While you generally hear about what you can do with a payday loan, have you ever really stopped to consider all of the information about what is not suitable to be used with a payday loan? For example, there are specific types of bank accounts there are typically not suitable for a payday loan due to various circumstances and ensuring that you are using the best circumstances possible is extremely important. These guidelines are of course general guidelines and each payday lender is able to select their own particular rules and enforce them as they choose, but overall these are some very good guidelines to follow.
Never use a checking account with a negative balance. These accounts typically are considered to be in bad standing due to the negative balance. Additional considerations that you should be a bit leery of is a checking account that has had a recent bounced check that shows on the account. These are typically warning signs to the payday lender that you cannot afford to pay your bills and you are unable to pay your bills, which will prevent you from being able to repay the loan when it is due. Even if this is not true, this is the perception that the payday lender will get in regards to your finances.
Business accounts are another type of account that is typically not accepted for a payday loan. The majority of lenders want to see a personal bank account that is being used. Even if you are the owner of the business, this is still typically not accepted. However, if you are self-employed and the only owner of the business there are some payday lenders who will give an exception to this rule. It is important that you contact the lender you are interested in working with before you apply to inquire if they will permit this type of account if this is all you have. Do not be discouraged if the first lender tells you no, while you are likely to receive one or two no’s you are sure to find someone who will still give you the advance if you are persistent.
The final type of checking account that you should not use is one that is closed. In several states, writing a check on a closed account, even if it is just for a payday loan is considered a crime. This means you should never do this no matter what. It is important to ensure that when you apply for the loan that the account be open and fully functional to ensure you avoid as many problems as possible.
Finally, ensure that you are using a checking account if you are applying online. While it may be tempting to try to apply with a savings account, it is not the correct account to use for a payday loan. If you do not have a checking account, you will not be able to be approved for a Payday Advance and will need to open a checking account before you attempt to apply. While it may seem a bit unfair to have to have a checking account, they are at the center of a payday advance since the loan is based on a check being written to obtain the loan.…