Nowadays, you can’t easily escape from borrowing a loan to meet your daily obligations as well as emergencies. Therefore, you need some basics to get you going. Below are frequently asked questions that you might need as far as securing a personal or payday loan is concerned.

What do I need to qualify for a loan?

To qualify for a loan, you must meet the following minimum qualifications:

  • You must be over 18 years of age
  • You must have a regular monthly net income of $1,000
  • You must possess a bank account that bears your official names

You must meet the above condition to secure a payday or personal loan. Research has it that your loan is more likely to be approved if you are earning a monthly income of $1,500 or more and you’re 18+ years of age.

I have an income of $1000/month, can I get a loan?

Yes. You can get a loan with a $1,000 monthly income. However, you must be over 18 years of age.

How can I know my credit score?

You can get a free credit report here: www.annualcreditreport.com, but unfortunately is doesn’t include your credit score. Each credit reporting agency has it’s own credit score algorithm, luckily they are quite similar. These are the three most common companies equifax.com, experian.com and transunion.com. The thumb rule is that a credit score always costs money to check.

Also check your credit card company, they may provide a free score.

Can I improve my bad credit score?

Yes, you can improve your credit score by repaying your existing loans in time. Keep your credit card balances under 30%, and have at least three cards. Two empty. Avoid hard credit checks.  Do this and within a year you should see a better credit score.

I have no credit rating, can I still apply?

Yes. You can still apply for a payday loan. Payday advance does not require any credit rating they do not perform any credit checks. You’re only required to have a valid bank account, be at least 18 years of age, and have a monthly income of at least $1,000.

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What is payout time for payday loans?

Generally, if your lender is using ACH or credit card and you submit your loan application before 15pm and you get accpeted, you’ll have the cash the same day in some cases. Most lenders use ACH, but others use credit cards. Therefore, it’s important that you seek clarification from your lender if you’re unsure.

Is a 30 days repayment term normal for a payday loan?

Yes, 30 days repayment term is normal. For most lenders, you’ll be required to repay your payday loan within 14 – 30 days. However, your lender may allow you to repay the loan in installments within a period of 3 – 10 months.

What is a good credit score?

Credit scores range from 300 – 850. Your credit worthiness will be evaluated based on your credit score. Usually, lenders will use the guide below in evaluating their potential borrowers:

  • 781 to 880 – Excellent Credit score
  • 661 to 780 – Good Credit score
  • 601 to 660 – Fair Credit score
  • 501 to 600 – Poor Credit score
  • 500 and below – Bad Credit score

What can I do with my low credit score?

If you are unable to get your loan approved due to your poor credit score, you might want to consider going for options such as payday loans/advances and title loans. With these types of loans, you’ll secure at least $100 which is repayable within 2 – 4 weeks.

How do credit bureaus calculate FICO-scores?

A FICO-score is based on your credit information in credit reports. The data is categorized into 5 groups. Each category carries a certain percentage. The following grouping percentiles will help you understand how important each group is.

  • Your Payment history accounts for 35%
  • The total amount owed accounts for 30%
  • The length of your credit history accounts for 15%
  • The credit mix in use accounts for 10%
  • How often you open new credits accounts for 10%
Lauren Ward

Lauren Ward
Writer and editor

Specializing in original, well-researched web content, including blog posts, news articles and web copy. Areas of expertise include personal finance and lending. 10 years of experience as freelance writer and working at Federal Reserve Bank of Richmond. Read more about us »

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