Sabtu, 17 November 2012


Direct Payday Loan Lenders Seek Certain Qualifications for Loan Approval

How do payday loan lenders look at your application? Does it differ from how other lenders look at them? Today, people have a better idea of what important points they can work on in order to make the application process much smoother.


The application form for a direct payday loan lender does not have a lot of information requested on it. There is your personal, employment, reference contact information and of course a bank statement which you will need to provide. A payday loan lender is looking for:

*proof of employment

*a certain amount of income as compared to the loan amount requested

*a well-managed bank account

*correct contact information

Working with a low cost payday loan lender is pretty easy as compared to others. Getting an online payday loan is a good option for those who do not have good credit. No credit checks make payday loan lenders more available to many people who are struggling with their budgets.

Other lenders want the same information as a payday loan lender, but are also going to collect the data provided by a credit score and all its history.

Deciding points for a regular lender:

*What is the capacity to repay the loan? Is there a steady job or alternate source of income coming in? How many other loan payments are there and how much are they. Is the income enough to cover these other creditor payments and take care of regular life expenses? Debt to income ratio is a big factor with most lenders. Long-term payments have too much room for problems to step in. Month after month of making payments which take up all the income does not leave any room for unexpected costs and that will hinder a lender approving a loan.

*How is your credit history? Do you have other creditors? How has been your money management with them in the past? These lenders are looking for proof that you can pay bills on time to your creditors. It does not look favorable to any potential lender who checks your credit history to see complaints about late or no payments.

*Some lenders will look for collateral or capital to back your loan. What property or assets could they seize as a secondary source of payment? A home or car, a secondary source of income or maybe a fixed deposit will be requested to support any loan transaction. Some lenders will ask that you have a second person with better credit than yourself to be a secondary signer for the loan.

*Your credit score is another factor which can reflect your financial position to possible lenders. Three credit bureaus will report scores within which will fall in a certain range. This score is a calculated number between 300 and 900, based on a secret algorithm. Some aspects are known and can be improved upon by the individual, but the exact figuring is not public knowledge. Payment history, current balances and potential balances, how many new inquiries there have been are all controllable aspects to your credit score.

When you know your credit standing, it will help you make better decision as to where you can go for help and how you can run your finances more efficiently. A payday loan lender will help when others turn their backs.

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