Cash advance lenders only approve applications which qualify. If we took out the predatory and fraudulent lenders, it would turn out as a safe statement to make. There are plenty of people who don’t want to hear that good lenders do exist. Not only would it go against their firm belief that the short-term loans are debt traps, but it would also defy the image the opposing side wish to stamp direct lenders with.
Cash advance lenders only want a fair shake.
When a best cash advance lender receives an application for quick money, there is not a blanket approval stamp for everyone. The idea that the lenders target those who cannot afford the loans is absurd to most companies. What happens when borrowers cannot afford their payoff? That’s right; the lender ends up with a default loan and then sells it to a collections agency for peanuts. Approving any loan only produces a loss for the lender. Who wants to run their business with that type of practice?
What do direct lenders really want to see in a potential customer? It’s an easy answer. Any smart business owner will provide service to those who can pay for their loan. There are guidelines that are followed when approving a loan application. Fast cash advance online lenders only want successful loans. Loan processors are trained to evaluate applications thoroughly.
- Is there proof of income? Most online lenders will want to see a bank statement which shows direct deposit. If a person has this function set up with their employer then it is a good sign that there is steady employment.
- Are there any overdrafts of NSF charges within the last 60 days? It doesn’t take a credit report to see how money is managed. If you bounced a check or spent debited more than your account could handle, it shows that you are not aware of your budgeted costs. This sends up red flags to a processor.
- Are there multiple short-term loans already open? One fast cash payoff can squeeze a bank account. If there is more than one, you may not find another lender willing to take the chance that you have money left over for them.
- How much money does the person bring home each month? A borrower cannot use a spouse’s income unless their name is on the loan as well. Strict lenders will requires a certain amount of take-home pay each month and then only loan a portion of that figure. Between state regulations and best practices, short-term loans in the thousands are rare.
- If you have a history of defaulting on cash advance loans, a good lender will refrain from processing your application. There may not be an actual credit check, but there will be a direct loan check. Depending on the lender is how far back they search. The loans are risky enough that a lender will have to be either desperate themselves or predatory to risk sending money to that customer’s account. Be honest about your history with direct lenders.
If you give a responsible lender a fair shake, you may find companies that are lending honestly and with good intentions for the customer. There are no hidden costs because the best cash advance loan lenders only want the loan to end successfully.