Financial emergencies happen anytime and to anyone. Today’s loan companies offer a wide array of choices that can help you to cover cash shortfalls. One of these is a payday loan. This is the usual go-to cash assistance for employees. If you badly need one, you need to get it done in just one shot. Read these 6 effective tips for a better chance of getting your payday loan approved.
- Have a good credit score
Nothing beats than having a higher credit score on applying for loans. This is also relevant to payday. Lenders will be more at ease in offering their service to people that prove to be in-controlled of their money. Having a 500 and below will make the process harder. So, what you need to do starting now?
Take care of your credit like it’s your favorite shoes. Every time you whip your credit to buy the latest bags or the hottest gadgets, play twenty questions with yourself. Do you need it now? Can you not bear life without it? Will buying it will make you happy and content? Think about it hard so you can avoid a financial crisis in the future.
Aside from exceeding credit limits, your credit score can also be damaged with continuous loans and credit applications. These consecutive requests for credit will likely pile a heap of credit inquiries on your account. Your credit report will hint that you are scrambling for money. And for lenders, that’s never a good sign. But, if it’s too late and you have undergone already a series of credit applications, there’s still a hope for a higher score for you. Learn how to remove credit inquiries from your credit report and you will be good as new to aim for the best payday loan out there.
- Pass the standard
First of all, to have a payday loan, you need to have a job. More specifically, you need to have a stable job. Some loan companies have criteria of minimum monthly payment that starts from $1000. Be truthful in filling up forms, because there’s a huge chance that you’ll be caught when you are lying.
- Know debt to income ratio
Don’t request a loan that is the same with your monthly income. It’s likely to be rejected. Aim for a loan that is less than what you earned. Lenders like to play safe with payday loans. So, debt to income ratio is vital to this type of loan.
- Find the right lender
If you have a small source of income, don’t get discouraged. You can still find a payday loan that will accept your profile. All you have to do is search for the right one. Do your research first. Know exactly where your credit score will be likely approved. What type of lenders that you can work with your situation?
- Pay off your existing debt first
Aside from your income, lenders will also see your existing debt on your credit report. If you have one that is long-overdue and also of great amount, better pay it off first.
- Have a good reason for applying for the loan
Like the usual process, payday loan also asks what the purpose for the application. Normally, this kind of loan is mainly the last resort for an emergency fund. But, if you have another reason to borrow the money, be confident that you can repay the bill on time.