Everywhere you look, you will see ads for payday loans. This seems to be a growing trend in the online community and there is no stopping it. If you noticed, most – if not all – of the payday loan ads that we see online are tagged as “guaranteed.” You would also most likely see ads claiming “guaranteed approval” and the like. Is there any truth to this or is it just a way of attracting new customers?
The fact is that payday loans are the most convenient way of borrowing money from a lending institution. The requirements are almost negligible and the processing very fast. And yes, it is quite true that almost no one ever gets denied for a payday loan. The operative word here, however, is almost. There is always that chance – no matter how small – that an application for a payday loan can be denied.
How can this happen?
As I mentioned above, there are a few requirements when it comes to a payday loan application. Few they may be, but they are every bit as important as the requirements for any other type of loan. Naturally, specific requirements vary from one payday loan provider to another. In general, however there are some common basic requirements:
-Borrower must be at least 18 years of age
-Borrower must have a stable job. There might be a minimum amount that he should earn in a month. More so, there might be a minimum number of months that he has been with his current company
-Borrower must have a current account
If you apply for a payday loan and one of these requirements is not met, then you just might become part of that small minority that gets their payday loan applications denied. Let’s see why. The first one is pretty obvious – minors are not really allowed to do much by way of “legal” transactions. As such, there is no going around the fact that one has to be at least 18 to get a payday loan. The second one – with all its sub points – also makes sense. Think about it, if an individual is not really earning much from his job, then how can he possibly afford to pay off a payday loan? Perhaps his earnings might not even be enough to get him his daily needs. As to the number of months that a person has been in his current job, it could be an indication of his stability. If he has changed jobs several times within the past year, then who is to say that he would stay in this current job long enough to pay off his payday loan? Last, the person must have a current account. This is quite important because this is the mechanism by which the borrower will receive the cash from the payday loan provider. This could also be the means by which the payday loan provider could receive payments (through auto debit).
If you are going to apply for a payday loan, you might want to make sure that you are ok with all these areas first so as not to chance getting denied.