Home / Loans / What You Need to Get a Payday Loan

What You Need to Get a Payday Loan

Although it isn’t impossible to get a payday loan without a bank account, for most responsible lenders within the payday loan landscape this would prevent you from being able to access services for financial assistance. There are reasons for this, including the fact an individual without a bank account cannot prove their income, and therefore can’t prove their capabilities to pay back a short-term loan on time.

Most people in this day and age are living month to month, and from payday to payday. It is a sad state of affairs but one that has meant there is a need for payday loan companies. Sometimes there are moments in life when you need that little bit of assistance. Whether it is to put food on the table, pay a bill before it becomes late, pay off a store or credit card, or for other emergencies, a payday loan can provide the short-term assistance that can see you through until your next pay packet arrives in your bank account.

The problems of high interest payday loans are a real consideration to make, but not all payday loan providers have hidden fees. It is worth searching around for the best deals, and always being wary of small prints. If you can clearly see how much you are expected to pay back and within what timeframe, and if you can guarantee that it can be paid back without putting you in further financial difficulties, it is an option worth pursuing in tough times.

What do you need in order to get a payday loan provider to agree to giving you a loan though?

Proof of Income – This is where it becomes imperative for most payday loan lenders that the person applying for a loan has a bank account. It enables the company to check that your bank account is active and that it has a regular income going in each week or month. The checks will take into account the last few statements, and who is paying your wages.

Simple Repayment Options – Having a bank account also ensures that a payday loan company can easily set up repayment terms. A payment schedule can include a direct debit or standing order, limiting the risk from the lender of a person failing to pay, or missing a payment deadline. Having a bank account lowers that risk significantly and makes an application more desirable straight away.

Each company is different after this in terms of what it is they are looking for from an applicant. For some a simple credit check will be enough, others might want you to be more detailed in letting them know all about your current financial situation before agreeing to giving you a payday loan.

Mostly we would say to be aware of the risks attached to a payday loan, as well as the obvious short-term benefits of alleviating the situation you are currently in. Always be measured and fully aware of the details before agreeing to a payday loan.

About admin

Check Also

Secured Personal Loans: Constructive Structuring for Financial Success

Credit relationships inside a social system form a complicated web which extends through the financing …