How Do Payday Loan Companies Verify Your Identity

Payday loans are designed to meet the pressing needs of the lenders who are in great need of funds but do not have sufficient documentation or credit score to get the same from the banks. In most of the cases the borrowers do not have ample time to run after the traditional lenders for  the loans and they are satisfied with the payday loan lenders who can offer them the money within a matter of a few hours with no credit checks. However, one must understand that the lenders will definitely do some bit of verification to ascertain that the lending decisions they are making are not going to bring losses to them and they can get their money as per the agreed terms.

Here are some of the ways in which the payday loan lenders make their verification process completed:

Picture Identification

payday_loansAs a borrower one needs to produce the identification card issued by the state government or a copy of the driver’s license at the time of making an application for the payday loans no credit check.

Paycheck Stub

One has to produce paycheck stubs in order to qualify for the loans. Most of the payday companies require a minimum of 2-3 months paychecks to understand the income of the individuals and they use the same to validate the identification of the individuals.

Employment Verification

Yet another way of verifying a borrowers identity is through the employment details which they are required to submit at the time of application. The details related to the place of work, name of the employer, nature of work and the contact details of the employer are required by the lender. The lenders verify the employers credentials and check if the applicant is really an employee of the said company.

Verification Of Bank Account

Last but not the least , lenders require the bank details of the borrowers. These are proof enough to verify the credentials of the borrower. The payday companies even ask for the recent bank statements which confirms the financial well being of the borrowers and their capacity to take the loans.

The aforementioned verification process is often looked at as an impediment and a process which delays the lending process. However, it is essential to protect the rights of the borrowers and the lenders too and save them from  the scamsters who are on the lookout of the confidential data of the consumers to dupe them of their hard earned money.

As a part of the loan application process the borrowers are required to provide complete details pertaining to their identification, banking details, employment and there SSN and the residence details. You are not required to upload any data related to these information but the verification team of the lenders check on their own the details of the credentials and then asecertain the loan approval.

Once you submit the application form, you show your interest towards getting the loan and the payday loan officers may get in touch with you for any clarifications they seek. Once the approval is done you may be required to sign the loan agreement or accept the same online.

Post verification the loans gets approved in a short time span of 30 minutes after which the lenders take a maximum of 24 hours to wire the money to the account mentioned in the application form.

Safety of information is of great importance these days. One can hear several cases of identity theft and online scams where a lot of people have lost their hard earned money. Payday loans companies are taking all the steps to ensure that their customers information is secured. Information is procured and transmitted via SSL encryption technological links and the lenders keep upgrading to the new technologies in the area.