An urgent expense just cropped up. Maybe you need to bring your old mini-van over to the neighborhood mechanic so that you can get it back on the road. Maybe you need to replace the smartphone that slipped out of your pocket when you were riding the bus. Maybe your AC unit is on the fritz, and you need to get it fixed before the next sweltering heat wave rolls in. Whatever the expense happens to be, you need to take care of it quickly.
The only problem is that you don’t have enough emergency savings to pay for it. You can’t set this expense aside and scrounge for a few months so that you can afford it. You have to pay for it right away. So, what can you do?
You could apply for an online loan. If you’ve ever wondered why are online loans popular, one of the reasons is that they tend to have fast application processes. So, if you need to borrow funds to cover an emergency expense, you won’t have to wait long to submit an application and learn about your approval status. If you get approved, you can get access to your funds shortly afterward and use them to cover your urgent expense as soon as possible. It could be a huge source of relief.
But getting an online loan isn’t a guarantee. You will have to meet certain requirements to even be considered for approval. These are four common requirements that online providers set for applicants.
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1. Legal Age of Contract
First things first, you will need to be the legal age of the contract (sometimes called the age of majority). In most states, the legal age of a contract is 18 years old. In certain states, like Alabama and Nebraska, this is 19 years old. You will not be able to receive an online loan if you are considered a minor.
2. Consistent Stream of Income
Providers will choose applicants that can follow a repayment schedule after using their online loan. Repayments will be challenging to manage without a consistent stream of income. So, if your income is clearly inconsistent (or worse, non-existent), you will be at a higher risk of making late payments and going into default. This is a risk that providers won’t want to take.
3. Active Bank Account
You will need to have an “active” bank account. If you don’t have a bank account, you will not meet this qualification. And if you happen to have a bank account, but it’s inactive or dormant, you will also fail to meet the stuff.
An active bank account can prove that you have a consistent and reliable stream of income. How? A provider can review your most recent bank statements, which should list your latest paycheck deposits.
Another reason why you’ll need to have an active bank account is that you will need an account to receive the online loan. Your loan won’t come in the form of cash. It will come as a digital transfer of funds. So, the provider will need a legitimate account to transfer those funds to you.
4. Legal Citizenship
Citizenship is another requirement that you will have to meet. So, if you’re using a provider from the United States, you will have to be a United States citizen to apply. If you are a permanent resident (aka. you own a green card) you can also submit an application. You won’t be eligible when you’re a legal citizen of another country. You will have to look for a provider that caters to that location.
You may encounter other requirements when applying for an online loan, like an active email address, a valid phone number or a good credit score. Check the website’s FAQ page to find out exactly what will qualify or disqualify you from the borrowing option.
Make sure that you check off all of these requirements before applying for an online loan. They will really improve your chances of getting approved.