Part 3
Most payday loan lenders require two forms of identification, two pay stubs or a letter from your employer with details about your job, at least one utility bill (to establish residency), a checking account (they require you to write out a check that they can cash if you try to default on the loan), and between three and five personal contacts. Although most say they only use the personal contacts when they cannot get in contact with you through the phone number or address you supplied, there is generally no guarantee that they will not use the list for marketing purposes, nor is there any guarantee that the list will not be sold to data brokers for subsequent resale.
If you didn't get the cash advance you wanted then these the most possible reasons why:
a) You live in a state where payday loans are not available. Many lenders will not lend in certain states. So if you live states such as Georgia, New York or Wyoming, chances are it will be hard for you to obtain a cash advance. You may need to look at other alternatives such as a title loan or borrowing from friends and relatives.
b) You don't have direct deposit pay checks. If you don't have direct desposit chances are you will not find a payday loan lender that will give you a cash advance. Paper checks are too risky for most payday loan lenders so they avoid paper checks at all costs. See if your employer offers direct deposit and if they do, sign up. Then re-apply for a payday loan.
c) You don't have a checking account. A checking account is vital to get a cash advance. Most lenders will not offer a payday loan without it. Some customers try to use a savings account, but this is not sufficient. You must have an active checking account for most payday loan lenders to give you a loan.
d) Your monthly income is too low. Many payday loan lenders require that you make at least $1,000 per month. Even then, most payday loan lenders will require more than $1000 per month if you wish to borrow $500. Many have rules where you can borrow only 15% of your monthly income. In our example, if you make $900 per month, you would only be allowed to borrow $135.
e) You have too many recent inquires on your credit report. Just like traditional lending, you must be careful when shopping for a payday loan. Do not apply at every online payday loan website or cash advance store that you drive by because the more applications you fill out, the lower your credit score. You must be wise and apply at only 2 or 3 payday loan lenders to preserve your credit score. To get around this issue, you can fill out an application with a cash advance broker.
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