Tim Sherman

What Are The Requirements For A Payday Loan?

There are countless reasons for a person to find themselves in need of a payday loan. Unforeseen medical expenses, financial miscalculations, and car accidents are all common predicaments one can encounter. Financial hardship doesn’t have to be something you’re ashamed of. Things happen, and you should always keep your options open.

You might be tempted to run off to the bank and request a personal loan. There’s also the option of asking a trusted friend or family member for some funds. Some banks even allow you to overdraft your bank account. Yet, a payday loan just might be the right option.

Payday loans allow you to request just the right amount of funds you know you’ll be able to pay back, right on pay day. If you or someone you know are considering a payday loan, it’s important to keep these basic requirements in mind. While requirements likely vary from state to state, there are some rules that transcend throughout each state.

Employment And Banking

While some states don’t actually require you to be employed at the time of a payday loan request, you’re still going to need some sort of proof of income. You’ll need to prove that you do, in fact, receive steady income. Providing checks and banking statements is one way to solidify this proof. With that said, you’ll also need to prove that you have a bank account. A debit card or voided check might suffice.

Address Verification

When applying for a payday loan, you’ll need to prove that you live in the state in which you’re applying for a loan. If you live in California, for example, you’ll be hard pressed to find an institution in Minnesota willing to offer you a payday loan. A driver’s license or piece of mail will easily suffice.

Age Requirements

If you’re applying for a payday loan, you’ll need to prove that you’re at least 18 years old. A driver’s license, social security card, or birth certificate should be all the proof you’ll need.

Financial Standing

While it’s possible to receive a payday loan with bad or no credit, there’s still a financial standing payday loan institutions prefer. You must not have filed for bankruptcy, nor be planning to do so. This ensures that you’re not planning on receiving any type of bankruptcy relief, and are in a good enough financial standing to pay off the loan request.

Military Limitations

It’s usually understood that people receive a pay check weekly or biweekly. Thus, if you serve under any branch of the military (Army, Navy, Marine Corp, Air Force, Coast Guard, or any type of reserve), you will not qualify for a payday loan if your working order does not include specification of a 30 day or less pay period. This ensures that the loan will be paid off in less than a month’s time.

Online Application Requirements

With the rise of technology and the internet, there are some websites that allow you to apply for payday loans online. Here is a list of requirements if you choose to go through the online application process for a payday loan (could vary from state to state):

  • You must provide a social security number or taxpayer ID Number
  • Your checking or savings account must have been active for no shorter than one month’s time
  • You must be prepared to offer a phone number for additional verification requirements

Payday loans are perfect for those who need funds in a short period of time and are willing to utilize their paycheck in order to pay back the loan. It’s important to keep in mind that these requirements are subject to change, depending on which state or agency you decide to go through.