What an Online Payday Loan Lender Knows From Your Bank Statement

Applying for payday loans online is quick and it’s a very simple process. Some people may feel a little bit timid of having to put their personal information on an application over the internet. For the most part, when you apply with a direct lender, it’s a secure site. There are some lenders that will offer you a loan without you having to fax in any paperwork. These loans are attractive to consumers because it erases an extra step. You no longer need to head over to a local Kinko’s or Office Depot in order to send a fax.

When you choose to apply with an online lender, you will need to send in a bank statement. Although, it may be a fax less loan, you still need to find a way to send in that statement. For most people, they log into their online banking portal and then download their latest 30 day bank statement. It will then take the loan processors just a small amount of time to look over your bank statement and make a decision on your application.

What Does a Lender Look For on a Bank Statement?

Lenders will be looking for direct deposits. When you receive your paycheck electronically, it tells the lender that you have steady employment. Also, the net amount of income you receive will be a factor in the amount that you are qualified for. Most lenders will want to make sure that you make a certain amount to qualify. Many lenders will also like to see you make eight times the amount that you are approved for. An easy way for you to estimate the amount you would be approved for is to take your net income and divide it by eight. Keep in mind that every state has a cap on the amount a lender can give you.

Payday lenders will also use your bank statement to see how well you are managing your money. If your statement shows several NSFs, you will more than likely be disqualified.

If you have any other payday loans out, than the lender will take note of that. Most lenders will allow you to have one other payday loan out without denying your application. In the mind of the loan processor, they know that you have agreed to pay these loans back with your next paycheck. This is part of being a responsible lender. If your lender doesn’t care about the amount of other loans you have out, or the amount that you owe in payday loans, than it’s not a responsible lender and you could be biting off more than you can chew. You risk the chance at falling into more debt.

To have a successful payday loan, it will take responsibility from you and your lender. Don’t borrow more than you need because you don’t want to get in over your head. Make sure you have a plan and a strict budget that will allow you to pay back your online payday loan by the time your due date comes around.