To be able to apply for a payday loan applicants must be employed either on a full or part-time basis since a payday loans are actually a form of cash advance on a person’s salary. This means that the loan company will lend an employed person a relatively small amount of cash, between $100 and $1000, on the condition that it is repaid in full, plus interest, on the very same day as the borrower receives their next salary payment.
The primary criteria against which payday loan companies assess this type of loan application is therefore a person’s employment status and level of income. This in turn means that the applicant’s credit history is deemed to be irrelevant and negates the usual requirement for a credit check. By eliminating the almost universal credit criteria of a credit check, USA payday loan companies are able to offer short-term loans to applicants who by virtue of their poor credit history are barred from accessing other forms of credit such as credit cards and long-term loans.
In order to qualify for a payday loan or cash advance loan it is necessary for applicants to provide proof of both their employment status and income. This is not as onerous as it may sound as it simply involves the applicant submitting copies of their three latest payslips together with the completed application form. In fact the entire application process is extremely quick and easy to complete whether applicants choose to apply online or in person at a high-street lending store.
Standard Payday Loans Approval Criteria:
– Employment status evidenced by 3 copies of the applicants most recent payslips
– Proof of home address evidenced by a bill from a utility company or copy of the applicant’s most recent bank statement
– Submission of personal bank account details
– The value of the loan applied for must not exceed the value of the applicant’s next salary payment
Dependant upon the applicant satisfying the above criteria, applications for payday loans are usually processed within minutes and if approved, applicants can have their cash within the hour if necessary.