How do payday loans work? If you find yourself in a financial bind, you might be asking yourself this question.
While payday loans are not something you should use regularly, they can be helpful when you are facing a financial crisis. More than half of Americans live paycheck to paycheck and will experience serious problems from an emergency expense. For this reason, having access to a payday loan can be the difference between paying for groceries or going without.
If you have never used one of these loans, you may be wondering about the payday loan requirements you have to meet. Fortunately, securing a payday loan can be a quick and easy process for most people who need them.
If you are ready to apply for a payday loan but aren’t quite sure of the requirements, this short and simple guide is for you.
You Must Be 18 Years Old
One of the minimum requirements for a payday loan is to be 18 years of age. This is likely because minors cannot legally enter into a contractual agreement on their own. If you are under the age of 18, you will be denied.
You Must Have an Active Checking Account
One of the payday loan basic requirements is to have an active checking account. This is because the lender will use an automatic withdraw to repay the loan. Some companies also require a history of direct deposit payments into your checking account.
You Must Have a Source of Income
The point of getting a payday loan is to help you pay for expenses until your next payday. For this reason, you have to have a regular source of income to qualify. While some lenders require you to be employed, others will take alternative sources of income, such as state disability payments.
You Must Have Valid Identification Documents
Applying for a payday loan is just like applying for any other financial product. You will need a valid ID to verify your identity. Depending on the lender, you will need a social security card or tax identification number and a government-issued photo ID.
You Must Have a Working Phone Number
As with any lender, the payday loan company you choose will need to make sure they can contact you at any time. For this reason, you will need a working phone number to apply. If you apply online, you will also need a valid email address.
These Are the Payday Loan Requirements You Need to Meet
There are a few payday loan requirements you must meet to be approved for a loan.
You must be at least 18 years of age. You should also have a checking account, a source of income, and valid identification documents. You will need a working phone number and/or an email address depending on if you apply online or in person.
If you meet these requirements, you have a great chance of being approved for a payday loan.
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