Payday loans are designed to be easy and simple to access by almost everyone. There are no major criteria to qualify for these unsecured loans. As long as a person is of legal age and can show proof of employment and expected income they can qualify and take out a payday loan. Compared to other conventional loan sources, payday loans are easier to qualify for and require no security.
The only major requirement to be able to take out a payday loan is to be an employee working and expecting an income. This is very important, because of the structure of the payday lending process. It involves advancing a borrower with quick needed cash that has to be repaid in full at the next payday. The borrower would thus have to show documentation that they are employed and receive regular income that would be able to cover out the loan plus accrued interest.
Unlike most other loan types and sources, a person’s ability to access the loan does not depend on their credit history or rating. Usually, lenders use the credit rating of a borrower to measure the risk associated with lending to that person and making lending decisions. People with poor credit usually find it hard to access regular loans or have to pay higher for it. On the other hand almost everyone can take out a Payday loan.