There’s also the option of a Payday Alternative Loan (PAL) to consider. These loans are exempt from the competitive interest rates on payday loans. These loans can also help people with poor credit ratings. Payday Alternative Loans have more generous repayment terms, often giving you up to six months to repay the loan.
The requirements to get a loan change depending on the loan and lender in question. For example, you’ll need the details for the car you want with a car loan. Business loans require you to have information about your business and a business plan for how you’ll use the money. Mortgages require information about the house you’ll buy.
There are some universal requirements that here are the findings every lender will ask for no matter the type of loan you pursue. These requirements include:
- Your name
- Your home address, email address, and phone number
- Evidence you are a permanent resident or citizen of the United States
- Collateral for a secure loan
- Employment history
- Evidence of income status
- Social security number
- A form of government-issued identification such as a passport, driver’s license, or social security card
How Can I Use an Online Loan?
How you can use the money from the loan also depends on the type of loan. For example, your condo is anything you want with a personal loan. Feel free to use the money however you please. However, you won’t get that degree of freedom with other types of loans. For example, you must use a car loan to buy a car and a business loan to fund your business. Money from student loans must go towards paying for your studies.
Most online lenders will demand information about how you intend to use the money you borrow. Don’t worry too much, as your answer might not influence your chances of being approved for the loan. Instead, the question checks how reliable and responsible you are.
If you have negative statements in your bank account, you’re less likely to secure a loan for a car or vacation. Using a loan for a vacation when you have a bad credit score shows that you have a serious lack of financial prudence. Most lenders are unwilling to give money to people who aren’t careful with how they spend it.
What is the Fastest Reason to Get Approval For?
When you consider all the factors at play, a payday loan is the easiest loan to obtain online. The money is sent to your account as soon as you qualify for the loan. You’ll need to pay back the loan with interest within two weeks. The idea is to use the money from your next paycheck to pay off the loan, hence the name.
While you won’t have much trouble obtaining a payday loan, there are other options that are better for you. These alternatives are best for people with bad credit ratings. Payday loans have ridiculous interest rates, which goes a long way towards explaining why they are so easy to obtain.
Payday loans are intended to cover your financial needs until you get your next paycheck. That’s why you typically have between 15 and 30 days to pay the loan with interest. The interest rate goes up even more if you fail to pay the loan back in time. Therefore, you should only ever use a payday loan as a last resort when you truly have no other options.
Many people turn to payday loans because they assume their poor credit rating automatically disqualifies them from obtaining a better loan. As you’ve seen by now if you’ve read this far, that’s not the case at all.