Every day we face difficult situations in which a certain amount of money would save us a lot of hassle. But sometimes it is a more considerable amount than a regular one that you can borrow from relatives or friends. We need to think twice before borrowing from someone an amount that could exceed our budget. And yet, for such cases, there is an immediate and effective solution – a quick payday loan.
Lenders in the USA offer many types of loans, and all of them have specific requirements that every borrower should meet. Eligibility criteria vary visibly from one lending company to another, even between top financial institutions. These variations often make the difference between those who will be able to take out a payday loan and those who will not have access to this financial product.
Before applying for a payday loan, try to meet the following requirements as closely as possible.
Credit History
Credit history is a profile of a client made by a banking organization. Such a history contains information about the size and terms of loans taken earlier, compliance with the terms of payments and the absence of delays, and the number of outstanding loans from other credit institutions. There are no precisely established rules for what a credit history looks like. However, each such document contains mandatory blocks:
- the name of the responsible office;
- personal data and information about the client;
- information about the amounts taken and payments made;
- payment schedule – as a rule, the green line indicates a positive history, in the absence of delays;
- decisions on loans (refinancing, deferrals), if any;
- notes on previously submitted requests for the client’s credit history.
Usually, the major credit bureaus of the USA (Experian, Transunion, and Equifax) check the credit ratings and provide complete reports of credit history. But if you have a bad credit score, consider guaranteed payday loans for bad credit to pay for your unexpected expenses.
The credit score scale in 2021 looks like this:
- Poor (300 – 579)
- Fair (580 – 669)
- Good (670 – 739)
- Very good (740 – 799)
- Exceptional (800 – 850).
US Citizenship or Legal Residence
To get a payday loan, a borrower should prove his US citizenship or legal residence to the lending institution. According to the lending act, the US government grants loans only to legal residents or citizens. It can be proved by presenting an ID card or driving license.
Steady Income
Of the top ten largest lending companies in the USA, some do not impose very severe conditions for access to a payday loan and are satisfied with an employment proof of three months at the current job and a minimum income of $1,000 per month.
On the other hand, it is necessary to present a one-year employment contract to sign the loan agreement when you go to the branch. Also, the amount of income is an essential factor when you want to take out a loan, as most lending institutions claim that they require at least $1,500 per month. Some other companies demand a lower monthly income around this threshold.
Proof of Identity
To reduce the threat of identity theft, most loan providers require consumers to provide at least two forms of government-issued identification. Applicants must prove they are at least 18 years old. These identity documents often include a driver’s license, passport, military ID, birth certificate, or certificate of citizenship.
No Collateral
The last but not the less critical requirement is collateral that will secure your loan. The secured loan has no hidden liabilities or obligations. The fees for granting it are lower than in the case of an unsecured loan. That is why such a loan is more reasonable in case of the need to obtain a higher amount. If you urgently need money to cover your financial needs but can’t bring collateral, try an unsecured loan. It is a little more expensive compared to a secured loan, but it is a risk worthy of being taken thanks to its speed of granting.
A payday loan can solve your urgent financial needs without much hassle and unnecessary paperwork. Don’t wait until your problems grow more prominent. Now is the right time to enjoy financial stability.
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