Payday loan lenders want a customer to have a good running bank account. There is no interest in what your credit history looks like, but rather what your bank account looks like lately. It may seem like an odd approach towards lending, but a bank account can tell lots bout a person’s money management.
What do payday loan lenders look for in a bank account?
The first thing the lender wants to know is that you have a bank account. Since direct payday loan lenders process money through electronic debits and deposits, a bank account is part of their business and a necessity for online loans. Bad credit happens to good people who try hard to make their money work. Life and circumstance bring in many financial situations which are not always positive factors for budgets. Because people have bad credit that lingers for seven years, payday loan lenders will still help.
What are lenders looking for in your account?
- Direct deposits show that there is employment. Since the paycheck enters the bank account electronically, it shows that there is steady employment. Employment and the amount of income you bring home are big factors for lenders.
- The lender will want to see at least of 60 days of transactions without returned checks or NSF fees applied to transactions. Money management is what your credit score ranks. A payday loan lender will use your current management skill to determine your trustworthiness for a fast cash loan.
- How many other payday loans do you currently owe money towards? Since these loans are supposed to be paid back with your next paycheck, a lender would have difficulty loaning money to someone who has too many other instant demands on income. It is a best practices decision. Lenders who do not care how many other payday loans you have out at one time are not responsible and should not be trusted.
