Are You Eligible To Get a Payday Loan?

payday loans eligibility

Payday loans can be a solution of an unexpected financial crisis. These loans are issued for clients even with lower credit scores. Besides, every person can get borrowed funds in their account in as little as 24 business hours. Though these small credit options are easy to apply with almost instant funding, it is useful to know the requirements and lending standards to determine if you are eligible for a payday loan. We recommend you to get acquainted with as much details about payday loans as possible here – The information is provided free of charge. It will be useful to know whether you are safe taking out an online loan.

Run though through this review to realize what are payday loan eligibility criteria. It is necessary to determine if this type of loan suits you.

Common payday loan application requirements

Either submitting an application online or in person, you will need to fill in the following fields:

  • driver’s license or other government-issued ID;
  • certificates of employment or income;
  • phone number;
  • email address;
  • bank account information.

This information will help confirm that you meet the basic requirements to qualify for a $500 payday loan. The most common requirements include:

  • the age over 18;
  • being a US citizen;
  • a resident of a state where payday lending is legal;
  • currently employed with a steady income;
  • active phone and email.

If you submit an application online, you may need to have access to a scanner or fax device to provide original documents. Alternatively, some lenders will allow you to take a photo on your mobile device.

Payday eligibility variations by US state

The requirements to issue a payday loan may vary from state to state. Some states have strict regulations in relation to payday lending that might affect your eligibility. Here are 3 payday lending regulations that are state-dependent:

  1. States where payday loans are banned – Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and West Virginia.
  2. States with a limited cap – Washington, California, Nevada, Oklahoma, Kansas, Nebraska, Missouri, Iowa, Wisconsin, Illinois, Tennessee, Kentucky, Indiana, Michigan, Florida, South Carolina, Virginia, Delaware, Rhode Island, New Hampshire, and Hawaii.
  3. States where loan rollovers are banned – California, Florida, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Montana, Nebraska, New Hampshire, New Mexico, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia, Washington, and Wyoming.

Credit history requirements for payday loans

There is no definite credit history requirement to become legit to get a $500 payday loan. Each lender will set a limit to get approved, but there are a few credit issues that are likely to be problematic with all lenders:

  • outstanding loans;
  • multiple delayed payments;
  • recent repossessions or foreclosures;
  • recent bankruptcy.

Your report is unlikely to be the cause you are denied a short-term loan even with current credit issues. Most lending services have greater interest in your employment place and income stability. If you do not have a stable source of income, you may be required to provide extra financial eligibility certificates.

This may include:

  • checking account history;
  • sales vouchers;
  • your tax return copy.


If I am denied a payday loan from one lender, should I apply through another lending service?

Yes, you should. Some lending services will have more loyal requirements, so it is reasonable to submit your application through another service.

Is a bank account required for a payday loan?

Typically a bank account is mandatory to issue a payday loan. The amount you should repay is often auto-deducted from this account on your due date.

Can I get a bad credit payday loan?

Yes, you can. Payday lenders have more loyal credit requirements than other lenders. Your job stability and current income rate is a much bigger factor in the final decision.

Should I have a cosigner to issue a payday loan?

No, you shouldn’t. Payday loans are unsecured ones. It means that the borrower does not have a cosigner, collateral, or a first instalment. Instead, the repayment of the borrowed funds is conducted through the direct connection of a bank account to guarantee that the lender will receive their cash.

Can I get a payday loan if I had delays on a prior loan?

It is absolutely possible. If the delayed loan has been paid back, it is less likely to influence your approval rates. If you have a loan that is currently outstanding, that is more likely to cause the denial.

Why do lenders check my credit rating?

Payday lending is a business. As a result, lenders waste money if they approved every loan request. Your credit rating make a lender aware of any major delays on your repayment history. These points can help a lender manage the risk by disapproving such applications.

Will a payday lender contact my employer?

Payday lenders will not contact your employer to confirm your solvency. However, if your loan is overdue, they may contact your boss in attempts to reach you.

Category: General

Tags: finance, online loans, online service, payday loans