No credit checks is not the only feature which consumers and borrowers are looking for, while searching for payday loans. A borrower is usually required to provide additional information when applying for a payday loan. Payday loans with no credit checks are beneficial to assist consumers who need money prior to payday with fast and hassle-free approval.
Many consumers run out of money prior to payday for various reasons. Perhaps they had some unexpected bills to pay for or the timing of their paycheck does not coincide with the due date for their utility bills. Emergency medical bills are often a surprise for many people. Whatever the reason, a pay day loan can be a useful tool to help manage your cash flow to meet those unexpected cash needs.
What Information Do Pay Day Loan Companies Need
Each company may have different requirements. Generally they need to see a copy of your last employment stub to demonstrate your level of income and to establish when your next pay check will be. They will typically base the payday loan on your regular income and not include any overtime or other special payments that you might have received. Your last pay stub will show all of this information and help the lender establish how much to lend you.
They will also want a copy of your latest bank statement. There are a couple of reasons for needing to provide this document. Many lenders have moved into the age of electronic transmission of money to and from bank accounts. The loan will be transferred to your account and they need to make sure that the account information including the transit number, the bank number and your account number are correct. They also want to establish that you have not processed any checks during the last month and had insufficient funds in your account. Some payday lenders will shy away from customers who wrote checks with insufficient funds in their accounts. This demonstrates that you may be the type of person who either cannot manage their money or you intentionally wrote a check when you did not have the cash in your account. This is a strong negative for many lenders.
The last piece of information is a personal check with your account number and address on it. This check will be used to withdraw the funds from your account on the day you are paid. If you do not have a checking account then they can still help sometimes and most companies will suggest that you give them a call to discuss your personal situation in more detail.
How do I know If I Qualify for a Payday Loan
Again the qualifications will vary by company and also were you live. There are various laws in place that affect what rules and regulations payday loan companies must follow. Most companies will require that you have employment income and you have a bank account. Your income is used to show that you have income to pay a loan off in the future and a bank account as mentioned earlier for deposit and withdrawal of the loan proceeds.
In most states and provinces, borrowers must be at least 18 years of age, although you need to check with a payday loan company in the state or province where you live for the exact rules. Some locations are prohibited by law to lend money to anyone less than 21 years old.
How Much Can I Borrow
The amounts vary and will always be a percentage of your paycheck. Usually it will be in the range of 30% to 50% of your paycheck up to a maximum amount. Once a client applies either online or by walking in to a payday loan store, the lender will let you know how much money can be loaned. At that point clients can either decide to proceed with the loan or reconsider. All fees and interest rate costs will be also fully disclosed at that time. Payday loans can be expensive when you add in the fees and the interest rate that is charged. Borrowers will have really significant emergencies that justify the borrowing of money for a payday loan.
Managing Your Cash Flow
While pay day loans are expensive, many people all over the country take out pay day loans every day. They run out of cash and for whatever reason cannot wait until their pay check arrives. They need the money now and the only way to get any cash for people in this situation is to turn to pay day loan lenders.
Whether you realize it or not it is about cash flow and being able to manage your cash to get you and your family through to the next paycheck. Whether it is a paycheck from a job or a government check, it really does not matter. Many people who receive government assistance only get paid once per month and it is really difficult for consumers to manage their cash flow to get through to the end of the month when they receive their government checks.
If you find yourself in the situation of using payday loans, then you already know just how much it is costing you to use this service. You also know what other information is required to support your pay day loan approval. You may have already decided that you somehow want to get out of this cycle of using payday loans or at least qualifying for loans that cost a lot less.
The answer to removing yourself from this cycle is really all about managing your cash flow. If you can set a budget that balances your income and expenses you are one step towards managing your cash flow. If you can also set aside a small amount for emergencies each week or each month which you do not touch unless you have a real emergency, then you have made another significant step towards balancing your cash flow and becoming independent of pay day loans. In fact you will even be able to give yourself a raise from the fees and interest you no longer have to pay. There will be times when you will still need a loan of some kind, whether it is a payday loan or a regular loan to deal with financial requirements that you have, but at least you are on the right direction to managing your cash flow.