How to Qualify for a Loan

In lending, credit history is important because it reflects a person’s financial reputation and capacity to repay a loan. A good credit history means greater chances of qualifying for a personal loan. Bad credit, on the other hand, reduces the odds of approval. Clearly, your chances of getting approved for a traditional loan depend largely on the strength of your credit history.

The banking industry nowadays is notoriously cautious when it comes to lending. Bank lenders are afraid that if they will extend credit to consumers with bad financial past, they will lose it all. This lack of trust is causing banks to be very careful about whom they give loans to. Maintaining a clean credit record is extremely important, but it is not easy. In that case, a cash advance loan may be your only option.

Although the process of acquiring cash advance loans is very simple, there are still a few basic requirements and guidelines to meet.

What Do You Need to Get a Cash Advance Loan?

While cash advance loans are a very convenient way to secure immediate finances, not everyone can qualify for this type of lending. To get a cash advance loan, also sometimes called payday advance loan, you must be more than 18 years of age. You must also be a citizen of the United States or a permanent resident of a state. Cash advance loans also require a valid checking account where the money can be transferred.

The most important requirement is that you have a dependable source of income. Lending is a business, and loan companies make money by lending money to consumers. Thus, while companies that offer cash advance loans are brave enough to take risk, they still need to be careful to protect their profit. Cash advance loan providers do not based their lending decisions on the borrower’s repayment history. However, they require applicants to have a dependable source of income. This is, of course, to ensure that the loan will be repaid.

A proof of a stable source of income is your pay slip. However, some lenders don’t just ask for your most recent pay slip. You should show a proof that you have the same job for the past six months.

If you are able to present these documents and you apply for a loan your income can obviously afford, chances are that you will get approved for this loan. The good news is that payday advance loans are released within 24 hours up to 48 hours, making this type of loan a perfect solution for immediate financial situations.