Is it Difficult to get a Payday Loan?

If you have not had a payday loan before, then you may wonder whether it is difficult to get one. If you have been turned down for loans in the past, then you may worry that this will also be the case with a payday loan. However, payday lenders do differ from many standard lenders in the way that they operate and so even if you have been turned down for other loans, there is still a good chance that you will be accepted for a payday loan. You may also feel that it will be complicated to apply or that you will have trouble finding a lender but you should find that these are easy too.

Application Acceptance

You may worry that you will not be accepted for a payday loan. This could be because you know that you are not good at handling money or that you have been turned down for loans before. However this may not be the case with this type of loan as it is not form a traditional lender and works quite differently.

There are legal criteria that they have to follow in order to lend to someone as well as general criteria that they will have. These are:

– Age must be 18 years or over
– Must have a UK address and be able to provide proof of address
– Must have an income

Most people who are looking to borrow money would be able to fit these criteria and so would be able to have a payday loan. There are a number of checks that banks do which they do not and this means that more people are eligible for them.

No credit check

Lenders will normally do a credit check. This means that they take a look at your credit record and see whether they want to lend to you. It is commonly thought that you get a score determined by your past borrowing record and lenders use this. Actually there is no such score. A credit record just shows what bills you regularly pay, what your income is, what money you owe and any debt problems you have had. From this information lenders will make up their own minds as to whether they want to lend to you. They all have different criteria and so if you get turned down by one, you may not be turned down by another. Some lenders like lending to someone who has missed a few repayments because they will make more money out of them if they do this again, whereas other would prefer someone that always repays on time.

No income/disposable income check

For some loans, such as mortgages, a check is done on your income and on how much disposable income. This means that your earnings are looked at as well as how much you have left once you have paid out all of your bills. This is done because they want to check that you will have enough money to be able to afford the repayments. This is understandable if you are taking out a long term loan as you will have a commitment to paying each month for a long time. When you just have a one off payment, as is often the case with a payday loan, you only have to find this money once.

Application Process

Some people worry more about the application process. It is understandable to be worried about filling out forms or having to provide lots of information that you may not know. However, it can be a lot simpler than you think. Firstly you will not have to get out your pen and fill out any paperwork. The main ways to apply are:

– Online
– Telephone
– Text

Therefore you can just type of few details or speak to someone and they will do it all for you. It is really simple and therefore you do not have to worry about the process. If you have a high street payday lender you will be able to do this in person without even having to make a telephone call. You will need to have some proof of ID which means something that proves that you are who you say you are. This could be anything such as a household bill, bank statement or similar. It has to be recent, official and show your name and address.
Once you have applied then you will not have to wait long to find out if you can have a loan. This is because payday lenders have a lot of staff and they realise that many people need the money quickly and so they will process the applications quickly. They will then make you an offer of a loan and once you decide to take it, they will get you the money within hours in some cases.

Availability

There are also a lot of companies out there now offering payday loans. This means that you will be able to find a lender really easily. If you stroll down a typical high street you will find a store, but it is even easier to look on a search engine and you will be able to find plenty of lenders there. There are also comparison sites where you can choose between different lenders or you can even go to companies that will take your details and match you up with a lender. There are lots of options out there which means that you should find it easy enough to find a lender that you like. You may even find it difficult to know which one to go with because there are so many to choose from. This is a good thing though as it means that there is plenty of choice and you should be able to find one that suits your specific needs and at a reasonable cost.

Conclusion

Therefore even if you have concerns, such as applying for a loan or being turned down, you will probably find that a payday loan will suit you. They are easy to apply for and there are plenty of lenders out there, so you should find that it is simple to get one.