How Do I Qualify for a Cash Loan

Jan 28

Need money but want to avoid the time and hassle of taking out a loan from a bank? No problem! You can get a cash loan from several places, including your local payday lender. Just be sure to qualify first. In this article, we'll outline the steps you need to take to ensure you're eligible for a cash loan and the terms you should be aware of.

Credit Score and History

When getting a traditional loan, your credit score is one of the key factors lenders consider. A high credit score can ensure you qualify for various loans at low interest rates. If your credit score is low, or if you have no credit history, you may need to pay higher interest rates or go through a longer process to secure a loan.

Cash loans from your local lender do not require credit checks to approve you for a short term loan to help you with unanticipated bills. Read on to find out what you will need to apply for a cash advance.

Income and Assets

Lenders want to make sure you have enough income to cover both the amount of the cash loan and the finance rate and fees. Lenders typically require borrowers to provide financial statements verifying their income and an active bank account. By setting up a cash loan to be automatically delivered to your account and loan payments automatically deducted from your account, cash loan lenders are able to avoid fees and long application times.

The Debt-to-Income Ratio is a tool lenders use to determine whether you are qualified for a cash loan. The ratio measures your monthly income against your monthly outstanding debts. Most payday loans (often considered to be high-interest debt products) fall within the Debt-to-Income Ratio guidelines.

Identification Requirements

To get a cash loan, you will need to provide personal identification (such as your driver's license or passport) and proof of current contact information. You may also be required to sign an application agreement. Cash loans are an excellent way to meet short-term financial needs.

However, research the available options before applying for a loan. If you have questions about qualifying for a cash loan, don't hesitate to ask your lender. You must be of legal age also to take out a cash loan. Most lenders will only loan to those 18 years of age or older.

Interest Rate

The interest rate on a cash loan may be higher than the interest rate on a traditional loan, but usually is competitive to credit card or other installment loan products. The interest rate will depend on your payment history, debt to income ratio and proof of income. The interest rate or APR for a cash advance loan depends on the lender you choose, the amount you borrow, and your repayment plan.

Conclusion

Now that you have a good idea of what is required to qualify for a cash loan, it's time to check with your local lenders. This will help you determine the best loan terms for you. Read reviews, talk to trusted friends and browse websites to narrow down your choices. Once you have these details, apply for your loan. If the loan is approved, carefully review the interest rate, fees, repayment terms and total loan costs before signing any agreements. Ask all the questions you need to feel confident in your decision.

At Northstar Loans, we help you find the best cash loan for your unique needs. We’ll help you cover unexpected expenses at competitive rates with the best customer service in the Milwaukee area. Visit us online or in person to start your loan application today.