Can I Get A Payday Loan If I Have Existing Debt?
If you've been looking into getting approved for a payday loan, you've no doubt come up with a lot of questions. After all, loans are confusing, especially if it's your first time trying to get one. A big question that often comes up is "can I get a payday loan if I already have debt"?
Well, simply put, it depends. There are a few factors involved that determine whether or not your existing debt will stop you from getting a payday loan. Don't worry, we'll tell you what you need to know right here.
Yes, You Might Still Get A Payday Loan If You Have Existing Debt
To start, we'll go ahead and clarify this important piece of information: even if you have existing debt, it is possible to be approved for a payday loan. However, it mostly depends on what kind of debt you have and how much of it you have. You can not get a payday loan if you already have one that you are paying on.
As you can probably imagine, a lender looks into your credit history when they are considering you for a payday loan. They'll look at your financial information, which will include things like your income and current debts that you may have. This is important for a few reasons.
What Does A Lender Look At?
The biggest is that a lender needs confidence that you are making enough money to pay back the hypothetical loan they are giving you. In other words, if you have existing debt that you are already having trouble paying off, a lender is probably not going to approve you for a payday loan, on the basis that you will have trouble paying them back as well.
Making Payments Is Key
This is why the effect of existing debt on getting approved for a payday loan is quite variable. If you have debt that you have trouble paying off, a lender is not going to see you as a good candidate to lend to. But if you have debt that you pay off easily, and you make enough money to easily cover payments on a payday loan, the existing debt won't affect you much.
Basically, it comes down to how much debt you have compared to how much income you make. If your debt obligations only make up a small fraction of your income, a lender will have confidence in your financial ability to pay back their loan as well. If your debt is a large part of your income, they won't have that same confidence.
The Number Of Existing Debts Can Matter Too
It's not just the monetary total of your debt that might impact your approval for a payday loan. The number of debts you have can also have an impact. By that, we mean the number of different debts. For instance, maybe you only have $1,000 of debt, but it is split across four loans.
If you have a high number of debts in that regard, it might send a bad message to another lender, simply because they will have to wonder why you have so many debts and why you are looking to take on another one.
Each Lender Is Slightly Different
However, it's important to remember that every lender has their own approval criteria. It's impossible to say that, universally, lenders will or won't approve you based on your existing debt. But a basic rule of thumb is this: the more existing debt you have, the less likely you are to get approved for a payday loan. The opposite is also true.
Getting A Payday Loan With Tennessee Title Loans, Inc.
If you believe a payday loan is a good choice for your financial situation, we here at Tennessee Title Loans, Inc. have a process that is both swift and easy, helping you get money, and fast. To start, make sure you have the three following items: a recent pay stub, a blank check to a checking account in your name, and a state-issued ID.
If you have those things, you can submit a loan inquiry form right here on this website. One of our representatives will reach out to you via phone as soon as they can, to discuss a time to meet with you. Be sure to bring the previously mentioned items to that meeting.
Our representative will examine and verify all of your documentation and determine if you qualify for the loan, as well as how much money you qualify for. Assuming you qualify, you will just have to sign some papers, and you will be able to receive your funds either the day you sign or the following business day.
Get Started Today, Even If You Have Debt
It's plain to see, Tennessee Title Loans has a quick and easy process that is simple for anyone and cuts down on hassle as much as possible. Even if you have debt, you can still apply and potentially be approved. So, if you're in need of a payday loan, feel free to contact us! We're always ready to help.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.