What do Private Lenders Look at with Payday Loan Applications?

There are certain things that lenders tend to look for in payday loan applications. If you plan on trying to get one of these loans, you will need to have this information. Take the time to learn the facts so you will be at a significant advantage when it comes to getting the money you want. Too many people rush into this process, which puts them at a distinct disadvantage. You don’t know to assume that you already know everything you need to.


One of the big characteristics that a lender will look for in a borrower is reliability. This means a stable job history. Those who have had the same job for quite a while have a better overall chance of getting approved.

If you have had several jobs in the past few years, your application might get rejected. The lender could interpret this as your being flakey or unreliable. If you are going to borrow a lot of money, this is something that the lender is really going to focus on hard.


There is simply no way around it—you will have to give the lender your income when you apply for a payday loan. They will take a look at how much you make from your job and decide if it is adequate for paying back what you are going to owe by the due date.

The amount of money that you make is certainly one of the most important factors that the lender is going to look at on your application. The more you want to borrow, the more money you will have to make with each paycheck.

Credit Score and       History

Yes, even private lenders that give out payday loans run credit checks on applicants. This doesn’t mean that you should panic if you don’t have good credit though. The lender is indeed going to run a credit check to see what your score and history are both like.

A low credit score is usually not a big problem for private lenders, but there are certain things on your credit history that could be an issue. For example, if you have defaulted on any loans in the past. This is a red flag to lenders, but it is not the only one.

Before you go ahead and start applying for any loans, it is important that you familiarize yourself with the overall state of your credit. This will give you a clearer picture of what each lender that you apply with is going to see, and therefore what your chances of approval are.

Outstanding Debt

When each lender checks your credit report, they are going to see what outstanding debt you have. The more debt you currently have to take care of, the less likely it is that you will be approved for a payday loan. Lenders really don’t like to give money to people who are already swimming in debt.

You might want to think about reducing some of your debt before you even apply for a payday loan. This will boost your chances of approval in a very big way. Try to chip away at your debt so your application will look a lot more attractive.

There is always a chance that you will get approved. In fact, a lot of people use payday loans to pay off their credit card debt. This is something that can work really well for a lot of people. If you have a balance of a few hundred dollars on your card, you should really consider this option.

Credit Utilization

Even your credit utilization is going to play an important role in whether or not you are approved for a payday loan. You should ideally utilize less than thirty percent of your available credit, but also not zero. It is important that you have some credit utilization, as this shows the lender that you are responsible.

One of the biggest mistakes that people make with their credit is that they use either too much or too little. Around 20-25 percent is typically the sweet spot, so you will need to keep that in mind. This too can help you get the money you need in a tight financial jam.

While there are never any guarantees that you will get approved for a payday loan, it is still crucial that you know what lenders look for. When you are filling out your payday loan applications, you will need to keep all of this information in mind. It can help you to get the best possible outcome with the loan you require. Payday loans are great for emergency expenses and many other things, but you need to know how to go about getting on the lender’s good side from the start.

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