Payday loans: who is eligible for financial help?

Friday, 28 September 2012 01:52

Payday loans: who is eligible for financial help?

Payday loans: who is eligible for financial help?

If you're considering the possibility of applying for a payday loan, it is a good idea to find out whether your registration would be accepted. There are many criteria you have to fulfil, so make sure you can tick these off before submitting your application.

Here are some of the requirements for taking out a text loan.

• Prove you can pay it back

It is important that you can prove you'll be in a position to pay back the funds by the end of the loan term, for example, within 15 days. Therefore, many loan providers stipulate certain things that enable them to have confidence you'll be able to repay them without landing into financial trouble.

The first of these is having a regular income. You need to show you have a permanent position, which will enable you to pay back the loan when payday comes around. Without this, your financial services provider will get suspicious of your ability to find the cash to pay the loan back.

You can prove that you receive your wages regularly by showing bank account statements to your lender. For many loan providers, having a bank account in the UK and being the owner of an active debit card are important conditions, so you'll be able to fulfil a number of requirements at once by revealing your statements.

Most adults have accounts to keep their money safe, and as you have to be 18 years old to be eligible for a text loan, it is likely the majority of people will be able to meet these stipulations.

As being accepted for a payday loan is easier than a bank loan or other forms of finance, there are several typical requirements you don't have to fulfil. Here are just a couple.

• Don't need a good credit history

Unlike many other financial services providers, text loan companies don't require that you have a good credit rating. Credit checks are favoured by banks as they show whether you are likely to have problems paying back your loan.

They reveal if you've ever failed to pay back loans, credit card bills, rent or finance schemes in the past – and if you have, you are likely to have a low rating. 

However, payday loan firms don't necessarily make their decision over your application based entirely on these scores. Instead, they look at the individuals applying and judge whether you'd be able to repay your loan from this.

• Don't need to own property

Another thing you don't need to be if you're applying for a payday loan is a homeowner. For a lot of lenders, this is an important stipulation as they can use your home as security if you fail to pay back any loans. If you knew your house or flat was under threat by not being able to repay the funds, you may be more likely to pay it back more quickly.

Text loan providers, however, do not have such a condition, and both homeowners and renters are eligible to submit their registration for a payday loan.

Therefore, it is clear that while there are some requirements you need to fulfil to be able to have a successful and quick loan assessment, there are many other conditions you don't have to meet. This is why many people opt for payday loans, as it is far easier to get your hands on the funds you need this way.



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