The great depression years of 1929-1940 and the financial crisis in 2008 until today is a nightmare to many people. The effect is more so devastating on the ranks of the jobless. In addition to the burden of finding ways to tie them over even on their basic necessities, their ranks competing for limited work have swelled. Finding a job is almost impossible with neither this shrinking opportunity prevailing in the market. This economic difficulty seems to continue without an immediate solution in sight. Even governments are in dire need of devising strategies in the form of dole outs and financial schemes to keep the problem at bay. The private sector has come up with various loan facilities; and foremost are personal emergency loans like payday loans with no bank statement required. These cash advance assistance are short term in nature, mostly payable within the next payday or a month after their releases.
Why a bank statement is not required by other payday loans?
Owners of payday loan companies have their own reasons why a bank statement is not a requirement for them to approve an application for bad credit loans. These reasons are drumbeating loans to its higher acceptance level among borrowers. Here are some of them.
- A bank statement is not the guarantee
A bank statement merely reflects the inflows and outflows of funds in an account. While the sources of funds would indicate a steady inflow, the disbursements or applications of the fund can not be controlled. Lenders of quick payday loans do not need theses bank statements if they are already assured that the borrower has no unpaid payday loans on the date of application and that the paycheck is sufficient enough to cover the payday loan extended.
- It is not conclusive of the ability to pay
While the bank statement reflects substantial receipts of funds for a certain period, it does not necessary follow that the funds would be steady and continue to come in on the specific dates when a payday loan matures. Lenders will have to conduct further verifications in order to arrive at a sound conclusion before they can rest their case on the matter. It is therefore irrelevant to require a bank statement in securing a payday loan.
- The bank statement itself needs further verification
Lenders would not rely on the authenticity of a document at its face value if it is used as basis in the approval of a payday loan. Since payday loans need to be acted upon favorably to remain competitive, time is needed to verify bank statements, unless of course, the bank statements are pre-confirmed. Nevertheless, the side of prudence will dictate that documents must be authenticated personally by the lender itself. This is one way to protect their interest to assure their collection success in cases where bank statements are part of their approval process.
- It just lengthens the payday loan process
Many direct payday loan lenders are of the belief that requiring bank statements as part of the loan processing only adds to the time needed to submit bank statements on the part of the borrower. If there is no need for it, better to not add it as a requirement. This will facilitate the early approval of the personal loan.
Ask your lender why they require a bank statement for loan processing purposes when you apply for a payday loan the next time around. They might have other good reasons why.