Essentially, the requirements (or lack thereof) are a big reason why so many people decide to take out a payday loan or a title loan. Both loans offer cash today or tomorrow, and do so without requiring that much from the borrower. Below is an outline of what is required be lenders in order to secure these loans. However, be aware that each state will have different requirements and procedures (and some may ban such loans in entirety).
- ID. You are required to prove that you are above the legal age. You have to be at least 18 years or older to take out a title loan or payday loan.
- You have to have a checking account. Generally the brick and motor lenders will require a post-dated check in order to secure the loan. Online lenders, however, will require your checking accounting account information so they can deposit/take out funds directly from your account.
- You need to have a job with a paycheck. Most lenders will require that you make at least $1,000 per month to ensure that you can pay the loan back.
In addition, there are a few requirements that are unique to title loans:
- Some lenders require a proof of residency. You can prove this via a copy of a utility bill or mortgage/lease statement.
- Extra vehicle key
- References
As you can see, there are more requirements for title loans – which is also one reason why the rates are slightly better.
It’s also important to realize and understand what it means by ‘no credit check required’. You don’t have to have good credit to get these loans, and they will not perform a standard credit check with any of the three credit bureaus, that does not mean that they will not do any kind of check on your credit. Usually, most immediate cash lenders will run a history check through both Teletrack and CL Verify. They do this to check if you are currently going through a bankruptcy or if you are currently defaulting on other payday/title loans. As such, the final requirement is to not be in bankruptcy and not to be in default on a current payday/title loan. It is ok to have past problems with each of these.
Summary:
There are obviously not many requirements for same day cash loans. However, some of the requirements (such as not being in bankruptcy) are less known, but can be very important so it’s good to know and understand them. Obviously, less strict requirements can be good if you need money, but they can also lead to higher fees. In our next section – section III of our guide, we will discuss the costs of immediate cash loans.