Payday Loans

What Are The Eligibility Criteria To Obtain A Direct Deposit Payday Loan?

As the term suggests, a direct deposit payday loan is just like any other cash advice that payday lenders offer; the only added feature here is that the money you borrow is deposited directly into your bank account. Due to this, the process here is much faster. You can get access to the borrowed money more quickly. Following is a brief rundown on some of the basic qualifying requirements that you fulfill in order to

You Must Have A Regular Source Of Income

If you do not have a regular source of monthly income, it will be very difficult for you to qualify for a direct deposit payday loan. Your employment history and the current employment status play a very important role in this regard. If you are currently unemployed, very few lenders will be interested in lending cash advance to you regardless of how good employment history you had. However, some lenders require you to just have a source of regular income; you do not necessarily have to be employed. For example, if you are receiving alimony payments in regular monthly installments, some lenders will offer you a payday loan on that basis. But, you will be required to provide sufficient documents in proof of regular alimony payments. However, child support payments are usually not treated as your income because you are receiving that money to take care of the financial needs of your child.

Bank Account

If you do not have a bank account in your name, you cannot qualify for a direct deposit payday loan. Most lenders will require you to have a checking bank account where your monthly pay check gets deposited every month, but there are several other payday loan companies also that will readily approve a cash advance to you even if you just have a saving bank account in your name. A regular source of income is something that lenders look out for when they have to determine the eligibility of an applicant to borrow payday loan.

Documents Submission

Though most payday loan lenders claim to offer loans through a completely paperless process, where you do not have to submit or fax any documents, this is not practically true in most cases. A legitimate, reputable lender will always ask you to submit or fax some basic documents, such as in proof of your current employment, proof of regular monthly income, your bank statement for the last six months and your bank account number. Therefore, if you are considering borrowing a direct deposit payday loan, make sure you have all these documents ready. Beware of those lenders who ask for other confidential details, such as your Social Security Number, your bank account password or credit card details. These types of information are not required to obtain a payday loan. The lenders who ask for such private details are actually identity thieves and frauds.

Approval On Phone

You are also advised to be very careful while you are dealing with lenders who claim to approve your loan application just through a phone call. Never sign up for a verbal offer, as they are usually scams. As per the laws, legitimate lenders must provide you a written loan contract, where all the terms and conditions of the loan must be explained clearly. Therefore, while you are looking out for a direct deposit payday loan, avoid all those lenders who are willing to offer you a loan on phone. They usually try to gather some crucial pieces of information from you so that they can perform identity theft.

Your Ability To Repay

Last, but not the least, while you are doing your research to find out your eligibility for a direct deposit payday loan, you must look at your own financial condition as well. Look at the rates and other fees that lenders are charging. These types of loans are usually very expensive, where a $100 of loan can cost you over $160. Failure to make the repayment on the agreed due date will push you into a serious debt problem, as the outstanding balance on these loans grow at lightening speed because of the extremely high rates that lenders charge on these loans. That is the reason why financial experts and even the FTC as well as state governments have warned consumers against these types of loans. So, you are strongly recommended to avoid these loans and look for better, cheaper alternatives.

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One Response to “What Are The Eligibility Criteria To Obtain A Direct Deposit Payday Loan?”

  1. John says:

    Direct Deposit pay day loan is similar like other pay day loans the only difference is that by opting this, you will get the money directly deposited in your bank account. If you are planning to get such type of loans, you will have to fulfill some very easy eligibility criteria. Your source of income can play a lead role in getting you these types of loans. Your regular source of income is the most important thing if you do not have it then it will be very difficult to qualify for such a loan. Some lenders can offer you a loan on the basis of alimony payments if you are getting. Next thing is you have to provide a checking bank account where your monthly salary gets credited if you do not have a checking bank account you can find some lenders who can offer you loan on the basis of your Saving Account and with the proof of regular monthly income. Some lenders can offer you to provide a loan approval via phone without submitting any documents which may be a risky job to accept because there are so many fake companies present in the market that’s why it is very important to look the company’s past records and gentility before signing the contract with the company.

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