If you need a payday loan, you are not alone! Did you know that almost 80% of the U.S. workforce is currently living paycheck to paycheck? With that high of a percentage of people struggling to survive on their income, it’s very likely that a majority of that group might need a payday loan.
A payday loan online also known as a cash advance can be a lifesaver when an unexpected money problem occurs. For example, you get a flat tire and it costs over $100 to fix it but you’ve already spent your budget for the week.
The good thing is what do you need for a payday loan is a simple question to answer. Read on to find out exactly what you need to get a payday loan.
What Do You Need for a Payday Loan?
If you’ve applied for a personal loan before you know there are a few steps involved when applying for any type of personal loan online including a payday loan. None of the steps are complicated however there are also some requirements you must meet before you can qualify to apply. They are as follows.
Be willing to pay the price of convenience
If you have no other option and you must borrow money then the fee is irrelevant because it’s not a consideration. On the other hand, if you are able to squeak by until your actual payday you might want to consider the amount you’ll have to pay back.
Just in case you didn’t know, and surprise: you actually have to pay back more than you borrow! For example, if you borrow $500 you will most likely end up paying back $550 1-2 weeks later. Depending on your needs the convenience of a payday loan might be worth the cost.
You must be at least 18 years old
Like many other things such as buying a lotto ticket or joining the military, the United States has placed an age requirement on obtaining a payday loan. You must be at least 18 years of age and have a valid identification card to prove it.
Not have any outstanding payday loans
This requirement actually comes from the state level and does vary by state. Some states have laws that limit the number of open payday loans no credit check a borrower can have at one time, and they also may limit the amount the borrower is allowed.
These laws are attempts at keeping consumers from borrowing large sums of money at very high interest rates.
You must have proof of income to qualify for a payday loan
Saying you have a job and showing verifiable income from the said job are two different things. So it’s not enough to qualify for a payday loan by just simply “having a job.” You’ll need all of your important income information such as type; hourly or salary.
You’ll also need all of your employer’s information such as address and phone number, your pay frequency; weekly, bi-weekly, or monthly because the frequency will determine when you pay the loan back.
Of course, you’ll also need your income amount and as stated above you’ll most likely have to submit a payment stub or a copy of a bank statement.
A checking account is necessary for a payday loan
When answering the question, what do you need for a payday loan online no credit check instant approval, it’s imperative to mention a checking account as one of the qualifiers.
Although most people are no longer writing checks to pay their bills the checking account’s routing number is used for direct deposit from your employer and is also used for all ACH transactions.
The payday loan that you get will be deposited via ACH and you’ll most likely write a check to the payday loan center for the date you’ll repay it on.
Have all of your personal information in order
If the time comes when you need to apply for a payday loan having the proper personal items organized will keep the process most efficient. You’ll need:
- A valid photo ID, full name, address, phone number, date of birth, and social security number
- Your checking account number and routing number. These numbers are used to get your payday loan to you and for repayment. Both of these can be found on a check so you might want to bring one of those along. This is all of the banking information you’ll need for your payday loan.
- If you don’t want to repay for your loan using an ACH payment then you’ll need your debit card.
Weigh the pros and cons
Before you dive headfirst into a payday loan it might be worth it to weigh the pros and cons against each other. Maybe it’s time to take a harder look at your finances and start applying for some better-paying jobs or look for other bad credit loan options.
A pro could be that you’re out of a bind, you got that flat tire fixed and you made it to work. A con could be that you forgot you could take the bus to work and wait until payday to get the tire fixed and now you’re starting payday in the red so to speak.
Start a savings account
Obviously, this is not a requirement to get a cash advance but it’s always good advice! No one ever has ever regretted saving money. Start looking at your expenses and see if there’s anywhere you could save a few dollars here and there. Your Starbucks habit might be a good place to start. Even the smallest amount of savings is better than none.
Learn about the best loan option for you
After reading this article, you know the answer to the question, “What do you need for a payday loan?”
Whether you decide that a payday loan is not the best option for you or that it’s a good short-term solution, we can help! Visit our personal finance learning center to learn the best way to spend and save your money, how to manage your finances, and much more.
We’ll help you take control of your finances so they don’t control you. Here are some other articles you might find interesting: