It is crucial to remember that if you want to apply for a payday loan, the payday loan companies will first verify your eligibility through several different procedures. Depending on how the checks come back, you could be able to get your money.
Generally, a payday loan lender will require an established bank account, a valid form of identification, and a source of income to qualify for a payday loan. Before obtaining a payday loan, borrowers must also be minimum of 18 years old.
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What are the Eligibility criteria for Payday Loans?
Although each lender will have different requirements, you should meet the following requirements to be able to apply for a payday loan:
- Age:
The minimum age requirement to qualify for a payday loan in the UK is 18 years old. During the application process, you will be asked about your age, and it will be confirmed once credit checks are done on you.
- Residence:
All candidates must be UK citizens to meet the requirements for short-term lenders. The borrower need not be a British citizen, but they must reside permanently here or for a long. Further, your assets and properties can also play a huge role in getting payday loans. Staying with family or renting an apartment may be less advantageous, but if you have other qualities like a steady salary and a strong credit rating, you can increase your chances of being accepted.
- Your Monthly income:
You must have a monthly income or be working (full- or part-time) to meet the requirements for payday loans. Although each provider has different minimum income criteria, the typical payday loan lender seeks about £500 per month. To verify your occupation and/or income level, the lender may ask for proof of income in the form of a pay stub or bank statement. You are not likely to be eligible for a payday loan if you are jobless or receiving benefits.
- Valid phone number and email:
You must have a working email address and UK mobile phone account to apply for a payday loan product. This allows lenders to contact you via both of these channels if your loan is unpaid or past due.
- Your credit status:
Your credit score provides a crucial review of how successfully you have previously repaid other comparable forms of credit, such as credit cards, loans, auto loans, utility bills, and more. Additionally, it informs creditors of your current debt balance and any recent payment defaults. Lenders always give preference to borrowers with strong or acceptable credit scores. If your credit is poor, you might want to look into other options like guarantor loans or borrowing from relatives and friends.
The general requirements serve as a crucial foundation for determining your potential eligibility for a payday loan. This implies that you might not be qualified and might be better off looking for alternative goods or getting financial assistance from an expert or charity if you are unemployed, receiving benefits, or have recently filed for bankruptcy.
