Only Apply When You Qualify

Posted by on Aug 1, 2006 in Tips

Only Apply When You Qualify

Only apply for a payday loan when you are absolutely certain you qualify.

If your application is denied, the fact that you applied will remain in your record permanently.

If your record contains too many applications, payday lenders may view you as a risk and you will have trouble getting future loans…

Payday lenders do not check your credit rating with major credit reporting agencies.

Most cash advance lenders do not care about your credit rating. Their business is built around offering expensive loans to people who cannot get cheaper loans elsewhere. Frankly, people with good credit histories would not be shopping for payday loans in the first place.

To avoid high risk borrowers, payday lenders use TeleTrack – a consumer credit database for sub-prime lenders. They will check to see if you:

  • have applied for multiple loans (or at multiple lenders)
  • currently have unpaid loans
  • failed to repay loans in the past

Every time you apply for a payday loan, it is reported to (and recorded by) TeleTrack, even if your loan application was denied.

If you have multiple payday loan applications, lenders will:

  • know you have severe financial problems
  • consider you a risk
  • avoid you

Multiple loan applications will make it difficult to get future loans.

Always check to ensure you satisfy all lender requirements regarding:

  • direct deposit
  • employment history
  • minimum monthly salary
  • checking/banking history

Failing to meet minimum requirements will not only destroy your chances of getting this loan approved, it may also jeopardize future loan applications.

When shopping for payday loans, compare many but apply once!

Remember: Payday loans are expensive and have many pitfalls.

If possible, consider alternatives to payday loans.

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