Payday Loan General Requirements

Your individual payday lender is the only authoritative source when it comes to specific borrowing requirements. Each payday lender will have its own set of requirements for loan approval, so meeting the qualifications of one lender won’t necessarily get you approved with another. However, nuances aside, payday loan qualifications do tend to have several basic requirements in common regardless of the chosen lender. In this post, we’ll provide an overview of these general payday loan requirements.

Employment and Income Requirements

To receive a payday loan, you must have a job or at least a steady source of income (e.g., a monthly government benefit, a pension check, etc.). Most payday lenders will verify your employment by examining paystubs that you provide. Typically, you will have to supply paystubs for at least the last two pay periods. In addition to having a job, you must also meet certain income requirements to qualify for a paycheck loan. Every lender has different minimum income requirements, but the most common minimum is $1,000 per month. How much you make beyond the minimum will determine how large of a payday loan you can get.

Bank Account Requirements

Because payday advances are handled almost completely electronically now, you will need to have several features in place with regard to your bank account. For one, you must have a valid checking or savings account. Your payday lender will ask you for the name of your bank and your account number so funds can be electronically wired to your account if you’re approved. Secondly, you must have direct deposit enabled on your bank account. In other words, you must receive or have the ability to receive your paychecks through direct deposit. Payday lenders tend to require this because they want the ability to automatically deduct the repayment of the loan from your account on the loan’s due date.

Miscellaneous Requirements

As with any loan, you will need to be at least 18 years old and a U.S. citizen in order to receive a payday loan. Your lender may ask for your social security number and/or driver’s license in order to verify this information. Because of federal laws, you also cannot receive a payday loan if you are a member of the United States military. Depending on your lender, you may also have to prove that you are paid at least twice per month, bi-weekly, or weekly in order to qualify. If you do not receive your paychecks through direct deposit, some payday lenders may require you to provide your bank statement for the last 30 days to verify your income.