What would drive you to apply for a direct payday loan? Would it be that your credit score is horrible? Are all your credit cards filled and there is no money in the bank? Before you move forth and obtain anymore money other than your paycheck, you may want to evaluate where your finances stand and find the root to the problem. Is it poor money management?
Direct payday loan lenders offer fast cash solutions.
Fast cash is not so easy to come by when poor money management has destroyed credit opportunities. Thanks to online direct payday lenders there are many people who have access to cash when others have closed the door. Because these lenders do not perform credit checks in order to approve loans, a person’s past money management skills do not apply. Attention is paid to bank accounts, more specifically the health of the account covered in the last bank statement.
Direct lenders are looking for proof of direct deposit. When a paycheck is automatically deposited into the bank it shows that income is steady, art of a reoccurring cycle. It is the assurance a short-term loan lender needs to understand how their payoff would be funded. There are other items lenders look for: other current payday loans, overdraft fees and how long a deposit lasts.
- A responsible direct payday lender will search bank account statements for good money management skills. With no credit bureau check loans, the here and now is what matters the most. Even good people go through hard times so if things are running smoothly, a clean bank account statement will help application approval.
- If the applicant had defaulted on a payday loan in the past, it will red flag the application. Some lenders will look only 6 months to a year back, whereas others may search a few years. The loans are risky enough as is, so if the applicant has already shown failure to repay; it will put their approval in jeopardy.
- Overdraft fees are signs of poor money management. The lender will want to see good control over how the money is controlled. They are considering their due date. If a person is good about making sure there is money in the account to take care of bills, then they will feel more comfortable to expect money in the bank when it is their turn to withdraw payment.
- Once money is deposited, what happens next? A direct deposit shows steady income but how long does the money last? Is there an instant demand on the cash which brings the account balance back down in just a few days. How long is the pay cycle before you get paid again? If your account shows distress for long periods of time, it may create a lender to hesitate with loan approval.
If past money management skills have steered your finances in the short-term loan direction, don’t expect a lender will approve any application. Your credit history will not hurt your chances, but your present status could. The good thing is that these skills can be corrected. With some hard work and dedication to your finances, you can turn credit history around and bring life back into your money options. A direct online payday loan may help you in the meantime.