Online payday lending was approximately a $11 billion business in 2010 and represented about 35% of the market. Recent forecasts suggest that the online payday lending business will grow to 62% of the market by 2016. So, if you are looking for a payday loan, chances are you will be using an online lender via a lead generation site.
First of all, make sure you exhaust all options before you apply for a payday loan. The fact is that the lenders are lenders of last resort for you, and the interest rates are high because the lenders are taking on consumers who don't have the collateral or credit profile acceptable to traditional lenders (i.e. banks, credit unions, etc.). Look to reduce your monthly fixed costs, sell unwanted items, get a weekend job, have a yard sale, seek government assistance, etc. before you decide it is imperative that you seek out an online loan.
However, there are times that an unplanned event or unexpected job loss or other events puts you in a position to require a payday loan.
To qualify for a payday loan, you must ideally have the following:
Bank account - Direct Deposit of your weekly or bi-weekly paycheck Proof of income Be gainfully employed for at least 6 months Be over 18 Reside in the U.S. Provide a home address and contact information (owning a home is a key factor for a top tier lender) SS# No outstanding payday loans
Online lenders vary in terms of willingness to lend based on your profile. The lower your income, the shorter you have been at a job, the more outstanding loans you have, etc. will make it more difficult for you to secure a payday loan. However, there are different tiers of lenders, and some will take only top-tier consumers while others will take more risks (and, therefore, they need higher interest rates).
You are unlikely to qualify for a payday loan if:
1. You have an outstanding payday loan or unpaid returned checks.
2. You have been working at your present job for less than 3 months
3. Your contact information is invalid (and this is easy to check)
4. Your bank account cannot be verified
The point is that you shouldn't waste your time pursuing a loan if you KNOW that you are going to fail one of these four criteria. Why go through the process of applying? The industry is data driven and in a split second a lender can qualify your information.
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