How to Qualify for a Payday Loan

There are a lot of things you can do to fill a gap in your monthly budget. You can borrow money from friends or relatives and repay that loan on the following month.  You can also reduce some of your expenses – or even make drastic cuts if necessary – to raise the money needed to fill that gap.

Payday loans are options worth considering too. Especially if they’re payday loans with no credit checks. They are easy to use and can be acquired within hours thanks to the top lenders in this country. On top of that, you benefit from the extra flexibility offered by today’s best payday loans.

Before you apply for a payday loan, however, you have to make sure that you qualify for the loan. The loan application process is very simple, which is why spending more time to make sure that you qualify for the loan is worth doing. Here are some of the steps you can take to get started.

Review Your Needs

Before you start reviewing the requirements of payday loans, you need to first understand your situation. How big is the gap that you need to fill? Do you need a £100 loan or one that offers a bigger amount? These little details determine which payday loans you should apply for.

You also need to review your options. If cutting some expenses can help raise the money you need, then that is the step you want to take first. You can still use a good payday loan to fill the rest of the gap, but you will be borrowing less and can repay the loan easier in the future.

Lastly, don’t forget to take into account the budget for the following month. Remember that you need to repay the payday loan on your next payday, so you have to make adjustments to your budget accordingly.

Age and Employment Status

Most payday loans are designed to be accessible. You don’t have to jump through hoops to qualify for the loan. That said, you still have to meet certain requirements to qualify for the loan, starting with the age requirement imposed by lenders.

You have to be 18 years or older to qualify for a payday loan. As the name suggests, you also need a regular pay check – good employment status – to be able to apply for the loan. Of course, these two requirements are among the easiest to meet.

Additional information on other sources of income is handy too. While payday lenders do not see extra income as mandatory, they certainly help increase your chances of getting approved for the loan.

Supporting Documents

The loan application is designed to be straightforward. You simply fill out an online form and wait for the verification process to be completed. This is why payday loans can be used for emergencies. It takes no more than a few hours to get approved for the loan, and even sooner to have the money deposited into your account.

In rare cases where further verifications are needed, you will be asked to submit additional documents to support your application. The two most common documents asked by payday lenders are proof of address and proof of employment.

Before moving forward with your loan application, prepare these supporting documents to be on the safe side. If the loan application form allows you to upload the required documents when applying for the loan, simply submit them and boost your chances of getting the loan approved sooner.

A Checking Account

The last piece of the puzzle is a checking account. Remember that the loan will be deposited into your account as soon as it is approved, so you need to have a valid checking account under your name. Details about your checking account are among the information you need to submit when applying for the loan.

Applying for a payday loan also means allowing the lender to debit the repayment amount when it is due. This is why payday loans are so easy to use; you don’t even have to worry about repaying the loan because the correct amount will be debited when you receive your next pay check.

You still maintain the ability to extend the loan if needed. Most payday loans can be extended for up to three terms – around three months in total – to allow you to reorganize your personal finance and repay the loan without putting too much stress on your monthly budget. You only need to pay the interest of the loan to extend it. With these requirements met, you should have no trouble at all getting a payday loan approved. You can start your search for the best payday loans to use, review their requirements and the costs of using them, and choose a payday loan that suits you best. The application process will be easy once you found the right loan to take out.

Dealing with a Financial Emergency: A Quick Guide

We’ve all been there; we have a tight monthly budget with everything planned, only to see the plan shattered by an emergency or an unexpected expense. For someone who live from payday to payday, even the smallest unexpected expense can turn into a big problem.

Not all expenses can be anticipated beforehand. Unexpected expenses and emergencies are also more difficult to handle when you don’t have enough savings to use. Worry not, because there are still some solutions to help you deal with expenses that throw your monthly budget off balance.

Start Saving

As soon as you realize that you have a sudden expense to cover, take steps to reduce other expenses immediately. The sooner you start saving, the sooner you can return to your normal monthly budget after the emergency. Review your everyday expenses and be prepared to cut all expenses that are not absolutely essential.

Depending on the emergency that you are dealing with, cutting expenses can help you raise the money you need. Even if you can’t, reducing your expenses is still important, because it allows you to restore the balance of your monthly budget over time.

Non-essential expenses are the easiest ones to cut completely. Remember that no amount is too small to save; every step you take to reduce your expenses gets you closer to recovering your personal financial state and returning to a healthy cash flow.

Review the Situation

Before you move ahead, you also want to take the time to understand the situation you are in. How much is the financial emergency costing you? Do you have the money to cover it or do you need to raise funds for the emergency? More importantly, what is your plan to return to your normal, balanced personal financial state?

Let’s say your car broke down and you need to get it repair immediately. After talking to a mechanic, you get an estimate for a repair of £500. Spending £500 on car repair is beyond your budget, but not fixing the car is not something you can afford to do; you rely on the car to get to work and make money.

The situation may seem difficult and impossible to solve but understanding it will give you the right options to work with. You know you can get the car fixed for £500, which means you can review whether fixing it is a good move to make compared to other solutions such as taking public transport.

Weigh Your Options

Covering the emergency expense itself is not as difficult as you may think. The bleak situation is easily rectifiable when you know the right solution to take. You can, for example, ask for friends or relatives to help you with the £500 repair cost. Borrowing from friends or relatives is not the most comfortable thing to do, but you can be more flexible with the loan and repaying it.

You also have payday loans as alternatives. Thanks to the growing market, you can apply – and get approved – for a payday loan in a couple of hours. You can borrow anywhere from £100 to £10,000 depending on the lender you choose to work with. Even better, the loan will automatically get repaid the next time you receive a pay check.

Payday loans are made for dealing with financial emergencies. They are short-term loans that you can use for a couple of weeks. You also maintain that extra flexibility; the payday loan can be extended to up to three months if you still need time to recover from the unexpected expense. The straightforward cost structure makes this type of loan even easier to use.

Recovering from the Emergency

Dealing with the financial emergency is only the beginning. As explained previously, getting the £500 you need to repair your car is easy. Once the car is repaired, you can return to your normal schedules and continue using the car to get to work.

However, you still need to think about restoring balance in your budget. After all, you have a £500 loan to repay, so it is time to make some changes. The expenses you cut earlier are prefect sources of additional funds for loan repayment.

You can search for additional income to help repay the loan faster. Freelance work, paid projects, and other opportunities to make money are widely available online. The extra money you make must go towards repaying the loan. The goal is to get it repaid as quickly as possible.

Once the loan is repaid, you have the option to continue saving or to return to your old spending habit. The former is certainly the better option of the two. Since you are already accustomed to sticking with the essential expenses only, you can save the rest of your money for future emergencies; no need to worry about unexpected expenses again when you have enough in your savings account.