Fast Financing: 5 Tips for Getting a Payday Loan Approved
Tuesday, June 6, 2017, 6:00 AM | Leave Comment
An occasional payday loan may be your ticket to affording an unexpected bill, taking a needed vacation or paying for a wedding.
Rather than taking out a personal loan that you may have difficulty being approved for, you may try a payday loan office either in person or online.
Payday loans are often easier to get because they are not for as much money as are personal loans. Plus, since many of them need to be paid off shortly after you get your next paycheck, you will not feel as if you are saddled with endless amounts of debt.
Here are your top five tips for getting approved for a payday loan right away and with as few problems as possible.
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Increase Your Credit Score
To be approved for the majority of payday loans, you will want to raise your credit score to good or excellent ratings of 700 or better.
Plus, increasing your credit score can win you lower interest rates on any loans you receive.
Raise your score by continually paying bills on time, paying at least the minimum amount required and lowering your debt to credit ratio.
If you do have a negative hit on your credit scores, such as a late payment, you could consider waiting six months or more before applying as most minor negative reports go off your report quickly.
However, major events, such as bankruptcy or foreclosure can negatively impact your report for up to seven years.
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Search for the Right Lender Based on Your Score
When you apply for a payday loan, you will only want to apply for a loan for which you believe you will be approved.
Applying for loans that require excellent credit when you only have average credit can actually do more harm than good because each loan application dings your credit score a bit.
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Request the Right Amount
A payday loan lender will only approve you for the amount of money that he or she believes you can easily pay back within the allotted time, which is usually a month for this type of loan.
They would never give you a payday loan for the same or close to the same amount that you make each month because the chance of them recouping this amount of money quickly is quite low.
Moreover, you may be able to score a better interest rate despite a bad credit score if you are requesting a low amount compared to your monthly earnings.
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Bring Proof of Income and Bank Account Info
When you arrive at the lender’s office, be sure to bring all necessary paperwork with you.
They will need to see some type of ID as well as information that shows that you have a steady income as well as a bank account.
Most lenders require a checking account and look well on individuals that have automatic deposits of their paychecks.
You will need to show proof of your job or of some other type of steady income, such as a pension or social security checks.
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Pay off Prior Payday Loans
It can be downright difficult to be approved for a new payday loan if you still have one or two loans outstanding.
Lenders will see you as a risk and will either deny your request or hit you with a major interest rate.
If you pay off your loans within the month, you can build a better credit score and improve your reputation with your payday lender of choice.
While a payday loan may not be the right solution for every situation, it can definitely help you meet unexpected needs for the month.
Be sure to keep up your credit score by paying loans back on time and by refraining from taking out payday loans that are close to the amount that you make each month.
With careful spending and wise decision making, you can certainly make the occasional payday loan work out well for you.
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