One of the easiest ways to quickly get out of financial restraint is by applying for a payday loan. But do you qualify for a payday loan?
You might have been planning to go for a payday loan, but haven’t considered knowing whether you are a qualified candidate for a payday loan.
Some people actually think it’s easy to apply for and get a payday loan. Some people still think that the best option is to get bad credit loans when in a financial difficulty and even with a poor credit history.
However desperate you might be to get a payday loan that can help you get out of your financial mess, you still have to know whether you are qualified for one before you go ahead to apply.
SEE ALSO: Payday Loan Alternatives To Consider In Financial Difficulties
How to know you qualify for a payday loan
Before you make the decision to register and apply for a payday loan (which could also be done via the internet), you should first of all find out whether you qualify or meet the criteria.
The idea is to make sure that, gauging yourself by the points I’ll be sharing below, you are eligible for a payday loan.
#1]. Your residential setting
Being a resident of the country in which the payday loans company you want to apply for operates is a very important factor in qualifying a payday loan applicant.
If you don’t reside in the country the payday loans organisation you are looking forwards to getting a loan from operates, your chances of getting on their list are thin.
For instance, if you are planning on getting a loan from Open door and payday loans in the UK, you must be a UK resident. That, otherwise, disqualifies every other candidate that is not a resident of the UK from being able to get a loan from them.
#2]. Employment
Being employed is another factor that can help you bag a loan from the payday loans company you are planning to get a loan from.
While you might not need to be super rich before you are given a loan by most companies, you must be an employee before applying for a loan from most companies.
Being employed gives the company loaning you their money the assurance that the person they are lending their money to is guaranteed to pay them back. But if you are unemployed, you might not be able to get a loan through an open door payday loan.
Being self-employed does not substitute for being employed by an establishment when getting a payday loan is concerned. The program is meant for standard salary earners and not businessmen/women.
#3]. Your earning power
When getting a payday loan is concerned, another thing that comes to play is your earning power. As a salary earner, before you qualify for a payday loan in the UK, you must be earning nothing less than £750 as your monthly basic salary.
But the advantage of a payday loan is that you can get a loan of up to £1000 even if you are earning only £750. If you are not earning up to £750 as your monthly wages, you might not stand a chance to get a payday loan.
#4]. You might have to be earning £750
Well, that is because the payday loan lenders loaning you would want to be assured that they’ll get their money back at the time you promised.
While, most payday loan companies are not motivated by profit, they want to be sure you as a lender are capable of returning their money to them. This also makes your chances of getting another loan from them broader.
I think Payday loans should be avoided at all costs – the interest rates are generally horrible. We are lucky to have an overdraft line with our credit union that costs just a few cents a day. Although I hate paying them a buck or two for interest when we use it, it’s sure better than giving them 30%. Great post!
Sen. Warren says one way to address the #payday loan issue is to look at small-dollar lending through post offices
I guess they are called payday loans for a reason; because they are meant to tide you over until your next payday. Thus, it makes sense that one of the prerequisites is that you must be currently employed. I try to stay on top of my bills, but unexpected surprises can occur at any time, and I’m grateful that there is an option for me if it gets to that point!
I’m thinking about getting a payday loan but want to make sure I qualify. Thanks for the information about how being employed is a factor for getting a loan. Something to do is to get a loan that you can pay back.
thank you for useful information, in my country – georgia
aren’t these kind of useful information about loans.
i can say you thank you, because of this great information.
Before considering a Payday loan, if you need money now then why not check out a list a friend put together of some payday loan ideas?
LSrsQt My brother recommended I might like this blog. He was totally right. This post truly made my day. You can not imagine just how much time I had spent for this info! Thanks!