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How do payday loan companies qualify a borrower?

Proof of employment and acceptable spending habits.

Payday loan companies usually have the borrower fax the following documents in for review:

  • A copy of a borrower's most recent bank statement. This is to check for a few things: How much money has been going into the account--and from whom. How much money has been going out of the account--and to where. Are there already other payday loans the person is paying on? In other words, will the borrower be able to pay back the loan--and fees?
  • A copy of the borrower's most recent pay stub. This is to verify that the borrower is currently employed and getting a paycheck.
  • A copy of a cancelled/voided personal check. This is used to get bank information--like the borrower's bank account number and bank routing information--so a direct deposit of the loan can be transferred. This information is also used to withdraw fees directly from a borrower's bank account when fees are due.

Beware faxless payday loans.

Some payday loan companies claim their process is "faxless"--no faxing is required. It has been reported to that at least one "faxless" company wants to get access to a person's bank account to verify banking statements and history online. (This is risky for the borrower--divulging a username and password is never a recommended practice.) If faced with the choice of giving up a username and password or faxing documents, it's much safer to fax documents with personal information.

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July 21 - WeGiveCash claimed we could get $1,500. But, after entering qualifying customer information, we were declined and then forwarded to another Web site to re-apply.
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