As the online payday loan business grows, borrowers are finding more and more money options to access quick cash. Pawnshops and car title loans have joined the online business as well. It doesn’t take much to find a company wanting to help. When working with responsible lenders of any kind, there will be specific qualifications which must be met in order to approve a loan application. Pawn brokers and title lenders will base their approval and loan amount on the value of the property, a payroll advance lender will look a bit deeper into an applicant’s money management.
Most online direct lender sites will list basic qualification standards to give an applicant an idea of what it takes to qualify for a loan. Basic qualifications would be: age, residence, what bank your account is with, military status and employment. Responsible lenders will look more closely.
No credit check payroll advance applications work with good standing bank accounts.
Bank account status –Does a statement show good standing? Are there signs of overdrafts or other payroll advances currently out? Is the paycheck directly deposited into the bank account? How is it managed once it is there? A trained loan processor knows what to look for in a potential borrower. Direct lenders want to work with someone who manages their money well. Bank accounts with signs of distress stop an application in its tracks. Without a formal credit check, it is the only way to view money management skills.
Paycheck details – Once it has been determined that the applicant’s paycheck is directly deposited into the account; it is time to look at more details. What is the applicant’s pay cycle? How often do they get paid? How much do they make in a month? A direct lender should only process a loan for a fraction of what the person makes. That fraction varies from one lender to another. The better the lender, the smaller the amount approved. Loaning too much money will place a burden on the borrower’s budget come payday. Some applicants don’t think of the after effects when seeking emergency cash. It takes a responsible lender to make that call.
Other income – Since a direct lender will look at your total monthly income, other income will also play a part. Some people are not employed but receive a pension, Social Security or disability. Direct payroll loan lenders will count ‘other income’ that is permanent. Unemployment or temporary disability will not fulfill the loan qualifications. Child support is something else that cannot be counted.
Alternative money options are opportunities for credit challenged borrowers to get help. There is no promise that an application will get approved. If your application is denied, call the lender and find out why. It could be something that you need to fix or give you an assessment of what criteria need to change. Don’t seek out a lender that will accept your application anyway. You could potentially end up working with a lender that doesn’t take your best interest to heart. Qualifications are there to protect both borrower and lender and must be respected as such.
