Do you need a payday loan for your relative but are unsure whether you can get one? Don’t worry; getting a loan for someone else, such as a relative, is possible. In contrast, there are lenders available in the market who can provide you with a payday loan for your relative, keep in mind that the lender will run a background check and a credit score check on you, meaning that the application will be submitted under your name and not your relative’s.
You can contact the lender and submit your requirements by filling out the application form. Once approved by the lender, you will receive the money directly into your bank account, and then you can easily transfer the funds to your relative’s bank account.
This whole process can be risky as you’ll be the one to be questioned about the loan money and repayment of the loan. It is wise to ask your relative to fill out the application form and encourage them to apply for a payday loan because if you cannot make repayments on time, you’ll be held accountable for the same.
However, if you’re unable to convince your relative to apply for a payday loan, you can get the loan on their behalf by making all terms and conditions clear beforehand.
Few points to consider before borrowing money on behalf of a relative
- You are accountable for the loan
- The loan will be disbursed under your name
- You can get the loan under your name only and not your relative’s
- You’ll make the repayments directly to your lender and not your relative’s
- The lender will contact you regarding the loan and not your relative.
- In several cases, you can co-sign for a payday loan with your relative Statistics show that 21% of Americans have already cosigned for a loan with their relative
- Statistics prove that 35% of Americans were able to help their relative financially with payday loans
Reasons your relative is asking to apply for a payday loan on their behalf
- Credit Score – Your relative may hold a poor credit score. You hold a good credit score and can get a loan with better rates for both interest and repayment terms. Hence, your relative wants you to obtain a loan so they can make repayments with a low-interest rate.
- Existing Loans – There is a chance that your relative already has multiple loans under their name, and they do not want to add up more to that list. Hence, they are asking you to get a loan under your name.
Another reason can be that they may currently be in a different location where they cannot easily get a loan under their name; therefore, they are getting your help in obtaining a loan.
One more reason can be that they are not an authorized citizen of the US and hence are not eligible to get a loan.
Eligibility to get a payday loan on behalf of your relative
- You should be an authorized citizen of the US
- You have a valid address proof
- You’re above the age of 18 years
- You hold a valid SSN
- You’re earning a potential income
- Will it not be illegal to obtain a payday loan for a relative?
There is no problem in getting a payday loan for your relative. As long as you fill in the details under your name, you can apply for a payday loan without any hassle. However, it is important to keep a note of the loan repayments as you’ll be responsible for making payments on time and not your relative.
Is it risky to obtain a payday loan for a relative?
There is no risk involved while obtaining a loan for your relative as long as you’re making timely payments of the loan, but once an issue occurs in repayment of the loan, you’ll be the one to be questioned by the lender. This is because the loan application is under your name, even if you’re taking out the loan for your relative. Your credit history, bank details, name and other important details are mentioned in the application form with the lender, meaning only you have made an agreement with the lender and not your relative who has the money.
You can assure the lender that money will be paid back by the relative, but it is your responsibility to get the funds back from your relative and make payments to the lender. In any case, if you fail to do so, there can be risk involved.