Online Calculator | Eligibility To Get Payday Loans

Eligibility To Get Payday Loans

If you have had some debt related issues in the past then you may think that any application you made for payday loans would be rejected.  

The reality though, is that many people with previous debt issues may be, in fact, still eligible for these fast cash or payday loans.

This is typically because payday advance loans are diverse from traditional lending in a few important respects:

  • the amount you borrow is typicaly smaller, on average £100 to £250;

 

  • the time-span of a payday loan tends to be short and measured in days or just a few weeks rather than years;

 

  • a payday loan is repaid in one instalment, which includes interest and charges.

This lowers the risks that the lender may face, so they in turn may be prepared to lend to people whose credit profile would typically prevent them from being considered for more mainstream lending where the risks were greater.

Typically a credit check is involved but at a lower level than if you were applying for a larger loan but there is no guarantee that your application will be succesful.

So, what do you need to be successful in your application for payday loans?

For a start, you may typically need to be working in a job that gives you a regular income and which has predictable day dates.   This will allow the repayment date to be scheduled to coincide with your payday.

Generally you have to own a bank account along with a debit card.  There are two reasons for this:

  • the first is that it would allow the loan to be paid directly into your bank account – sometimes in as little as two hours after your application has been approved;

 

  • the debit card allows the lender to be repaid automatically on your payday by means of a debit card transaction applied to your account.

The final point to note is that the amount you are trying to borrow should represent a feasible figure against your income, given that you have to repay it in one go on your chosen pay date.   

Once you have paid back the loan you are of course able to apply for another loan at any time.  

The first time you use a payday loan service, you may find that the amount you are offered is less than the amount you originally applied for. Once you have built up a relationship with the lender. if you apply again you may find you are able to borrow a higher sum.. Nonetheless, very regular, repeat borrowing this way is not encouraged by responsible lenders, as this may be indicative of a debt problem.

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