Payday Loan Borrowing – A Tour of Essential Facts

Payday loan is, most probably, the fastest way to take out cash advance before paycheck hits your bank account. Being credited to your account without credit check, payday loan makes the ideal choice for those who have a history of dented credit status. Irrespective of your credit ranking, you can apply for payday loan and it will be approved instantly. This is why payday loan is also referred to as no credit payday loan.

The loan is often sought to meet urgent requirements such as paying for medical bills or just to support household expenses until paycheck arrives. If you are suddenly trapped into monetary drought, payday loan will immediately come to your rescue. And the fine point is that you don’t have to worry about your poor credit score as the lenders are unlikely to run a check on your credit standing.

The lenders won’t ask for collateral. Payday loan will work a good deal for those who have neither good score nor collateral to qualify for a regular loan. The obligation on your part will be to make payment as soon as you receive your paycheck. Make sure to pay back on time to avoid hefty payment as interest on the loan.

What are the basic requirements to qualify for payday loan?

Though you will not be asked to submit your credit report, still the lenders will require some essential documents to assess your eligibility criteria. The documents that you have to keep ready for loan approval are as follows:

Proof  of Employment: You must work with the same organization for at least three months at a stretch.

Proof of Earning: You need to have a minimum income slab of $1000 to qualify for payday loan. Pay slip will be a proof of your income status. The lenders may run a check on your checking account to ensure whether it is active.

Proof of Citizenship: You must be a citizen of the United States of America to be eligible for payday loan.

Proof of Age: Minimum age to obtain a payday loan is 18 years. You can use your college certificate or driver’s license as an age proof document.

Getting a loan without any credit check-up is nearly impossible. No wonder, payday loan makes an attractive deal for the potential borrowers. However, they should make themselves aware of some important details pertaining to payday loan borrowing. Let’s have a look at them:

Check Writing History: Whether you have written checks to merchants or not does not make any impact on approval process. However, if a borrower has a history of non-payment of payday loan, then history of check writing will come to the forefront in times of identity check.

No Tracking of Borrower’s Debt Status: Payday lenders never check a borrower’s debt history to know how many outstanding debts the person has.

Social Security Number: As per law, you are required to provide a social security number to obtain a payday loan. In most of the states, the borrowers are strictly prohibited from getting more payday loans than what they can afford to repay.