3 tips to get payday loans accepted the first time you apply
Each year, approximately 10 million Americans apply for a payday loan.
That's 10 million Americans who need money fast to pay off a debt, pay for a divorce or medical bill, take care of a car repair, or deal with some sort of other short-term, emergency issue.
As you can see, payday loans are a pretty awesome solution for anyone who finds themselves in a bind for cash.
But, there's one problem - not everyone gets approved for a payday loan. Just like any other type of loan out there, a lender can easily reject your payday loan application.
How do you make sure you get your payday loans accepted the first time around?
Check out this guide to learn the top tips to ensure your payday loan gets accepted the first time you apply.
1. Report Your Income Accurately
Payday lenders require that you meet a minimum monthly income in order to qualify for a loan.
Typically, this income is $1000. Some lenders will even require that you show proof of meeting this monthly income for the past three months.
Many people, whether they are shy of $1000 or are a decent amount over it, think it's a good idea to exaggerate their monthly income in order to better their chances of qualifying for a loan.
We're here to tell you that this is never a good idea. Lenders will get to the bottom of your monthly income, and if they find out that you've lied, you're most likely going to be rejected.
2. Keep the Debt to Income Ratio In Mind
When applying for payday loans, it's very important to keep the debt to income ratio in mind.
In other words, if you currently make $1000 per month, no lender is going to approve you for a $1000 payday loan.
Your chances of getting approved for a loan will increase if you request just a fraction of your monthly income.
So, if you're making $1000/month, you shouldn't apply for a loan that's higher than $500.
3. Have a Good Credit Score
All lenders, whether they are payday lenders or not, run credit checks on their potential borrowers.
They do this even if they advertise that credit scores or credit reports don't matter.
Therefore, if you want to increase your chances of getting your payday loan approved, you should keep an eye on your credit score. The higher your credit score is, the better chance you have of getting approved for your loan.
If your credit score is at 770 or above, you are in excellent shape for having your loan approved. If your credit score is around 700, you're still considered to have good credit. 640 is considered fair credit, and 500 is considered bad credit.
If you're in the 500-640 range, you may want to look into bumping up your credit score before you apply for your loan.
Are You Ready to Have Your Payday Loans Accepted?
Getting your payday loans accepted isn't impossible, but as you can see, there are several things to keep in mind.
If you have any questions about applying for a payday loan, please let us know in the comments below.
And, if you're stressed about applying for your payday loan, be sure to check out this guide on getting back to nature as the ultimate stress buster.
