Also referred to as bad credit, short term or low balance loans or even cash advances, payday loans are short term solutions for emergencies. As the name clearly states, you'll be able to get small amounts of money, which can be repaid as soon as you get paid.
Qualifying for such payday loans is not as difficult as it may seem. Since they're relatively simple to get and money can be transferred within hours only, most people are a bit anxious and imagine the requirements are overwhelming. Only a misconception!
Payday loans have minimum requirements, only because of their short term profile. They don't pose such a high risk for lenders, hence the low requirements. So, how do you get qualified for a payday loan, then?
Age requirements
Payday loans are open to pretty much everyone. There aren't too many requirements regarding age, yet all lenders will require applicants to be at least 18 years old.
In some cases, some lenders might be a bit stricter and demand their customers should be older than that. But in terms of legal requirements, no one under 18 can apply for a payday loan.
If you're not sure, simply check the chosen lenders' terms and conditions, but 18 is pretty standard for all of them.
Banking requirements
This is one of the most important requirements to get qualified for a payday loan. Even if you find a lender accepting face to face applications, no one will ever hand you cash.
In other words, no matter how you apply for a payday loan, the funds will be transferred to your bank account. Simply put, this is a requirement to get qualified, you'll need a bank account.
The bank account must be active and in your name. Giving someone else's bank account during the application won't work and will most likely get you rejected.
Working requirements
The name of this loan says everything about it. It's a payday loan, meaning it's a short term loan given out for less than a month. Based on the name, you'll have to repay it on your next paycheck.
If you don't have a job, it won't be referred to as a payday loan, and you can't qualify for it.
Working requirements may vary from one lender to another. Some lenders will only ask you for the last payslip. Some others will ask you for payslips over the past three months. They want to make sure you didn't get a job just for this loan.
Having a job for a long period of time shows financial responsibility and will increase your chance of being accepted.
Documentation requirements
The first steps of the application won't ask for too much proof but mostly for your personal details. These details will help the lender determine whether or not you can afford the loan but also to assess the potential risk.
Some of the documents you'll have to upload include identification, proof of address and proof of work.
Identification could be an ID or a passport. Proof of address is usually a recent bill in your name, while payslips represent the best proof of work.
Other general requirements
These are the most important things to get qualified for a payday loan, but there are a few other extras that make common sense for a lot of people. Not for everyone, though.
For example, you must be a resident of the country. Being a tourist and applying for a loan won't work. Even if you work in another country, lenders can't check properly, so they'll reject your application straight away.
Being in a state of bankruptcy will also get your application rejected. You're struggling with money, and chances are you won't be able to repay the loan, or at least that's how the lender sees it. A recent history of bankruptcy is also problematic.
Finally, unlike most expectations, you don't necessarily need a good credit score. After all, if you have an income, you should be able to pay the loan, and that's all that matters for lenders.
In the end, these are the main requirements to qualify for payday loans. But then again, many lenders may have extra requirements, so double check everything before completing your application.
