Small loans attract borrowers. They are easy to get. These payday loans are the cheapest ones. Lending companies take moderate commission for such a credit.
It is possible to apply for a payday loan online. Lending companies need basic documents. Based on them, they will take a decision whether to issue a small loan or not.
Importance Of Employment Agreement
When a borrower decides to apply for a small loan, he has to be ready to prepare many documents. Financial companies want to make sure a person will pay a small loan back. Here are the basic documents that have to be submitted:
- A copy of a passport. This document is essential to start a loan application process. Small loans are issued to American citizens only. Even if a person has a working permit, it will not help.
- Income statement. It is one of the key documents. The higher the income, the better the chance a credit will be returned. People who have higher revenues are issued larger credits. They can get up to 2000 dollars.
- Employment agreement. It is a basic document to show. Lending companies want to know to which sort of firm a borrower is employed. They evaluate employment agreements.
- A credit score. It is a score that has to be high. It identifies how well a borrower pays small loans back. It is assigned by financial bureau.
When lending companies take decisions on credit issuance they examine how well an company a person works for functions. If it is a reliable company with long history, it will pay salary for its workers. It is one more guarantee that a borrower will have finance to return a small loan.
Duration of an employment contract also matters. The longer it is, the higher the chance a person will pay a borrowing back. Working place and working contract are fundamental documents that will influence final decision of a lender.
If a person does not have money to return a loan, this finance will be taken from the salary. Lending companies can do that with a court decision. A borrower will have to pay a body of a credit plus a huge fine.
If a person is not employed he can still find a way out. He will have to negotiate with a borrower. He can guarantee a loan by his property. In case a small loan is not paid back, this property will be confiscated. It makes it necessary to return small loans in time.