Individuals ‘strapped for cash’ are the stereotypical online cash advance lenders best customers. Great customers are not necessarily those who are desperate or vulnerable to financial situations. In order to be a good customer, the loan must be paid off. It may not be a perfect payoff, but done in a reasonable amount of time.
What do cash advance lenders look for in a great customer?
Income
Best cash advance lenders online evaluate applications. The old standard thought that anyone can get a short-term loan is just not true – at least not with a responsible lender. Predatory lenders who thrive on a customer’s vulnerabilities may just accept whoever applies; but for a typical online direct lender, there are qualifications which must be met.
A person’s income is used to base the actual loan amount. Since your next paycheck is targeted for a full payoff of the loan plus fees, a direct lender will want the borrower to be able to afford the bill. Without a credit history check, the lender will only have this income to go by when approving a loan. The bank statement will give the lender an idea of how many other bills are being paid throughout the month, but the deposited income is key to short-term loan affordability. The actual loan amount approved will also depend on any state regulation. The borrower will have to be responsible themselves when applying for a loan. The amount must be an affordable cost in order for to be of any real financial help. Sinking further into debt troubles with a short-term cash online lender is disastrous.
Short-term loan history
With no standard credit check, a borrower can hide problem debt areas. Now, the direct lender knows that the average borrower has debt problems. Most people don’t choose an online loan over credit cards. It is safe to say that the majority of applications come from those who are credit challenged. What a direct lender does look for in an applicant is one that has a positive history with cash advances. If you have recently gone bad on another short-term loan, chances are that a new lender would not want to work with you. Responsible lenders will not want to add to the already high risk activity involved in the direct cash advance industry.
Working bank account
With online lending, it is important that an applicant have a good standing bank account. Whether a bank statement is sent in or Decision Logic (online viewing access) is used, a direct lender will want to verify that the bank account is in good standing. The account should be running long enough to have your employer set up direct deposit and show a history of those deposits entered electronically. The cash advance online lender will also want to see your account clear of returned checks, NSF fees, and overdraft charges. If you can show that you manage your finances well, the direct lender is more apt to approve a short-term cash advance loan.
Before you set your sights on applying for an online loan, take a few moments and view your application from the point of view of the lender. What do you see, what does it mean and how can you improve your chances at getting your emergency loan approved? If you choose to work with a predatory lender then you won’t have many worries within your application. Don’t be surprised if you hit some bumps along the way if you do choose that avenue.
Just like any other money opportunity, take a few moments and find a responsible cash advance direct lender in order to insure the great loan experience possible. It the company happens to turn down your application for fast cash, find out why. Some lessons are learned the hard way, but if it makes your finances better in the long run, make necessary changes.
