Do I need a Good Credit Rating for a Payday Loan?

I have bad credit, can I still get a payday loan?

With the ongoing credit crunch in the United States, more and more people are looking for other ways to borrow the money they need. Payday loans are an increasingly popular option for many consumers, but some wonder if they have the credit score necessary to get approved. Guess what? No matter what your credit score is, it’s good enough to get approved for a payday loan right now! That’s because unlike almost every other type of loan out there, payday loan companies do not use credit scores as a determinant for lending approval. You can have bad credit, great credit, or no credit at all and still easily take out a payday loan. What’s the catch you ask? Believe it or not, there really isn’t one! Of course, there are some other requirements you must meet in order to get approved for a payday loan, but this industry has always been about ease of use and the approval standards definitely reflect that.

How are Payday Loans Approved?

So how do payday loan companies decide whether or not to approve you for a loan? Rather than demanding your credit score stands up to an arbitrary figure, payday loan lenders use your income as the primary factor in approval. For most lenders, you need only have a job that provides a regular source of income of at least $1,000 a month. Typically, all you have to do is supply your lender with proof of your employment and income, usually with one of your check stubs. Some companies may also ask that you’ve worked with your current employer for at least 3 months, ensuring them that you have the job security to get your loan paid off. Of course, the more money you make, the more money you can borrow in your payday loan. Now, not everyone earns their money through an employer, some may receive money from government assistance or social security. Not to worry, you can still get a payday loan - all you have to do is provide proof of this income through financial statements. As you can see, the income requirements for a payday loan are pretty simple and most people should have no trouble meeting them. If you can meet those, chances are you meet the other minor requirements as well.

Other Payday Loan Requirements

• For many lenders, especially those that conduct their business online, you must have a bank account in your name. Whether it’s checking or savings, most lenders ask that you have a bank account that they can deposit the loan into.
• Lenders require that you are at least 18 years old and some prefer that you are at least 21. Not only is it the law, payday loan companies probably wouldn’t feel comfortable lending large sums of money to minors.
• Finally, most payday loan companies will also ask you to provide proof of your identity. Usually, that just means having a valid driver’s license.