If you fail to make a repayment, other lenders will find out.
Now you know what you will need to qualify for a payday loan. Some of the requirements will depend on the company you choose, but the top ones mentioned are those that are a requirement for all. For more information, contact companies like American Cash Advance and Title Loan.