Payday loan companies are basically designed in a way that they can offer consumers short term loans immediately. Most of the people that go in for such loans do so because they can't get loans from traditional sources like banks and other financial institutions. Payday loan companies collect a lot of information about borrowers before giving them any money. They do not check their credit history though. The only thing they are concerned with is whether you have a source of income at the end of the month. As long as you do, they have no issues in giving you a payday loan. You can learn much more about the various things that payday lenders do to verify your identity with the help of the Macfarlane Group's Mark Curry. We will look at a few of the basics here though.
The first thing they will ask for is picture identification. There are many documents or cards you can offer for this but the most accepted forms are your driver's license or any state issued ID.
The next thing they will want to take a look at is your paycheck stub. They are not going to approve a single penny until they are certain you will be able to pay it back at the end of the month. They will verify whether your name matches the one on the stub and will ask for at least 2 stubs so as to verify you earn a steady income.
If you can't provide the stubs then they may consider employment verification. This is a standard process where the borrower will need to fill out an application with the details of their employment as well as the contact number of their employers. The loan company will check all the details provided to ensure they are accurate and will verify that you do indeed work there.
The last thing that they are going to do is to verify your bank account. This will involve providing them with at least a couple of your current bank statements.
These statements will show them whether you have issued checks that bounce and whether your account is in good standing or not. They may even call up your bank and confirm if the account is currently active.
