Payday Loans Based on Employment
According to the data, there are 157,174 employed individuals in the US as of January 2022. Employees are the people hired to work in a company or for the person who hired them. The payment for their service or salary depends on their job and contract.
There are four (4) main types of employment in a company, these are:
- Part-time employment: They are typically paid per hour and work not more than 40 hours a week.
- Full-time employment: Regular employees are eligible for company benefits.
- Seasonal employment: Hired employees when a company needs more staffing during peak season.
- Temporary employment: A project-based employee or a reliever for a regular employee who has gone on leave.
Being an individual with a stable job makes you eligible for different loan programs that you might need in the future. Applying for loans can also affect your credit score. These loans are bank or credit union loans, online loans, paycheck advances sponsored by the employer, and payday loans.
Payday Loans: Are All Employed Individuals Eligible to Apply?
In applying for payday loans that are not sponsored or will be coming from your company, the main requirement is to have a stable job and income. A lending company might not focus on your credit and bank history, but they will on your employment background.
Full-time employees will be more likely to be quickly approved as they have a more stable income. It is still possible for part-time and temporary employees to apply for a payday loan as the lenders will look into your current work situation. It will not matter if you are a new employee or have been in the same company for more than a year.
Therefore, all employed applicants are eligible to apply for a payday loan. Be reminded that lending companies prefer their applicant’s job stability and history. It means if your employment background doesn’t pass their evaluation, you can be denied.
Requirements and Tips on Applying for a Payday Loan
Applying for a payday loan is easy as they will only require you to be at legal age and employed. Fill up the form and prepare the needed documents; note that lenders might ask for more documents if needed. Approval is quick, and you can receive the money in cash or on your account on the same day. Here are some great tips to guarantee your approval.
- Check your bank and credit history.
- Borrow money that you can pay.
- Provide legit and complete documents.
- Contact the lending company if you have questions about the application.
Nowadays, it is common for employees to need instant money to pay bills due to emergencies. These people tend to choose and apply for payday loans from lending companies both offline and online. While these have their benefits, it is still advisable for you to always look for alternatives and only apply for the loan as your last resort.