by Ben Sweiry ·
Modified on 30 April, 2024
No, it is not super difficult to get approved for a payday loan, but it does depend on various factors. It is therefore important to understand why some applications are declined, which types of payday loans are easier to get approved for, and how quickly you can secure funds can make the process smoother. Although payday loans can be easier to get approval for than traditional bank loans, factors like credit score and income will still play crucial roles in this process.
- Getting approved for a payday loan is actually quite straightforward for many borrowers across America.
- The approval rate for payday loans annually typically ranges from 60% to 80%, depending on various factors such as lender policies, borrower qualifications, economic conditions, and regulatory changes.
- Factors such as credit score, income, and lender policies influence approval rates.
Why Am I Getting Declined for Payday Loans?
If you find yourself getting rejections on your payday loan applications, this could be for a number of reasons as lenders consider several factors when looking at an applicant. These reasons may include:
Insufficient Income: Lenders typically require proof of steady income to ensure you can repay the loan. This is usually $800 per month and you must have a checking account for your loan to be paid into and repaid out of. If your income doesn’t meet their criteria, you may be declined.
Poor Credit History: Whilst our payday lenders do not require their borrowers to have perfect credit scores, if you do have an extremely low credit score or recent defaults, this may lead to rejection, especially if you are looking at riskier, unsecured loans.
Multiple Outstanding Loans: Lenders may decline applications if you already have several outstanding payday loans, as to them, this could suggest that you are financial unstable.
Which Payday Loans are Easiest to Get Approved For?
Some types of payday loans have higher approval rates than others. At Dime Alley, we offer a wide range of loan varieties to suit your personal financial requirements.
Payday Loans: Our online lenders understand that you may be going through a rough patch, and therefore, many of our lenders have less stringent criteria compared to traditional banks, making them easier to qualify for.
No Credit Check Loans: Some of our lenders offer payday loans without conducting credit checks, focusing instead on income and employment status.
Installment Loans: Our installment loan option allows you to repay the borrowed amount over several installments, which may increase your chances of approval by offering a more manageable repayment structure.
How Fast Can I Get a Payday Loan?
At Dime Alley, we are proud to be able to offer a same-day solution which allows for borrowing funds instantly. Our entirely online application process ensures quick approval right on your screen, allowing you to borrow $300 or $500 on the very day of application.
In contrast, applying in person at a physical payday loan store may result in same-day approval and funding, but it can be slower compared to our online option.
Once approved, your funds are usually transferred electronically to your bank account, which may take one to two business days to process, depending on your bank’s policies.
What Credit Do I Need for a Payday Loan?
Our lenders do look at borrowers with a range of credit scores. Some lenders prefer scores of 500-600, whereas others look at applicants with lower scores. Alternatively, if you opt for a payday loan without a credit check, your credit score may not be a determining factor in approval at all.
One thing to bear in mind, however, is that lenders usually prioritize your ability to repay the loan, so a steady income from employment or benefits is crucial, regardless of your credit score.