Best cash advance lenders are very different from creditors. One of the biggest differences is the way they view a potential customer. A direct lender will take a look at what the applicant is doing now, where a creditor will look at what the applicant has done in the past.
Cash advance lenders current point of view
What is going on now? The present financial situation is a major factor in determining an approval for cash advance lenders online applications. A current bank statement is used to view how money has most recently been managed.
Take a look at your own bank statement. What does it tell you? What would a potential lender be looking for?
- Have there been overdraft fees? For you, it would tell you that you were not financially prepared for a given bill payment or that you lose track of how much you have in comparison to how much you spend. A direct lender will view overdrafts as poor money management. No credit check cash advance lenders will not be looking at your history of payments but the here and now. If you have overdraft charges, then this already risky loan will intensify.
- You may see that your money was deposited. A direct lender will not only want to see consistent deposits but many will look to see that income is being deposited directly into the bank account by the employer. Direct deposit represents a stable job and scheduled deposits. When an individual takes their own paycheck to the bank, it may be a few days in between the pay period and when the bank trip is made. The loan is already risky, the last thing either party needs is that life was too busy to make it to the bank. A good lender will look for direct deposit to not only protect their payment but also keep you from additional overdraft and insufficient fund fees.
- What happens to the funds once the deposit is made? Do you see multiple transactions that use up the funds quickly or do bills get paid slowly throughout the month? A direct lender will be looking closely at these bank transactions. It helps to understand if a person comes alive on paydays or if there is a well-constructed budget somewhere. Having a stack of bills waiting for a paycheck is a bit alarming to a direct lender since the due date for a short-term loan will be scheduled around the deposit as well. The expectation is to pay the loan in full plus fees. This amount may take a good chunk out of your paycheck. Who will end up being paid first and what will happen to the rest of the pay period when all the money was gobbled up in just a few days.
There is a lot to be learned through a bank statement. Creditors focus their attention on the past seven years and don’t consider how finances may have taken a turn for the better in the recent months. It could be the opposite as well. A person could have great credit but have recently seen finances take a plunge due to loss of job, death in the family or injury. The past seven years of credit history will not reflect the current situation to a credit card company. Obtaining a new card with current problems could create fast problems.
Short-term loans continue to use the present situation. Online cash advance lenders will pay attention to the current financial situation when approving a loan.
