No matter the state of the economy, there comes a time when we’ll have no choice but to borrow money on short notice — whether it’s to cover living expenses, settle tax debts, or for emergencies. Among the multitude of options at one’s disposal, payday loans are a popular choice for those who need urgent cash.
Also known as “cash advance” loans, this type of unsecured personal loan requires no collateral. They’re based on a portion of the borrower’s income, usually don’t exceed a few hundred or thousand dollars, and come with high interests. Now, if you’re thinking of taking out a payday loan, here are six resourceful tips to get yours approved in no time.
For the most part, payday credit providers base their decision on the borrower’s profile. Fortunately, the criteria for these short-term loans aren’t as drastic as other types of credit. You must be at least 18 or 21 years old depending on your country or state of residence, have an active checking account where the money will be deposited and prove your ability to repay the loan in due time (more on this below). So, if you falter on one of these starting requirements, your odds of approval will be quite low.
Thanks to their growing popularity, you won’t have trouble finding a certified lender, whether you live in Canada or the United States. You may choose a traditional physical lender or visit this site to get an idea of what online payday loan institutions look like in Canada. Whichever option you go for, make sure you select a lender close to home to ensure a smooth process and avoid complications later on. Use this opportunity to compare loan fees and interest rates, too.
As a “potentially risky” borrower, you’ll need to reassure your lenders that you’re indeed capable of paying back your loan. This is perhaps one of the most important criteria for approval. For that reason, you’ll be asked to provide proof of employment and a pay stub to disclose how much you earn every month. Although the requirements vary from lender to lender, a stable full-time job is almost always a guarantee to have your payday loan application approved.
It goes without saying that lying about your employment status, level of income, or other aspects of your application can compromise your chances of securing a payday loan. Lenders expect no less than honest, transparent borrowers who they can trust. Similarly, attempting to conceal your poor credit history will only result in a letter of rejection. Whichever credit provider you apply to, show full disclosure as proof of your engagement and seriousness as a customer; you’d be surprised how far this can take you.
Just because you’re the ideal candidate for a cash advance loan doesn’t mean you should go all out. These are short-term, high-interest loans, which don’t necessarily make them the most advantageous credit option. However, they’ll come in handy if you’re ever caught in a pinch and need to secure some cash as soon as possible. In general, the higher the amount you want to borrow with these loans, the less likely approval will be. So, remember to take out only what you need to avoid making repayment a never-ending hassle.
Finally, when it comes to financial matters, especially credit, discipline, and organization are essential. Before you start to fill out forms or take a step towards getting your payday loan approved, take a moment to check that your documents are all in order.
Prepare a copy of your photo ID, passport, pay stubs, and keep them in a neat folder or scan them and store them in a dedicated digital file. This will help you send the right documents to your lender and avoid unnecessary back and forth, which may send the wrong signals.
Ultimately, while the thought of taking out a loan might make you anxious, securing a payday loan is a relatively simple process. As long as you’re able to provide all required documents, attest your income, and give your lenders proof of your solvability, getting your application approved should be a cakewalk. Word to the wise: If you’ve never taken out this type of unsecured loan before, be sure to conduct some research and consider a few more borrowing options before reaching out to a qualified payday loan lender. Also, settling existing debts first always helps!