How Do You Qualify for a Payday Loan? The Requirements Explained

Most loans require credit checks, making it difficult to get a loan if you have bad credit.

Did you know, though, that approximately one-third of all Americans have a credit score that is less than 601? Yes, a lot of people have, what lenders would consider bad credit.

If you have a low score and need to borrow some money, you could consider applying for a payday loan. Before you do this, you might want to find out, “how do you qualify for a payday loan?”

Learning the answer to this question can help you decide if this is the right option for your financial needs. Here is an explanation of the eligibility requirements needed for payday loans.

You Must be 18 or Older

When applying for payday loans, you should realize that age matters. Payday loan lenders will not approve loans for people under the age of 18. You must be an adult to qualify for one.

Additionally, you’ll need to provide a state-issued ID to the lender. This ID can help you prove your age, and it also enables you to prove your identity.

Therefore, if you are at least 18 years old and have a valid state-issued ID, you meet this requirement.

You Must Have a Source of Income

If you are wondering how to get a payday loan, you should know that you need a source of income. If you borrow money, the lender needs to ensure that you can repay it.

Therefore, lenders want to see that you have some income source you can use to repay the money you borrow.

You can use pay stubs as a way of proving you have a job. If you are self-employed, you might not have pay stubs. Instead, you can use your bank statements or 1099s and tax returns.

You Need a Checking Account

The next requirement for a payday advance is a checking account. You must have a checking account to be eligible for a payday loan.

Lenders use your checking account for two main things. First, they use it to deposit the proceeds from the loan. After applying and getting approved, the lender will deposit the money within a short time.

The second thing a lender uses it for is for repayment of the debt. When your payday loan due date comes, they will electronically take the payment from your account.

You Need Proof of Residency

The final thing you need when applying for a payday loan is proof of residency. Your state ID card might show your address, but you might need additional proof of where you live.

You can discover more about the requirements of payday loans by researching lenders and their eligibility requirements.

How Do You Qualify for a Payday Loan? Ways to Learn More

Do you understand the answer to, “how do you qualify for a payday loan?” If so, you probably know if you should apply for one or not.

To read more on topics like this, check out the Money category