There are a number of ways that can help support you in the process of being successfully accepted for a payday loan.
There is never a guarantee that you will be approved for finance, notably including payday loans. It is certainly not a black and white process, and there are a number of factors that will determine a payday loan lender’s decision on whether to approve or decline an application.
This article will outline the top ways that you can follow in order to improve your chances of being approved for a payday loan.
What is a Payday Loan?
A payday loan is a short-term, high-interest monetary loan and takes place between a lender and a borrower. This usually occurs when the borrower is unable to seek this amount from banks or credit unions.
The majority of payday lenders charge very high interest rates, and in some states, this amount that they charge is not regulated. If you are unable to pay back the loan on time, then you will be charged high interest rates until it is paid back, which can lead to spiraling debt in some instances.
What Steps Should I Follow if I Want to be Accepted for a Payday Loan?
1) Complete the Application Carefully and Accurately
An online application for a payday loan may only take a few minutes. As such, it is important to ensure that you do not rush the forms as it may be easy to make a mistake or input inaccurate information.
Prior to completing the application, ensure that you have all relevant documentation in front of you, including your bank details and credit history. When you have filled out the form, take some time to reread each answer before submitting. This is because one wrong answer may impact your entire chances of being accepted for a payday loan.
2) Be Honest with Your Answers
While it can be tempting to stray from the truth when completing a payday loan application, it can really impact your likelihood of being accepted – especially in instances where the lender has sought to cross-reference your answers.
Most payday loan applications will inquire about your current income and outgoings. Deciding to fluctuate or depreciate how much you earn may seem innocent, but can prove detrimental. If a payday loan lender then finds you to have lied, then it is highly unlikely that you will be accepted for a payday loan.
3) Choose Your Payday Loan Lender Carefully
The payday loan market is highly populated and can thus appear overwhelming to a prospective borrower. As such, it may seem easy to apply for the first one that you might find.
However, it is highly important to ensure that you have given yourself ample time and resources to shop around and choose a payday loan lender and plan that best suits you. Some might be more flexible than others and some may even specialise in provisions where the borrowers have poor credit finance.
4) Make Sure to Check Your Credit Score
Prior to putting in an application, it is worth checking your current credit score to see how likely an approval for a payday loan will be. This is because your credit score needs to be provided to your lender and if it is low, they may view this negatively and decide to reject your application.
If you have checked and your credit score is low, make sure to shop around and choose a payday loan lender that is more likely to approve you.
As always, it is important to remember that the higher your credit score, the more likely it is that you will be approved for credit.
5) Only Request the Amount That you Need, Not More
It may be tempting for some to apply for more money than you actually really need. As such, if you decide to borrow through a payday loan because you need to pay for something specific, such as an urgent medical bill or property issue, then you should only apply for the funds that you actually require.
The higher your loan request, the more difficult it will prove to get accepted. As such, keep your requested amount as low as possible in order to improve your chances of getting accepted for a payday loan.