How To Qualify For A Payday Loan

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Many people have heard of payday loans in recent years. With the increasing popularity of these loans, many folks are considering applying for just such a loan. In many cases, applications are even being filed online. One particular question, for people new to the payday loan process, is in regards to meeting application requirements. Payday loans have some of the least restrictive qualifications of any loan. Let’s get into the things you’ll want to consider prior to applying for a payday loan. Below are some questions you should ask yourself.

Are Payday Loans Restricted In Your State?

The first step you will want to take is to look into whether or not payday loans are legal in your state. It seems odd that they would be legal in some states yet not in others. Not all state-level politicians agree with the higher interest rates that can accompany some payday loans.


Such loans are intended for short durations and may be a higher risk for the investor as some forego credit checks for applicants. The higher rate usually is in place so that the lender can make some interest off these short duration cash advances to give incentive for future loans. Payday loans are legal in many states where local governments approve of them.

Are You Legally An Adult?

Most financial institutions require you to be a legal adult when applying for a loan. Whenever money is being lent it is important that the recipient is financially responsible for the money they borrow. A minor cannot be held financially responsible legally and may also lack the maturity to make such financial decisions.

Are You Currently Employed?

Being currently employed is very important to a lender. It shows that you will have the means to repay any loans. Let’s face it. If you don’t have a job, a short-term loan that should be paid back soon is probably not right for you.


What if you have a job, but you were only recently employed? Most payday lenders do not require a very long period of employment due to the smaller, short-term nature of the loans they give. Requirements may range from several weeks of employment to two or three months. Generally, lenders simply want to be sure you can repay the money they lend to you.

Are You A Permanent US Resident?

Some people think they need to be a US citizen to apply for a payday loan. This is not always a matter of fact. Many lenders only require that you are a permanent resident. If you can prove your identity and residency with your social security number then you can be approved for a payday loan in most cases.

Do You Have A Good Credit Score?

If your answer is no, then your like many people in the US that don’t have “perfect” credit scores. Since payday loans are short-term and involve smaller amounts of cash than some other loans, many lenders will ignore FICO credit scoring of potential borrowers. This opens the door of opportunity to a lot more folks who are looking to borrow. By not basing an application approval on FICO credit scoring, lenders are helping borrowers and themselves.


Do You Have A Checking Account?

Most lenders taking applications online require that you have a checking account. This is because, when they approve your loan application, they will need an account to deposit the money in, electronically.

In conclusion, if you or someone you know is considering a payday loan, consider state laws and whether you can get a payday loan in your state. Remember that you need to be a legal adult with current employment. Don’t be deterred by a less-than-pristine credit score. Be ready to prove your permanent US residency with a social security number. Lastly, make sure you possess an active checking account. After all, when you get approved, you’ll need a checking account to access your money.

About Kelly Stone

Kelly is a graduate of Northwestern University's Kellogg School of Management with a Master's Degree in Finance. Kelly has 20+ years experience in the short-term lending industry since 1996, having owned 50 storefronts offering payday loans. As President of Snappy Payday Loans, Kelly has built a large network of lenders and is dedicated to ensuring consumers nationwide can find the loan they are seeking. View More