Pay day loans are short term loans that are offered by special financial institutions to cater to the unique needs of individuals from varying lifestyles who wish to get immediate funds for their needs. These types of loans allow the individual to make use of the money against the loan within twenty four hours of the approval of the loan. However, like any other short term loan, the rate of interest applied on these loans is high. This is the reason the applicants are advised to be vigilant when it comes to borrowing the funds against cash advance loans.
Some of the states have also imposed a limit that cannot be crossed by the pay day loans offering institutions when it comes to their rates of interest. Getting up to date information about state regulations and going rates will improve the applicant's chances to bargain a better rate of interest against their applied loans. These financial institutions have streamlined their procedures to conclude the processing of the loans within a few hours of receiving the copy of the application form from the applicant. In fact, these financial institutions do not even bother the applicants about providing elaborate proofs as they find out information about them through their own network of agencies.
Who can apply for the loans?
Unlike the traditional loans which have strict regulations when it comes to borrowing, the selection criteria for the applicants of the pay day loans is very simple and comprises of conditions like:
1. The applicant should have a verifiable job
2. The applicant should have a verifiable citizenship
3. The applicant should have a personal bank account
4. The applicant should be more than or of eighteen years of age
5. The unemployed applicants must have a regular incomes source
6. The applicant should have verified documents
Even those individuals who have been rejected for traditional loans due to a poor credit history can also apply for cash advance loans. In fact, those with poor credit rating can apply for the "bad credit – pay day loans" from these financial institutions. Also the individuals who do not have collateral and have been rejected by the traditional banks when they have applied for a traditional loan due to this reason can apply for pay day loans in a convenient manner as these loans to not require collateral at all.
On what basis can the loans be rejected?
Despite the ease and the convenience that these loans offer, the applications for pay day loans can be rejected by the financial institutions on certain conditions when:
1. Applicants have a history of paying by bounced checks
2. Incorrect or incomplete information is provided on the application forms
3. The inability of the applicants to fulfill the selection criterion
4. Applicants have a history of non-payment
5. The checking account of the applicants is not active / valid
6. The applicant has a history or pattern of abusing the cash advance loans and other related factors
7. The applicant has a history of bankruptcy
8. The applicant didn't fulfill the application form completely
What information will be required by the pay day loans offering institutions?
Pay day loans lending institutions will require basic professional and personal information from all its applicants. This information is collected using the application forms that include fields like:
1. Complete name of the applicant
2. Latest bank statement
3. Latest telephone bill
4. Recent pay-stub
5. The applicant's most recent and valid residential address
6. A voided check
7. A copy of the social security card
8. The applicant's current employment status
9. A copy of the applicant's state issued ID
10. The applicant's valid bank account
This information is verified during the processing of the loans.