What can I do if I can’t get a payday loan
Payday loans are not for everyone. They are normally sought after by people who need to obtain funds quickly and without any hassles. Payday loans are short term loans and unlike bank loans they must be paid back in a shorter amount of time and with higher interest rates.
Applying for a payday loan and having an application denied may be a lucky break. Incomes that are not substantial or individuals that do not have a steady source of income may not want to consider applying for a payday loan. It may not be the best avenue for generating cash. However, there are other reasons why individuals do not qualify for a payday loan.
Lenders have strict requirements and applicants are expected to fall into that category. For instance, applicants must be at least 18 years of age and a United States citizen. Borrowers may also have to have a valid picture identification card, social security number and address. Borrowers must have a verifiable job or source of income which meets or exceeds the $800 per month requirement.
Self employment may not be a suitable source of income for lenders. Some lending institutions are willing to take this type of employment as collateral for repayment, but they may ask for additional documentation. They may require you to have a set number of bank statements for income verification purposes, plus this makes the transference and withdrawal of money easier.
Almost every applicant must have a valid savings or checking account. This is an almost a universal requirement that every payday lending institution stipulates. Individuals who do not qualify for a payday loan need to:
• Repair their credit
• Look for an alternative source of financing, such as a friend or family member
• Change their spending habits
While the percentage of individuals approved for payday loans are high there are a percentage of individuals that will not obtain approval. If this happens, the best recourse is to find another way to generate cash such as taking on another job.
Borrowing money from family members may be appropriate. Sometimes family is the best source to go to for financial help, especially parents. They usually have money on hand and they do not charge large interest rates. Parents and other family members have assets that can use as collateral such as 401K plans, insurance policies and retirement savings.
Just be sure to make payments to the lender as agreed and pay on time. Borrowing money from credit unions and banks is another option. Repayment time is longer than payday loans, interest rates are slightly lower and payments can be stretched out over time.
Not qualifying for a payday loan is not the end of the world. In fact, it is an opportunity to pursue other available sources. Look around for other ways to raise money. Perhaps cash in a overdue savings bond that have accumulated interest over the years.
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