The Checking Account Requirement for Paycheck Advances

Money troubles happen to most of us at one time or another. Unexpected things happen. The car might break down, you might get a traffic ticket, or perhaps your child gets the flu and you have to take them to an urgent care clinic. Whatever the unexpected expense, if you don’t have an emergency fund in place, you might need to get a paycheck advance. A paycheck advance is a short-term loan for a small amount that can help you pay for your financial needs until the next payday, when your loan is due. There are certain requirements that you should know about before you apply for a paycheck advance. One of these requirements is that you have a checking account.

Getting Your Money

It may seem unfair that payday lenders, almost universally, require you to have a checking account in order to get a short-term loan. In many cases, payday lenders will deposit your cash advance into your checking account. It is convenient for you, because you don’t have to go pick up a check, and then you don’t have to drive the check to your bank in order to deposit it. It also saves the lender time and money.

Getting Repaid

Another reason why you are required to have a checking account in order to get a paycheck advance is that the lender wants to get his money back. While most people are honest and would pay the loan back on time, there are a few who would probably try to take advantage of a payday lender and not pay them back. A payday lender can ensure that they will get repaid by requiring you to have a checking account. In many cases, the lender will automatically take the money out of your account on your payday. This saves you time, because you don’t have to physically drive anywhere to make your payment. If you need a longer time to pay off your loan, talk to your lender before the date you are supposed to pay the loan back. In many cases, you can extend your loan, however, you will have to pay additional fees.

Do You Need Good Credit?

As long as you have steady employment, you should be able to get a paycheck advance, even if your credit is less than stellar. Because paycheck lenders take the money directly out of your checking account, they don’t have to be as picky about your credit record as other types of lenders. If you have been employed for a while, you should be able to get a paycheck advance, unless you have bounced several checks in the past. Payday lenders want to make sure that they get paid back. They know that as long as you have a checking account and don’t bounce checks, they will probably get their money back.

Are There Other Requirements?

In addition to having a checking account and a steady job, there are a few other requirements that you should know about before you apply for a paycheck advance. You will need to be 18 years old. There will be minimum income requirements as well.