Sometimes, it can be difficult to get a loan when you have a poor credit score or when you are just starting to build your credit history. The lending system all over the world tends to favor individuals who have good credit rating since it shows the lenders that you are always committed to paying your debts. So, what happens if you find yourself in a tight financial situation yet you can’t borrow a personal loan since your credit score isn’t that good?
Well, a payday loan may come in handy. Payday loans present an effective cash advance mechanism that is short-term and also friendly to your financial needs. These loans are usually based on a post-dated check that will be cashed on your upcoming payday. But, the big question is, what do you need to qualify for a payday loan? Read on to find out.
Source of Income
For you to qualify for a payday loan in Montreal, you must prove that you have a steady source of income from either your business or job. Since there is no any other security involved, your proof of income is the only binding proof between you and your lender that you will be able to repay the amount borrowed plus the interest accrued on time.
If you are employed, the lender may request you to provide your employer details such as the employer name, contact information, and address. Some lenders may also approve or reject your loan request depending on how long you have been working. Typically, payday loans are available to individuals who have been working for at least one month. If you are self-employed, you will needto provide information regarding your pay cycle frequency plus the estimated amount of profit that you make from your business.
Apart from providing proof of source of income, you will also be expected to provide your personal information to facilitate payday loan processing. However, you need to keep in mind that the personal information that you provide is solely for identification purposes and nothing else. You will be expected to provide your government-issued identification document such as a valid driving license.
Your social insurance number may also be required. The lender will also ask for your phone number and home address. Your email address may not be a requirement if the transaction is done offline, but all online payday loans will require you to provide your email address.
Bank Account Details
Lastly, you will need an active bank account where the money will be deposited by the lender.You may also provide a union credit account or a prepaid card account. Your bank account must be at least one month old to qualify for a payday loan in Montreal. Apart from facilitating the receipt of the loan amount, you will also need your bank account to repay the money.
If you are applying for an online payday loan, the lender will have proper mechanisms to facilitate thorough verification and authentication of your bank details before processing your loan. Keep in mind that every step put in place by the lender is meant to safeguard both your personal and financial information against any chances of identity theft.