6. You Don’t Have a Checking Account or Don’t Meet the Minimum Requirements
Before going down to your local payday lender, or going online to apply, you should check to see that you meet the basic, minimum requirements. Failure to do so is one of the first reasons payday loans are rejected. To legally receive a payday loan you must be of age and meet the applicable residency requirements. Remember, applying for payday loans with bad credit can affect have even more of a negative effect– so applying for a loan that you have no chance of being approved for is not a terrific idea.
If you do not meet the minimum requirements and walk into the office of some lender who would lend to you anyway- both you and the lender are asking for trouble. This is why we are having this little talk, after all- because if you get approved for a loan that you should not be approved for- well… we’re back to our digging a hole analogy.
Remember, the average interest rates on payday loans are higher than other types of loans. Knowing that, you should be able to calculate for yourself whether or not you can pay off your loan. If you can’t pay back a payday loan on time- you don’t need the loan. And if you don’t meet the minimum requirements, you wasting your time and the lender’s time.
7. Your Salary is in Cash Are Payday Loans Worth it?
It wasn’t that long ago that we dreamed of a cashless society. Wouldn’t it be great, we said if we didn’t have to handle paper and coins that have been touched and pocketed by who knows how many dubiously bathed people? Well, dream no longer, folks, because that day is upon us. Sure, cash may still be around, but it’s quickly going the way of the dodo bird- and it’s a leading reason why payday loans are rejected.
We remember when people in line at the grocery store would groan when someone ahead of them pulled out a card instead of cash. But today, it’s the norm. In fact, many vendors will not even take cash anymore. They only want to deal with people who have it together enough to have a bank account and to be able to track every transaction they make.
To put it bluntly, people who pay cash are not looked on favorably. For one thing, we don’t know where the cash is coming from. If you take cash, are you doing business with a drug dealer, a car thief? We don’t know. This is so much more the case with payday lenders. To put it bluntly, they have a lot of shady people coming into their offices off the streets. They do not want to get into a situation where they find out later that they have been doing business with a small-time criminal. The liability could be enough to ruin their business.
That means, even though you’re probably a responsible person if your main source of income pays you in physical money- few payday lenders are going to shy away from working with you.
So what to think about it?
At the end of the day, once again, this is really for your own good. Why? Because cash payments don’t often get tied to your credit score. That means if you’re trying to improve your credit score by making timely payments- doing it with cash might not even help your credit score.
One way around this is to deposit all of the cash payments your employer makes to you into the bank before spending it. As long as your income is sufficient and regular- this might not affect your ability to access a payday loan. However, if the only way you have to pay is with cash- few financial services providers will be willing to work with you.
The unpleasant fact is that they will prejudge you- poorly. So just run your money through a bank- and if that’s above your capabilities- then some kind of financial rehabilitation is probably what the doctor ordered.
The Bottom Line for Quick Cash Loans
Payday loans are not for everyone. Unfortunately, there are too many such lenders out there who are all too willing to take advantage of people who are not financially savvy. Our advice is to know ahead of time whether or not you have a good chance of being approved. Only accept a payday loan if you need it and know you can pay it off in a timely fashion. Short of that- financial rehabilitation is probably the thing that most payday loan seekers are in need of.