You may have heard of payday loans being the solution to your cash crunch problems, especially during emergencies. Your friends and family may have told you about the times when they were part of a cash distress phase and how payday loans saved the day for them. You may have also heard of some people boasting about a hike in their credit ratings in no time, all thanks to borrowing payday loans. You may have heard about online payday loans from a number of people which lead you to wanting to apply for one yourself, due to either one of the reasons mentioned by us or for another purpose.
Whatever be the reason for you wanting a payday loan, this article is meant to help you understand whether or not you qualify for the same.
Now, let’s address your questions one by one:
Can I Get a Payday Loan with Bad Credit?
Majority payday loan lenders accept requests with bad credit as well, since they do not conduct credit checks. You see, payday loans are meant to be given as soon as possible and conducting credit checks will only slow down the process. That’s why, most lenders avoid conducting credit checks, and even if they do, they may conduct a soft credit check over a hard one to get a brief idea about your previous repayments. Now, there are 2 benefits to this.
One is the fact that your chances of getting a loan are in your favor. The second is that there shall be no reduction in your credit history which means that if you don’t get approved with one lender, your chance of getting approved by another is just the same and not less, unlike a situation wherein you go to a traditional lender who conducts hard credit checks and makes it even more difficult for you to get a loan elsewhere due to the obvious reduction in your credit rating.
Do I Need to Offer Collateral?
Processing collateral takes a while which is why payday loan lenders avoid asking for collateral. Moreover, a payday loan is a small cash advance provided to help you get through the month which you are supposed to repay once you receive your next salary. Such small cash advances do not need collateral in order to be secure.
How Old Do I Have to Be to Get a Payday Loan?
In order to get approved for a payday loan, you have to be at least 18 years old.
What Will My Lender Ask for?
Your lender will firstly need you to have a stable monthly income and prove the same with your income statement which is the basis of approving a payday loan. Apart from that, if you choose to apply online, you will have to have a checking account. Your Social Security Number, Area of Residence and Age Proof may be required as well.