What Qualifies You to Avail a Payday Loan?
The world we live today consists of various problems that affect the livelihood of thousands. Bankruptcies of jobs-providing industries are happening even in countries with stable economies. Shut-downs have increased the number of jobless people and this has created a domino effect on the ground. Hardest hit by this catastrophe are the working class whose meager income is being eaten up by spiraling costs of products. The problem exacerbates when unemployment abounds because of the massive lay offs or closing down of many businesses. But during these financial troubles, there are businesses that see an opportunity. The business offering short term loans to help those who are in direct financial trouble. One kind of credit extension is a payday loan. This loan processing venture has caught the patronage of many borrowers, notably among poor communities.
This kind of personal loan is simple to avail. Those who have computers at home and are hooked to the internet can apply for this loan without leaving their homes. The first thing you have to do is to search for payday loan lenders on the Internet and prepare a list together with their respective terms and conditions and other relevant data that you may need in making a comparison. Study the list you have made and decide which among these lenders you will apply for a payday loan. Please, take note that the payday loan websites are either direct lenders or brokers. These two are different companies that are both offering the same payday loan services. However, the latter is an agent of the former and for that reason your application will definitelytake longer to be approved. At any rate, focus your attention to the requirements first.
The requirements
Your efforts and expectations will be in vain if you fail to meet or even fully comply with the requirements. In studying which lending company you will apply with, see to it that the documentation that they require is within your ability to provide. You will just waste your time accomplishing the application form if one of its requirements can’t be satisfied. While there are variances on the documentary and information required by payday loan lenders, normally they have similar information needed to be filled up in their application forms. In the US and the UK, the following information is required to be supplied by the applicant-borrower.
- Age – the borrower should not be less than eighteen years old at the date of filing.
- Residence – the residential address you declared must be existing and verifiable.
- Citizenship status – you must be a citizen of the country at the time of your application.
- Proof of employment – you must be employed for the last 90 days and possess the proof that you are employed. Contact numbers of your employer are sometimes required or a copy of your employment record or pay slip. Some lenders accept applications from unemployed provided they can show proof of steady or regular sources of income.
- A valid phone number – the phone number you provided must be in service.
- An email address – this must be valid and existing if required.
- Bank account – you need to have an active bank account where the proceeds of the payday loan can be electronically credited. If the bank account you supplied in your application form is inactive, you will encounter problems when your payday loan is deposited to said account. This is your lookout, be sure it is in active status.
How much is the payday loan principal and interest
In the United States, it varies according to limitations imposed by the specific states where you apply for the payday loans. Normally, the amount is at $300 minimum to a maximum of $1,000. While in the UK, lenders of payday loans are offering their services from 500-2000 pounds sterling. The annual percentage interest or APR in the United States is between 36% (for military personnel) to 460% like in California. The APR varies on a state to state basis. In comparison, the APR in the UK has no limits. There are lenders who charge 2,214% in APR. But despite this seeming negative feature, payday loans are still frequently availed in both highly developed countries mentioned.
If you are a citizen of any of these two nations, the choice of the payday loan lenders is in your hands. See to it that you have made a careful study before submitting that application form with a simple click of your mouse.
