Cash advance loans can be a quick and convenient way to get the funding you need right away. While they’re well known to accept applications from various financial backgrounds, is it always guaranteed that everyone who applies will be approved? In this article, we’ll explore what qualifications are needed in order to qualify for a cash advance loan.
Are cash advances guaranteed?
Cash advances do not typically come with guaranteed approval. As with many loans, the lender will only agree to give an applicant money if they believe the funds will eventually be repaid. On top of that, there can also be certain legal requirements that they must adhere to. If any of these criteria are not met, then the application can be denied.
Generally speaking, many different types of applicants have had success qualifying for a cash advance. Cash advance lenders may be more lenient from a credit worthiness standpoint than conventional lenders. They know that even though their applicants sometimes come from financial hardship or have a poor credit history, there may be money solutions for them to consider. Therefore, they may be more likely to approve borrowers in these types of situations.
Requirements for cash advances
If you’re thinking about applying for a cash advance loan, there are a few requirements that you will have to meet. Here’s what you need to know.
You must be 18 years old
In most cases, contracts can only be signed by legal adults. This means that someone must reach the age of majority (18 years old) before they can officially enter this financial agreement. The applicant’s age can be validated with a government-issued ID (such as a driver’s license).
Proof of income
Cash advances are short-term loans where the expectation is that the lender will be paid back once the borrower receives their next paycheck. Therefore, as part of the loan approval process, they’ll need validation that the applicant is employed or has a steady income and expecting to be paid in the near future. To prove this, the applicant will usually bring copies of their latest paycheck stubs.
Depending on the cash advance lender, the applicant may be asked to either write the lender a check or connect their bank account (if done over the Internet). Therefore, the applicant first needs to have a working checking account.
Although credit rating is not a major factor in qualifying for a cash advance loan, the lender will still check your credit. This will be done by pulling your FICO Score, a number between 300 and 850 that indicates the strength of your creditworthiness.
Although many conventional lenders want applicants with at least a good or great credit score, cash advance lenders may not be as strict.
The bottom line
Although cash advance lenders are some of the most lenient loan providers on the market, they can’t guarantee that everyone who applies for a loan will be approved. There are certain minimum requirements that you’ll have to meet, such as being an adult, demonstrating proof of income, and having an active checking account. Other qualities, such as your credit history, will be taken into consideration, but may not be as heavily weighted as they would be with a conventional loan application.