You may worry that it is not worth you applying for a payday loan because you will just not be approved for one. There are usually strict criteria set by lenders which means that some people will not fit in and therefore will not be able to borrow money. It is important to remember that a payday loan is different to a traditional loan and therefore has different rules. This means that if you want a loan and are considering a payday loan, then do not dismiss it just because you think that you will not get approval. It is better to approach them and look at their rules first to see whether you are likely to be approved.

There are a number of factors that payday lenders will consider but they are still not that restrictive:

Age

A payday lender will only lend to someone over the age of 18. This is because the law does not allow lending to anyone younger. It also makes sense that they want to wait until the borrower is an adult so that they fully understand the responsibility that they have taken on and are more likely to have the money to be able to repay it. Most people are living with parents at least until they are this age anyway and so will be unlikely to need a loan like this as they will be unlikely to have emergencies that they need to pay for.

Proof of identity and address

In order to get any sort of financial product you will have to prove who you are. This is to protect the lender against fraud. They will want official documents that prove you live at your address such as bank statements or bills. They may also check the electoral roll and see whether you appear on any phone enquiries lists. If you apply in person you may be asked for photo ID such as a passport or driving licence. It is worth asking the lender what they need and what is acceptable. With most people doing banking online and opting for paperless billing, there is less likelihood of having paperwork like this and therefore there will be alternative options available. You will need to provide something though so think about what you may have that will be acceptable.

Proof of income

You will normally have to show that you have an income. This is for two reasons. A payday loan normally will expect you make a repayment on the day that you get paid. Therefore showing a payslip or bank statement will allow them to check when this day is. They will also be able to see that you get a regular income and therefore are able to repay the loan.

This is not the same as a credit check, which will look at much more than income, such as what debts you currently have, what your history of debt repayment is and how reliable you are at paying your bills and rent. They will not normally worry about where the income comes from either. This means that you do not need a permanent job or even for the income to come from work. It could come from benefits, pension, returns on an investment or things like this. There are lots of different places where you can get an income from. They will want it to be something regular so that you can guarantee that there will be an income payment arriving on the day that the loan is due to be repaid and then you will be able to show that you will have the money available to repay it.

Bank account

Most people have a bank account and it is necessary to have one for most types of loan. A payday lender will want you to have a bank account so that they can set up a direct debit to go from it to repay the loan. They will set this up for you so that the payment goes out on the day that you get paid so that you will have the money available to repay it. Normally this will be a lump sum repayment for both the amount that you borrowed and the interest but there are some payday lenders that will allow you to repay over several months to make it easier for you. It is up to you to find a lender that offers more flexible repayments if this is something that you think that you will need.

These are very simple criteria that you need to fit. So you need to be over 18, live in UK and be able to prove it and your identity and have a bank account. Most people are able to do this and therefore would be able to apply for a payday loan. Although lenders do make their own rules and some may have other constraints, this is unlikely. The whole idea of payday loans is to provide emergency loans to those who cannot borrow elsewhere and so they would not want to make it too difficult to borrow by having too many constraints. They do have to make sure that they get the money repaid though, which is why they do have some checks to do. However, with just a few things to check, it does mean that the application process is quick and easy and the loans can be approved really quickly. This allows them to be able to provide the required loan within a few hours of applying in some cases, so if you have a financial emergency and need money really quickly, it means that you will be able to have some options for getting some money quickly. You will not have to spend a long time looking for information either, you should be able to get hold of a few documents and then you will be able to apply. It should all be straight forward and simple so nothing to worry about.

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