How to Boost Your Chances of Getting Your Payday Loan Approved
Sometimes life throws us curveballs: They can come in many forms. Sometimes, you break a bone. Sometimes, your car gets wrecked. Perhaps your air conditioning needs to be repaired, or the dishwasher, or some other appliance you use regularly? Or, in the worst of cases, you've lost a loved one. Any of these things can really affect your life and your wallet. If one of life's curveballs have thrown you into financial fallout, you might be in need of some fast cash. You might not know what your options are or even how to start.
Well, that's where payday loans come in. Payday loans are a short-term, unsecured loan that could get you the money you need when you need it. With that in mind, we're here to explain to you what payday loans are and how you can put together the best application for one! So, get out your notepad and pencil and get ready for some regular old financial learning!
What Is a Payday Loan?
A payday loan is a short-term loan that is designed to help you from one paycheck to the next. Payday loans are generally for amounts of $500 or less. Payday loans terms generally are two weeks (sometimes more) with a higher interest rate than some longer-term loans. The best part is that you can get the case you need for your emergency very quickly. While other loan options might take a few days, many payday loans can get you the money in a fraction of the time. Here at Tennessee Title Loans, we pride ourselves in getting you the cash you need, when you need it! At Tennessee Title Loans, we also offer payday loans up to $400 dollars. Read more about the differences between title and payday loans, here to see which option is right for you and your situation.
How Do I Apply for a Payday Loan?
Applying for a payday loan is really easy. To start, you'll generally fill out an online form to get the process started (like the form at the top of this blog page). A representative will call you and walk you through the rest of the steps while getting some more info. After that, you'll need to gather some documents. For one of our payday loans, these documents include your most recent pay stub, a valid form of state-issued photo identification, your most recent bank statement and a blank check from an active checking account in your name. You'll bring this information to one of the lender's locations, and finish the application process the same day.
But how do you make sure you have a strong application and make sure everything goes through as well as you'd like? As with any loan, the stronger your application, the better your terms! Well, here are some tips to putting together a strong payday loan application!
Putting Together a Strong Payday Loan Application
So, what do you need for a strong application? First, you'll need to do some self-research. A lot of what makes a difference in an application comes down to you knowing your financial story well enough to know how much you can ask for. Let's get started:
Know Your Credit Score
Knowing your credit score is vital to a good application. Your credit score is a diagnosis of your financial health. It tracks your loans, your savings, and your payments. If you make payments on time, keep a low balance on credit, and have more in your savings, you are already well en route to a good credit score. A credit score tells lenders what to expect as far as your ability to pay back the loan. A high credit score is a safer option to lend money to than a low credit score, which lenders see as more of a risk. Even if the service says, "Bad credit? No problem!" you should still keep an eye out on your score. The better your score, the higher the chance you have of getting approved, and the better terms and rates will be.
Be Aware of How Much You Should Ask For
Knowing how much you can ask for is important. This is also known as your debt to income ratio. If you only make $1,200 a month, they probably won't lend you $1,000; the odds of you paying that back are very low. You probably have bills and things that money needs to go towards. Instead, the lower the ratio, the better your approval chances. So, if you request $300-$400 and get paid $1,200 a month, your chances of getting approved increase dramatically.
Don't Lie on Your Application
So, this might feel super obvious, but, seriously guys, don't lie on your payday loan application. When they run your background check and credit check, lenders will find those inconsistencies, and that is a sure-fire way to get your application rejected. Now, you might be like, "What could I possibly lie about?" Well, one thing people fudge on their application is their monthly income. They'll put a higher amount (remember, you are going to need pay stubs) or they will list "freelance" work as a way to bump up their monthly income. Lenders aren't interested in any income outside of your permanent, steady job. So, don't mess with those numbers. Just fill out the application honestly.
Nothing helps a payday loan application out quite as much as getting everything in on time! If a lender gives you a time limit of "twenty-four hours" to get something in, make sure you've got it in on time. Remember, lenders are looking for someone who is reliable to loan money to. If you aren't reliable when it comes to turning in a form on time, how does that look for returning borrowed money?
Go Get That Payday Loan Application Started!
Hopefully, you took some notes and have started thinking about if a payday loan is the right fit for your needs. If you've come to that conclusion, great! We would love to help. Fill out our online form so we can get this application process started for you! Remember our application tips and you could be smooth sailing to payday loan approval soon. Don't let a financial emergency send you into free fall. Fill out our form now to get the help you need!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.