Few things in today’s world are easier than getting a payday loan. The same, unfortunately cannot be said about paying back the loan. Unlike getting a mortgage or a personal loan where extensive checks are involved, payday loans rely on minimal documentation. Lenders are competing amongst themselves to reduce the hassles that customers have to face and win over more customers. Here is the simple three step procedure:
ID & Income Verification: The payday lender wants to know that you are using your true identity to take the loan. It is for this case that they will ask you to show or submit some form of government issued photo identification. Payday lenders also need to verify your income to ensure that you payback. However, income verification means something very different in the context of a payday loan. The lender does not need salary slips or stable track record.
Underwriting: As soon as your application is complete, the payday lender will forward it to his underwriting team. This team will respond to the application as per a defined service level.
Post-dated Check: In case, your payday loan has been approved, you will have to give your payday lender post-dated cheques that he/she can encash later. However, nowadays since everything is done electronically, your payday lender may ask you to authorize his direct debit instead of the post dated cheques.