When applying for a payday loan there are things that must be taken into consideration before agreeing to take out any sort of finance. The payday loans industry is a very highly regulated industry which means that applicants need to go through a rigorous application process to ensure that they are eligible to be accepted for any sort of finance provided by a UK Lender.
Are you a UK Resident and aged 18 or over?
If you are applying for any type of loan, you must be a UK resident aged 18 or over. Applicants applying for any sort of financial aid from a UK lender will also need to have a full active UK bank account in which they are regularly paid into.
All applicants need to be aged 18 or over which is the legal age that an individual is required to be in order to apply for any sort of finance.
Do you have a valid UK address and Bank Account?
Any applicant will be required to have a valid UK Bank account and place of residence. Providing this information will enable any lender to transfer funds directly into your UK bank account. The UK Address information will be used to ensure that you are the person in control of the bank account.
Do you regularly receive an income?
All applicants need to prove that they are capable of paying back any money that has been borrowed. In order to pay back any borrowed funds, individuals must have a regular income in which they are able to cover the repayments on their payday loans. Many payday loan lenders can also provide loans for people on benefits and disability.
Eligibility and Credit Checks
All UK lenders will carry out a number of eligibility checks to assess an individuals affordability.
A lender will score your affordability based on all of the eligibility checks that they carry out, as well as performing a credit check on the individual that is applying. This will help the lender to understand the borrowing history and any outstanding debt that the individual may still have which could potentially affect their ability to repay a loan in full.
It is a UK legal requirement that all lenders need to carry out a credit check in order to adhere to a number of responsible lending guidelines which protects consumers from taking out loans that they can not afford to repay in fall.
Ensuring that you meet the eligibility checks set by many of the UK’s leading lenders you should ensure that you have the funds necessary to pay back any borrowed finance. Failure to cover monthly repayments can potentially have a negative effect on your credit rating which could prevent banks and other lenders providing you with any additional finance in the future.
Many lenders offer same day payday loans so take your time and review your options before committing to taking out any sort of finance or loan.