Payday Loan Requirements - What You Need to Know
If you find yourself short of cash, and your payday is still days away, your answer could be a payday loan. If you’ve never applied for a cash advance loan before, it’s time to educate yourself on the requirements.
You can apply for one of these short-term loans at a physical, storefront location, or through a lender on the Internet. The application process at each is slightly different.
Applying at a Storefront Location
You may feel most comfortable dealing with a lender representative face to face. After all, you are providing personal financial information, and you may feel this method is more secure. Others appreciate the customer service experience of knowing who they are working with. Most major cities will have fast cash lenders that you can frequent.
When applying for a cash advance loan at a storefront location, your will most likely be asked to complete an application with your personal information. This will include common items such as your name, name of your employer, address and phone number, etc. You will also almost always be required to provide these three items:
- Your social security number
- Proof of employment—one or more recent pay stubs
- Proof of an existing bank account—a bank statement with your account number on it.
Once you provide this information, the customer service representative will fax your information to their main branch. When your application has been approved, they will advise you on how they will disburse your money (either a physical check, or most likely a direct deposit into your bank account).
You will also be asked to make arrangements for repayment of the loan. Some stores will arrange to withdraw the money automatically from your account when the loan is due, others may accept a post-dated check for the amount due, and still others may require you to return to the store to make payment.
If you have a computer, laptop, or even a smartphone, you can apply for a cash advance online. This process is usually quicker, requires less paperwork, and offers the convenience of applying from the privacy of your home.
When applying with an Internet lender, you will likely be asked to complete an online application with personal information, just as required from a storefront location. However, you can normally apply by just providing your employer’s phone number and your bank account number. The lender can check these references without the need for additional paperwork.
You will usually know if your application is approved with one hour, and you can receive your money sometimes as soon as the next business day. The lender will also arrange an automatic withdraw from your account on the day your loan is due.
Storefront Locations Adopting New Practices
Many storefront locations are updating their practices to be more competitive with online lenders—meaning less paperwork and less time required for the entire process. If you prefer working directly with a person, check around to the different cash advance lenders in your area. There may be one that offers you a more convenient application process.
Terms Can Vary by State and by Lender
It’s important to bear in mind that lender laws vary by state. When applying for a loan you should ask about any requirements or laws specific to your state. Some states require payday loan lenders to offer loan extensions without additional finance charges—a practice that will benefit you, so ask if you think you will need this.
Each lending company will also have its own rules and requirements that you will have to abide by. It is important to know what these are upfront. If you have any questions, ask before you sign. And, just as with any other type of business, customer service experiences will vary widely. If you don’t feel you are receiving good customer service, you have the right to borrow from a different lender.