How to Know if you’re Eligible for an Alternative to Payday Loans

How to Know if you're Eligible for an Alternative to Payday Loans

Payday loans are used to cover short term financial needs. Consumers who are struggling to make ends meet because of an emergency often turn to payday loans to get fast cash up to $550 in most states. If your financial needs add up to more than the maximum payday loan amount, you’ll probably need to look for an alternative to payday loans.

Some of the alternatives to payday loans include:
Installment Loans
Personal Loans
Advance Loans

These types of loans are often originated by both major banks and online financial companies. Check with your lender to determine which one fits your personal needs the best.

Use the following guidelines to determine whether or not you’re eligible:

Your Income

Income is an important factor for those that are looking to qualify for a loan.

Financial institutions need to make sure you have the ability to repay the loan, which means the borrower must meet certain income guidelines. The amount of income needed generally depends on the amount the individual is looking to borrow. Income is most often proved by pay stubs, bank statements or a signed letter from your employer.

In most cases, the borrower must also be gainfully employed either part time or full time and on the books, instead of an independent contractor.

Your Credit History

If you’re looking for payday loan alternatives, you’ll likely find some options that require a great credit history and others that will take you based more on your income than anything else.

When credit is not a factor, financial companies do require that borrowers not currently be in bankruptcy or have plans to file for bankruptcy protection in the near future.

Your Age and Citizenship Status

One of the more basic requirements needed to qualify for a payday loan alternative has to do with age and citizenship status.

All applicants must be at least 18 years of age and a citizen of the United States to qualify. Proof of this will likely be in the form of a government issued I.D. and social security number (which will also be used to verify background information).

The approval guidelines will likely vary from vendor to vendor. Before making a decision to apply for a loan, the best thing to do is determine exactly what is needed and whether or not you qualify.