What Payday Loan Lenders Need to Approve Borrowers

In the current economic situation where many people are living from hand to mouth, the need for borrowing money is not unusual. Seeking payday loans has become routine since many people routinely have no savings available and yet there are many unforeseen immediate financial needs that do occur. The following are the main considerations which payday loan lenders require from borrowers.

Age limit: These loans involve signing a contract such as the date of payment and the rate at which the loan shall be repaid. This means that the borrower will have to be at least 18 years of age. No one below this age is allowed by law to sign contracts without a guardian. Unfortunately, many pay day loan lenders do not provide the option of third parties.

Account: You will need to have a checking account or any other means through which you will be able to access the cash. This is also the guarantee of repayment for the lender so lenders will requires access to your account. The main method used is depositing the cash in your checking account.
Stable income: You will need to prove that you have a source of stable income. This can be done through provision of the employment records or regular income details for at least six months. Since there is no guarantor, credit history or collateral required by the lender, proof of stable income is essential as it shows that you have the ability to pay the debt.

Fees: Fees are based on the amount borrowed and the time that the loan is needed. Therefore, fees are calcualted on a base amount with additional charges assessed if other conditions come into play.

Income potential: The amount of money earned at the end of the month determines the amount of cash offered. Many lenders require borrowers to have an income of more than $1000 to be eligible; although competition has sometimes forced other lenders to lower this minimum income further. Conduct your research thoroughly on the minimum amount of income required and the maximum loan you can get according to your debt servicing ability. Payday loan lenders offer full disclosure of any additional requirements.

Author: Parker

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