Although it’s officially been quite some time since the recession ended, the financial woes of the economy are still being felt by many communities. For those families and individuals that need short term financial help, short term loans are often the best borrowing option.
These loans are ideal for those with no credit or poor credit – those who can’t qualify for traditional personal loans with banks and other financial institutions. Instead, these loans are offered by alternative lenders who take on the risk of lending to those with subprime credit.
So how do you qualify for a short term loan? It’s not difficult, but there are things you want to take into consideration before applying. Here is a short list of basic requirements, though the lender you’re working with may have additional standards you might have to meet.
Checking Account in Good Standing
Most lenders prefer to deposit your loan directly into a checking account, so it’s important to have a checking account in good standing, free of fees or negative balances. If you don’t have checking account, you may still be able to get a loan, but it will most likely disqualify you with most lenders.
Lenders want to know that you can repay a loan on time, so they will want to see that you have a job and steady income. Even if you don’t have a job, but still have a fixed income, such as a Social Security check, you may still be able to get the loan, so focus on the income rather than its source.
Over 18 Years of Age
You can only get a small personal loan if you are 18 or over; if not, consider asking your parents or other family members for financial assistance. You may be able to get a credit card if you have one of your parents cosign for you, too.
These are the basic requirements, but as stated, there may be other things you will have to do to get a loan, and these additional requirements vary by lender and location.
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