loans over the phone

Sometimes, our bills can’t wait for the next paycheck to hit that bank account. Because 30% of Americans have poor or bad credit, they may think that bad credit loans, such as payday loans, are their only option for financial assistance.1 However, that is not the case! If you’re searching for loans over the phone, read on to learn more!

What Is a Payday Loan?

A payday loan is essentially a cash advance on a person’s upcoming paycheck. They’re one of the many types of short term cash loans out there. They can also be considered instant loans. The amount with payday loans is $500. They usually come with extremely high-interest rates and very short repayment periods.  

How the Application With Payday Loans Works  

A borrower goes to a payday lender (there are direct lenders and indirect lenders) and completes an application/loan request. If approved for the payday loan, the borrower writes a check (or authorizes a withdrawal from their bank account) for the amount they want to borrow, plus any of the lender’s fees and interest. The payday lender then gives the borrower the loan amount. While a loan from a bank may take seven to ten business days to process, a payday lender can put cash in your hands in a matter of hours. For payday loans over the phone or a mobile device, funds can usually show up on the same day.  

At the end of the loan term (usually about 14 days), the lender cashes the borrower’s check or posts the withdrawal to their bank account. 

The problem is that many borrowers can’t afford to repay the high fees and interest by the due date. This can lead to a cycle of debt that’s difficult to escape. A study conducted in North Dakota by the Center for Responsible Lending found that 46% of payday loan borrowers default.2

One alternative to payday loans that is widely considered a more affordable and safe option would be personal installment loans. While many installment loan lenders offer online applications, you would need to reach out to specific lenders to see if they offer over-the-phone applications.

Mobile Applications for Loans By Phone 

Many financial institutions allow applicants to apply for a loan online. For borrowers that may not have access to a laptop or desktop computer—or don’t want to use one—certain lenders may offer paper applications.

What Do You Need To Apply for a Loan Over the Phone?

At the bare minimum, the following is what you will need for most loans over the phone:  

Government Issued ID

You can apply for a loan using a state-issued driver’s license, state ID, or passport. The ID will need to have a photo and list your legal name. 

Social Security Number 

There’s a chance it’s not on your ID. In that case, some lenders may require a social security card or other government-issued documents that have your social security number, like a W-2 tax form.   

Proof of Income

Be ready to produce pay stubs from the last two or three pay periods. If you work for yourself, you can provide your tax records (like Form 1099) and a history of your bank deposits over the last two months.  

Active Checking Account 

Ideally, your checking account should not be overdrawn. This is the account that the lender will draw from when repayment is due. 

Be Okay With a Credit Check 

A credit check is needed with most traditional lenders (both direct lenders and indirect lenders). There are two types of credit checks: a hard credit check and a soft credit check. With a loan application for payday loans, personal loan options, cash advances, or another loan, there will be a hard credit check that allows lenders to check your credit history. Each credit check can bring down your credit score a few points, but usually, those points return after some time. 

Valid Email Address 

Your lender will send all of your important documents—like the loan agreement and terms—to this address. A valid email is required to apply for payday loans over the phone.   

Your Phone 

Naturally, to get a loan over the phone, you will need a reliable mobile phone or mobile device. Before you start looking for any loans, make sure that your device is updated with the latest version of its operating system. That way, you’ll have all the available protection against any threats or viruses.  

Today’s smartphones can access any website, and lots of cash advance loan lenders have apps that can be downloaded at no cost from any mobile app store. However, if you decide to download any app from a lender, be sure that you don’t fly through the terms, conditions, and allowances. Even though applying for a loan over the phone is relatively simple, remember that you provide some of your most sensitive personal information to private companies. You must know how this data will be used and protected. 

Some people are not comfortable dealing with an online application process or using mobile technology, especially when providing personal financial information. Nearly all lenders have toll-free numbers available for anyone who wants to use a landline and speak with a live operator. It will most likely take a bit longer than applying online or through an app, but speaking with a person can provide an opportunity to ask questions about the process.

Other Loans Over the Phone 

Friends and Family Loan  

A loan from a friend or family member avoids the hassle and restricts information from a credit check and loan application process. And if they like you, you could borrow cash with little to no interest! 

Personal Loans 

Personal loans can be a great alternative to payday or title loans. You can still be approved even with a less-than-perfect credit score, and you have more time to repay the loan. In addition, these loans tend to carry lower rates and better terms than your average payday or title loans. You can find these loans. 

Cash advance loans 

Cash advances are short-term loans that make a small amount of cash available, usually on the same business day that a borrower applies. Although convenient, cash advance loans can come with higher interest rates and fees, so keep that in mind. 

Home Equity Loans 

These are forms of installment loans that homeowners can use to borrow from the equity of the home. The loan amount will vary on the home’s equity. Although those loans may be started online, they usually require more with the process, and instant approval may not be available. So, if you need funds as soon as a business day or less than a week, these may not work. 

Credit Cards 

If you already have a credit card whose credit limit hasn’t been reached, it could work to get you the urgent cash you need. If you need to apply for a new one, you can do so over the phone. One thing to look out for is the potentially high-interest rates. 

Bad Credit? Try Getting a Loan Over the Phone 

In addition to being one of the fastest ways to get cash, personal loan options are one of the best solutions for people who have not-so-good or even bad credit. Installment lenders often accept less-than-perfect credit. Having bad credit is what keeps people out of favor with traditional lenders like banks. Overall—whether inquiring with direct or third-party lenders—a lender’s primary concern is that you have the means to repay the cash you are borrowing.   

Understanding The Factors That Affect Credit Scores

A credit score is a number that illustrates the level of risk that a lender will take if they choose to loan money to a borrower. These are the five significant factors detailed in your credit report, which you can get from the credit bureaus. Each report bears weight in determining your score. Here they are below, with that weight listed in percentages: 

Payment History35%Clear record of bills paid on time; delinquent accounts or late payments harm credit.
Credit Utilization30%Ratio of credit used vs. available credit; lower utilization (<=30%) indicates responsible account management.
Credit History15%Record of current and past accounts; longer history reflects ability to manage credit over time.
New Credit10%Applying for new credit accounts can signal financial need; too many new accounts in a short period may raise concerns.
Credit Mix10%Variety of account types demonstrates ability to handle different payment schedules.

FAQS for Loans By Phone

How secure is my personal and financial information when applying for a loan over the phone? 

Security for phone loans can vary based on the lender’s protocols. Always ensure the lender uses encrypted communication, adheres to data protection standards, and does not share your information without your consent. When working with an indirect lender vs. a direct lender, it is important to know how your information is shared.

Are there any prerequisites for the mobile devices used for loans by phone? 

Your mobile device should ideally be updated with the latest version of its operating system. This ensures maximum protection against potential threats or viruses when accessing lending platforms.

What is a direct lender, and how does it differ from other types of lenders when applying for a phone loan?

A direct lender is a financial institution or entity that provides loans directly to the borrower. In contrast, with non-direct lenders or brokers, your application might be shared with multiple third-party lenders to find a suitable match, which could increase the number of credit checks or the risk of sharing your personal information. Phone loans from direct lenders might offer more straightforward terms, quicker response times, and potentially lower fees since there’s no middleman involved.

If I face technical issues during the application process, what should I do?

Most phone loan providers have customer support available via phone or email. If you face technical issues, it’s best to contact their support team for assistance. Some platforms may also offer FAQ sections or troubleshooting guides to address common issues.

CreditNinja’s Thoughts  

In summary, mobile phones have changed the way we do just about everything. It is now possible to apply and secure a loan in just a few minutes, which can help pull you out of a financial crisis.

But taking advantage of the convenience of mobile loans doesn’t mean that you don’t have to do homework and research. Remember that a loan is more than just a solution to a “right now” problem—it could be a part of your life for weeks or months. So, before you hit “send” to apply for any loans over the phone, CreditNinja wants to remind you to shop around, compare rates, and understand the terms of any financial commitment you take on, whether a personal loan or a payday loan for your cash emergency.  


  1. How Many Americans Have Bad Credit? | Fox Business
  2. Study Finds High Default Rates in Payday Lending | The Hill
  3. 15+ Payday Loan Statistics for 2021 | Balancing Everything
  4. Personal Loans: What Are the Basic Requirements to Qualify for a Payday Loan? | Investopedia
  5. Consumer Financial Protection Bureau (CFPB) Definition | Investopedia

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