Pay day loans – A Simple Guide
Pay day loans can offer households increased financial freedom through a quick and easy application process. To see if a payday loan is right for you, take a look at this simple guide.
Loan Criteria
All applicants must meet certain criteria to be considered eligible for a payday loan. These are typically very versatile and most applications will be approved.
Employment: Pay day loans are only available to people within paid employment, however this can either be part time or full time. Proof of your employment will be required when making your application, including your salary details. It doesn't always happen, but sometimes your last two payslips may be requested as proof by loan providers. If this is the case, the information can usually be scanned and emailed quickly.
Age: All applicants must be at least eighteen years old to receive a payday loan. Proof of identity will therefore usually be requested.
Credit Rating: Even applicants with a bad credit rating can still be considered eligible for a payday loan. Credit ratings will generally be checked during the application process but they will not be the only factor which is considered.
Other: Other criteria for eligibility means that applicants must be UK citizens and they must have an active UK bank account for the loan amount to be transferred into.
Application Process
The application process for a payday loan is very quick and simple, hence why they are often referred to as fast cash loans. It can be completed either in person or online. General steps involved in the application process are as follows:
Personal Details: The first things you will typically be asked to provide are your personal details. This will include your full name, date of birth and contact details.
Loan Request: You will then be asked to specify the amount of money you wish to borrow. This figure may then be altered depending on your salary information
Further Details: This will include the aforementioned salary and employment details. These will be used to calculate the maximum amount of loan you are offered and when your repayment date is.
Evidence: Evidence of the above details may sometimes be required. In online applications users will typically be requested to upload photocopies of documents as proof.
Repayment Details: The repayment details will be determined based on the salary information and evidence you provide the loan company with. Repayments are made via a debit card transaction so you will be asked to provide the company with your card details.
Approval: After you have completed the application form, which takes no longer that 5minutes on average, you will receive your decision almost instantaneously. Many pay day loans are labelled as 1 hour loans due to their quick decision times.
Transfer: If your loan is approved then the money will be transferred to your account immediately. You will also receive confirmation of your loan approval and the repayment schedule and amount.
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