Do you constantly find yourself struggling to make ends meet before your payday reaches?
Well, you’re not alone. Over 12 million Americans find themselves in the same financial situation, forcing them to look for assistance to help them get through until payday. For most, this usually comes in the form of a payday loan.
If this is your first time taking one, here’s a few tips to ensure that your application gets approved.
1. Monitor Your Credit Score
Your credit scores represent your creditworthiness. Strong credit points will give you better chances of having your application accepted. But with weak credentials, you may have to build the points before applying. To know where you lie, make sure to check your credit scores online.
This way, you can have a better idea of the interest rate and payment amount you’ll get from the loan.
2. Get a Copy of Your Credit Report
Besides knowing your scores, it’s also crucial that you get a copy of your credit report. The report will help you know your outstanding debts along with your repayment history and any other factors affecting your credit score.
If you can rectify the errors in your report, you’ll help raise your credit score in no time. Order a free copy of your credit report online or from your local bank.
3. Prove That You’ve Got a Stable Income
Make sure that the payday loan information posted on your documents about your employment and income status is correct. You can bet the lenders will ask for your salary data and contact your current employer to verify the information.
If at the moment you don’t have much money flowing in, take time to improve your employment situation first.
4. Look for the Right Lender
If you’ve bad credentials, you’ll have a better chance of getting a loan with your local credit union than with an unfamiliar lender. Credit unions can offer an opportunity for getting small loans with low-interest rates. Better yet, borrow from your local bank, especially if you’re in an existing relationship with them.
5. Pay Your Bills on Time
Since credit scores are among the key qualifiers to getting loans, try as much as possible to beef it up before making the loan application.
One way you can do that is by paying bills timely. On-time payments will not only boost your chances of getting an unsecured personal loan but will also make you pay lower interest rates.
6. Reduce Your Debts
If you’ve got a high debt-to-income ratio, paying down your debts could help improve your credit score. To reduce this high ratio, consider making extra payments or taking a side hustle to increase income. You could also open a new credit card.
However, be careful not to spend too much to avoid hurting your credit score. This could make it difficult to get an unsecured personal loan later.
7. Send a Joint Application with a Creditworthy Cosigner
Other useful tips on how to get payday loans, include applying with creditworthy cosigners.
If you have weak credentials, co-signing with people with excellent credit scores could make up for yours and get you the loan. Of course, you and the cosigner will have to be comfortable with sharing the debt.
Since both of you’ll be equally responsible to repay the loan in case the other misses.
Interested in a Payday Loan?
Taking out a payday loan can help cut down debt load and cover unexpected expenses. Regardless of this, you still have to go through other options, such as installment loans and no credit check loans before you settle on this one choice.
Before you send your application, check out this post to know how much you can borrow as payday loan.
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