Who is Eligible for a Payday Loan?

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.

Minimum Age

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 The money is withdrawn from your account on the due date, which is another reason for this particular requirement.

Income

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.

Citizenship

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.

The Payday Loan Application Process

While the payday loan application process might seem fairly straightforward, there are a number of things that you will need to keep in mind. If you want to get the loan you need as quickly as possible, it is crucial that you learn as much as possible about applying. These loans are known for their ability to help people in dire financial straits, and it could do the same for you. The more you learn about these loans, the easier it will be to benefit from one.

What Should I do Before Applying?

Before you go ahead and apply for a payday loan, there are a few different things to consider.

  • Find a Lender: You must first find a lender that you can trust, and there are many of them out there. Use the internet to your advantage when you are doing this research. It can really help you with getting useful information on each lender you come across.
  • Look at your finances: You also have to take a close look at your personal finances before applying for a loan. Are you really in a position to borrow money? If you have any existing debts, it might be a good idea to hold off on filling out an application for a new loan.
  • Figure out how much you need: The amount of money that you borrow is important, so you have to determine how much you need. You shouldn’t simply estimate, as you could end up borrowing more than you truly require. By doing this you will help save yourself money.
  • Know the requirements: There are some basic requirements you need to meet to get a payday loan, including being over 18 years old, a legal UK resident, an active checking account, and adequate income. Certain lenders may have other specific requirements that you need to satisfy. Reading these requirements before applying can save you some time and frustration.

Filling Out the Application

Paper applications are quickly becoming a thing of the past when it comes to payday loans. These days a majority of people are applying for these loans online. It is simply a much more convenient and fast way to borrow money. You might be able to locate a payday loan business in your area, but it’s more trouble than it’s worth.

When you go about filling out an online payday loan application, you’ll notice that everything will be laid out in a very simple and straightforward manner. You will be told exactly which details you need to submit. You’ll be asked to provide some basic personal information like your name and date of birth, as well as financial details pertaining to your job and income.

After the Application

Once you have officially submitted your payday loan application, all that is left to do is wait for a reply from the lender. Payday loan lenders have a reputation for replying to applications very quickly. You can expect to hear back about the status of your application within a few hours or so.

If your application is approved, you will receive a digital contract that you will need to put your electronic signature on. This simply involves typing out your name on the space that is provided. Take some time to look over the document before making it legally binding with your signature. You should know every single detail of the loan contract.

Getting Your Money

Once all of the loan has been finalized and all of the digital paperwork has been taken care of, you will get your money. It should take less than 24 hours for you to receive the funds in your checking account. You can use the money any way you want, and there are no requirements pertaining to this.

Increasing Your Chances of Approval

If you want to boost your chances of getting your application approved, there are a few things you can do. Always make certain that the details you include in your application are 100% accurate and truthful. You also need to find a lender that is flexible with a good reputation for helping out their borrowers. This will significantly raise your odds of getting the money you need.

Some people get really worked up about filling out a loan application, but it’s really not that bad. Most private payday loan lenders make it as easy as possible for potential borrowers to get through this process as quickly as possible. Just make sure that you take your time and give the lender accurate details. You will most likely get a response from the lender the same day that you fill out your application. Payday loans can be of great help to  many different people, but especially those who need money for something very important immediately.