Ten Standard Requirements for Obtaining a Payday Loan

Published: 15th June 2009
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Payday loans are a great way to receive cash in a pinch. One of the nicest benefits of payday loans is that consumers can get them, regardless of their credit history.

Although credit is generally not a consideration when applying for a payday loan, there are other requirements that must be met before a borrower can receive money through a payday loan company.

General requirements for a payday loan are easily met by most borrowers; therefore, they usually do not present a problem for most borrowers.

Minimum requirements may vary slightly between payday loan companies, but there are certain universal requirements that are found at most payday loan companies:

1. The borrower must be 18 years of age to receive a payday loan. This requirement is a standard throughout most payday loan companies. Since a payday loan is a line of credit, it therefore only makes sense that a borrower must meet the minimum age required by creditors.

2. The borrower must be a U.S. citizen and be able to provide both a proof of residency and a proof of identity. Most payday loan companies will decline a borrower's application if they are unable to verify either of these requirements.

3. The borrower must have a full-time job. The details of this requirement may vary, but generally it prohibits any temporary service income, disability income or welfare income. Some payday loan companies offer payday loans for individuals who collect disability income, although the fees may be higher.

4. The borrower must be employed for a certain amount of time. Most payday loan companies require that a borrower be employed for at least three to six months, although this requirement varies from company to company. The employment time requirement assures payday lenders that the borrower will continue to earn steady income so that he or she will be able to repay the loan.

5. The borrower must earn a minimum amount of money each month. Again, this amount varies between payday loans companies, but a general figure is around $1,000 per month after taxes. This requirement further guarantees the borrower's ability to pay off the payday loan.

6. The borrower must have an active checking or savings account. In addition to having an active bank account, the account must be in good standing.

7. The borrower must have a checking or savings account for at least 90 days before applying for a payday loan.

8. The borrower must show a 30-day bank statement to provide proof of income. If the borrower's paychecks are not direct deposited, he or she must then provide a copy of a current paystub or other verification of income.

9. In addition to having an active bank account, the borrower must not show any unpaid checks on the account.

10. The borrower must not have any outstanding payday loans. This requirement does vary between payday loan companies, particularly for those companies that offer debt consolidation loans for payday loans.

Learn more about how payday loans can help you through any financial difficulty. Take advantage of PayDayOne's no fax payday loans to quickly obtain the funds you need before your next pay check arrives.

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