What You Need To Know About Qualifying For An Instant Payday Loan

Posted on: 24 August 2022

There are many benefits associated with instant payday loans. For instance, these short-term loans allow you to get access to the funds you need quickly, they are easy to qualify for, and they do not accumulate interest in the same way as traditional loans. So how do you go about qualifying for these beneficial loans? Continue reading to learn more about what you will need in order to qualify for an instant payday loan.

Personal Identifying Information

As with all types of loans, you will need to be able to provide personal identifying information when applying for an instant payday loan. This includes information, such as your date of birth, Social Security number, and current address. You may also be asked to provide a photo ID in order to validate this information.

Active Checking Accounts 

Many payday loan lenders will deposit your loan funds directly into your checking account. This loan will also be repaid by allowing the lender to automatically withdraw funds from your checking account on the agreed-upon repayment date. Consequently, you will be required to have an active checking account in order to qualify for this type of loan. While you do not need to have money in the bank in order to qualify, many lenders will require that your checking account is in good standing. If your account currently has a negative balance, you will need to clear this negative balance before you can qualify for a loan. Some lenders may also require that your account is active for at least a month before you can qualify for a loan. This helps lenders to avoid lenders who open accounts solely for the purpose of obtaining a loan with no intention of paying it back.

Proof Of Income

Rather than relying on your credit history to determine whether or not you are eligible for a loan, payday lenders make this determination based on your current income level. The more money you consistently make each pay period, the more money you will be able to borrow. In order to determine eligibility and loan amount, lenders will require you to provide proof of income. If you are currently employed, you will simply need to provide your last few pay stubs. If you are receiving government or retirement benefits, you will need to provide an award letter. Finally, if you are self-employed, you will need to provide a copy of your last tax return. You may also be required to show that these funds are directly deposited into your checking account. 

Contact a local bank to learn more about instant payday loans