The fact is that not everyone who applies for a payday loan is eligible, as there are certain requirements that must be met. It is crucial for you to learn about these requirements before applying. Those who get this information will be able to save themselves quite a bit of time and effort. A payday loan can do wonders to improve a person’s financial situation when they are in a bad way. It is a borrowing option that can work for many different people.
You must be over the age of 18 to qualify for a payday loan. You will be required to submit proof of this in the form of a photo ID.
Active Bank Account
You are also required to have an active checking or savings account at a bank or credit union that your funds can be transferred into if you get approved. The money is withdrawn from your account on the due date, which is another reason for this particular requirement.
There are also strict income requirements for payday loans that you must satisfy as well. Lenders look for applicants who are likely to pay back the money they borrow on time. You will need to be able to take care of your debt with your next paycheque. Most of these loans have a term of 2 weeks, which is why income is so crucial. When you fill out your initial application, you will be required to submit proof of how much money you make.
Unfortunately, those who are not legal UK residents will not be able to obtain a payday loan via the likes of Emu.co.uk. You must be an official citizen to qualify for a loan of any kind here. Those who are visiting on holiday or for business will not be able to obtain one.
What About Credit?
A good credit score is most definitely not a requirement for obtaining a payday loan. In fact, people with low credit scores are given these loans all the time in the UK. Many private lenders who give out these loans don’t even run a credit check on those who apply. If the lender does run a credit check on you, they will focus more on your history than your score. They look for things like unpaid debts and bankruptcies to determine if you are liability. That being said, a high credit score can definitely work in your favour when it comes to getting a low interest rate.
Individual Lender Requirements
When you are researching different payday lenders online, you will undoubtedly find that some of them have certain requirements of their own. You will want to find out what these requirements are before applying. This can potentially help you save quite a bit of time. Some lenders have stricter requirements than others, but most are fairly laid back. You shouldn’t have to meet any ridiculous criteria to get your loan.
Organizing Your Documents
Before you start filling out applications for payday loans, you should get all of the necessary documents together. This will help you move swiftly through the process with minimal issues. Staying organized is crucial when you want to get a loan as quickly as possible. This means gathering your proof of employment, income, and other things you need. The website that you apply on will likely provide you with detailed information on which documents are required.
Filling Out Too Many Applications
Even those who think they may qualify for a payday loan should not fill out too many applications at once. It is important to restrain yourself so that your credit doesn’t take any unnecessary hits. Each of the applications that you fill out will count as a hard credit inquiry, which can lower your score a little bit. Submitting just one or two applications shouldn’t do that much damage, but you don’t want to get carried away.
I got Approved for a Loan. Now What?
If your application for a payday loan gets approved, the lender will send you a written offer, probably via email. You must take the time to read it over carefully before signing. It will most likely be an electronic signature, which simply requires you to type out your name at the bottom of the document. You should never sign any document, digital or otherwise, until you have read every word very carefully.
Qualifying for a payday loan is not all that difficult for the average person. These days a lot of people are starting to move away from traditional bank loans in favour of these. Payday loans can be very easy to get, even for people with bad credit. As long as you make a point of learning what the requirements are, you should be fine. This is an excellent way to get money quickly and conveniently.