The Criteria for Obtaining a Payday Loan

Author : Jonathan Joyce | Published On : 25 Nov 2021

Payday Loan is one of the best and fastest ways to meet any sudden and pressing financial need. You can partner with various lenders across the UK who offer competitive loans to individuals in every situation.

When you want to borrow between £100 to £5000, lenders can provide you with the amount you need.

Learn about some rules before you apply so that your application is processed successfully:

1 - Minimum age to apply

The minimum age needed to apply for a payday loan is 18 for all UK lenders. At the age of 18, a person is likely to have a very limited credit history. Still, individuals applying between the ages of 24 and 35 may have some financial history, and this information should be included in their loan application. The outcome can be valuable when deciding.

2 - State of residence

As part of the criteria for all short-term lenders, applicants must be UK residents. The borrower does not need to be born in the UK but must reside here either permanently or for an extended period. Being a homeowner can be favoured. Other features like stable income and a good credit rating can maximize your chances of getting approved.

3 - A monthly income

You have to be employed full-time or part-time and earn a regular monthly income in the normal payday loan criteria. The minimum income requirement varies between providers, with the average short-term lender looking for around £500 per month. A regular income shows your access to funds to make regular monthly payments. The lender may request proof of income.

4 - No history of latest bankruptcy

Note that lenders will be cautious if you have recently declared bankruptcy, IVA or CCJ. It also shows that a payday loan may be high-cost and unsuitable for you if your financial history shows poor restructuring.

5 - Your credit status

Your credit score gives an important overview of how well you've paid off other similar types of credit, car payments, even credit cards, loans, utility bills, etc.

Plus, it gives the lenders an idea of ?how much remaining debt you have and if you haven't made any payments recently.

6- Mode of Application

As you know, a payday loan is an unsecured loan that can be availed in times of short term financial crisis. Such a loan can be secured both online and offline and it has to be repaid on the next payday. But applying for Payday Loans Online process is very quick.

Bottom Line

Many individuals prefer these loans as they do not require any collateral or guarantor. Contact a reliable firm to know more about Payday loans with bad credit.

Jonathan Joyce is the author of this article. To know more about Payday Loans With Bad Credit. Please visit our website: findmealoantoday.com