Are you in need of borrowing for a lender but wonder if you qualify? Explore the basic requirements for a guaranteed approval payday loan.
$38,000 is how much the average American is in debt. While the reasons why individuals and family’s carry debt vary, there are times when you need money immediately.
And if you’re in debt, you don’t have extra cash laying around. That’s when a guaranteed approval payday loan can come in handy.
Before you rush to get that loan, you need to know if you even qualify. Not everyone is a good candidate.
You also need to know what information you need to supply in order to get approved. We can help.
Keep reading to learn how to get approved for a payday loan.
What a Guaranteed Approval Payday Loan Is
Payday loans are also known as cash advances. This type of loan got its name because many people borrow the funds by providing the lender with a post-dated check that gets cashed on the borrower’s payday.
Payday loans are also:
- Short-term
- Low-balance
- High-interest
These loans are good for people who need to borrow a small amount of money quickly especially if they don’t have access to a credit card or savings account.
Payday Loan Requirements
Every lender has its own set of requirements. However, there are several requirements that each lender will ask the borrower to qualify for such as:
- Valid identification
- Be at least 18 years old
- Have proof or verification of income from a job or other source
- Have an active account with a bank, prepard card or credit union
However, even if you do qualify, they aren’t for everyone. You may opt to learn how to get out of debt.
What You Need to Know About Payday Loans
How much of a loan you qualify for depends on your income and the lender. Most states have laws that establish the maximum amount you can borrow from a payday loan.
Your state may also limit your ability to have more than one outstanding payday loan at the same time. Most loan amounts vary between $50 and $1,000.
If you do live in a state where you can have multiple payday loans, you may be eligible to be put on a payment plan with your current lender.
Read and Understand Your Contract
Always read your repayment schedule carefully and make sure you understand it before you agree to anything.
Payday loans are not designed to help you rebuild your credit so don’t take one out if that’s your only reason. Make sure you can pay back your loan entirely when it’s due.
Expect Interest Rates to Be High
Remember that it’s not just the loan amount you’ll owe. Very high-interest rates are also tacked on.
It’s not uncommon for a payday loan to be as high as 500% or even 1,000% in terms of annual percentage rates (APR). While the industry is regulated, payday loans have high fees tacked on to small loans.
Check Your State Laws
Check with your state to see if there are laws on how much a payday loan lender can charge for loans. Some states such as New York have banned them altogether.
You should also be aware of the myths that are associated with payday loans. The more you understand, the smarter decision you’ll make as to whether this type of loan is a good choice for you.
Keep Educating Yourself
The more you understand about subject matters such as how to get a guaranteed approval payday loan, the easier you can manage your life.
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A professional writer with over a decade of incessant writing skills. Her topics of interest and expertise range from health, nutrition and psychology.