Unpredictable financial emergencies arise. And when they do, few people have options to deal with them.
That’s the beauty of payday loans. Despite any prevailing circumstances, you can borrow cash when you need it, and don’t have to be paying it off for months like installment loans.
One of the top reasons people fall short on cash is slack income in between checks. Depending on how much you make per hour, sometimes it doesn’t add up to cover your debts.
Other life trials like marriage, a new baby, divorce, and natural disasters steal away income. And it’s unfortunate that people don’t have a contingency plan that falls in place when these things happen.
If you’re in the midst of a financial emergency and need to cash your way out, keep reading. We reveal the answers to the question “how much can a payday loan offer me”.
Who Can Borrow Cash?
Payday loans are short-term loans that get repaid by your next pay date. They’re need-based but are typically small loans that fall under $1000.
People with jobs and bank accounts qualify for payday loans. As long as the borrower can show proof of steady cash flow, most times they’re approved right away.
Bank accounts support income statements, as most borrowers have direct deposit. Lenders consider that a plus when looking to turn a person into a borrower.
Depending on the lender, most payday loan requirements are simple. Lenders know people need money in a hurry, so they keep the process straightforward.
To qualify for a loan you need:
Proof of ID
Borrowers must have valid identification. Proper ID shows proof of residency and age. The legal minimum age to borrow money in the US is 18 years old, same age as when you can get your first credit card. Make sure you have a state-issued driver’s license or identification card.
Proof of Income
Lenders need to know you can pay the loan back. Paystubs suffice as evidence of income—by the week, two weeks, or monthly.
Active Bank Account
Bank accounts also serve as proof of income. They’re also used by lenders to repay your loan. Lenders draw what you owe right from your checking account on or the day after your payday. You must have direct deposit.
Some lenders do lend to borrowers without an active checking account. But that’s rare. They use a mail-in payment process. It’s slower and extends the timeframe in between when the borrower can borrow again.
How Much Can You Borrow?
How much you make determines how much lenders offer up. Most times, the minimum monthly take home is no less than $500 to receive consideration.
State laws determine payday loan caps. Some set the ceiling at $1000, others allow more. Expect a typical loan to fall between $200 to $1000. The amount of your paycheck sets your loan limit.
After so many payoffs, some lenders reward borrowers by increasing their loan limits. Higher loans do incur larger fees and interest rates. So be mindful of that as you take out more.
Get a Payday Loan
Emergencies happen. If you’re not prepared, you have the option to borrow cash in between paychecks to get through.
Shop around online for the best payday loan lenders. Select one that meets your level of convenience, and be responsible with your loan.
Are you having a financial setback? Check out our payday loans and get up $5000 right away.
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