Many customers call for loans and aren’t clear on the approvals process.  We, and most reputable lenders, have some basic requirements for pre-approval of your application that are stated on our website.  Once we receive your application, we look at additional factors to approve or deny the loan and to determine how much you qualify to borrow.   I’m going to explain how to set yourself up to get approved every time.

First, be sure to enter your application accurately.  The loan department will look to see that what you entered matches the backup documents you send over:  income, paydate, account numbers, addresses, etc..  If your address is different on your application, bank statement, and paystub, that’s a red flag.  Next the lender will check industry software to be sure that your social security number, name, and address match.  Tip:  Keep your address updated with the Social Security Administration or you might come back without an address match.  

The next place the loan office looks is at your bank account.  Your bank account should be with a major bank or a credit union.  We cannot process loan transactions on card accounts (like Metabank.)  Many customers have occasional NSFs (insufficient fund notations).  That’s not always a problem, but if you have many, many of them, it’s a mark down against the amount you can borrow.  Also, a system called Veritrac lets them check to see if your account is open and in good standing or if it’s overdrawn, has many stopped payments, or doesn’t give and receive electronic transfers.   Tip:  if you’ve had any account issues lately, explain that up front when making your application.

Last they will check a system called Teletrack to see how many loans you have out already with other companies, how many inquiries have been made by you with other loan companies and when, and if you’ve ever not paid a company back.  Tip:  don’t skip out on paying a lender because no one in the industry will loan to you again until you make good.  It’s better to work out a payment arrangement if possible.  Also, don’t call 10 companies about loans in one day.  Start with one and wait to hear before moving on.  Be up front about other loans you might currently have out, also.

The basic requirements begin with depositing at least $1200 per month in your bank account.  Many customers have the required income via paycheck, child support, alimony, SSI, and/or disability but some do not deposit the required amount into the bank.   We do need to see a consistent pattern of depositing money into the account.   The best way to get approved is to set up direct deposit with your bank.  When a lender sees an account that’s been open and active with sufficient deposits, you are a good risk.  Next set up other transactions to automatically be taken out of your account.  Could be a phone bill, gym membership, car payment, etc..  The lender wants to see a bank account that is stable and in use.   

Assuming everything looks good, the loan department will now compare your deposited income to the amount you have requested.  You will typically not get more than 25% of your income.  Also, first time customers must have perfect applications to get a maximum amount of $500.  If things aren’t perfect, expect to prove yourself as a good risk with a lower amount by paying fees on time before getting a maximum amount.