How Much Money Can You Get In a Payday Advance?
If you’re ever in a cash crunch and need to borrow money, it’s a good idea to have a rough gauge of how much you can borrow. Of course, it’s usually not a good idea to take out the maximum allowed. If you borrow more than you need, you’ll just end up having to repay that amount, plus interest.
The goal should be to take out as much money as you need, maybe even 5% to 10% extra just in case unexpected costs come up. Before you can even do that though, you need to make sure that you actually can take out that amount.
So what do payday advance lenders look at when they’re deciding how much money to give you?
Payday Lenders Prefer Borrowers Over Thirty
Age plays an important factor. If you’re younger, lenders find that statistically you’re more likely to default than someone in a similar financial situation who’s 35.
In the grand scheme of things however, age isn’t a huge factor. If the rest of the factors lenders look at line up, you’ll still be able to get your full loan amount even if you’re under 30.
Your Monthly Expenses
Your expenses are another major factor. Is this payday advance something you need just to cover a sudden unexpected cause, or are your expenses too high on a month to month basis?
If your expenses are extremely high, payday lenders might be hesitant to give you too much money, because they know it’ll be a lot more difficult for you to set aside extra money to pay them back with.
Your Monthly Income
This is perhaps the most important factor. If you have a high paying job and just need some emergency cash for something that came up out of the blue, you’re very likely to get all the money you want.
On the other hand, if your job doesn’t pay all that much, it’s much harder to get a large loan. You can still get a lot of money; but you might not get all that you ask for.
Keep in mind that paycheck stability is also a small factor. If you’ve worked at the same place earning $1,500 a month for 2 years, that looks a lot better than if you have a sales position which pays $800 to $2,000 a month depending on how you do.
The Lender’s Lending Maximum
Finally, the amount you can borrow depends a lot on the lender’s lending maximum. Generally this falls between $500 to $1,500; though most payday advance lenders are happy to give out the full $1,500 to anyone who qualifies.
If you have a great job, low expenses and are over 30, you’ll probably be able to borrow as much as you want. If you have a lower paying job, higher expenses and fall in a younger age bracket, lenders may only be willing to lend you a few hundred dollars.