Who can apply for Payday Loans online?
There are some very simple rules when it comes to who is eligible for most cheap payday loans. In fact, the majority of workers in the UK are likely to be successful if they apply. All applicants for payday loans have to be 18 or older to be granted a loan; they also need to be permanent residents in the UK with permanent jobs. It is not always necessary to have a full-time job but some companies do specify that as a stipulation.
Businesses who supply people with pay day loans online usually require that their customers are paid on a monthly basis. This is so that they can collect the repayment and the interest on the loan amount out of the borrowers account on pay day. Some lenders also require potential customers to be earning over a certain pay threshold. In many cases this is as little as £750 a month. So provided you are 18 or older, a permanent UK resident with a permanent job and getting paid £750 or more a month you are technically eligible for a payday loan.
Myths About Credit Ratings
Companies who provide pay day loans online might say on their websites that they do not care if applicants have a bad credit rating and in many cases it is true that payday loan companies do not discriminate against customers based solely on their credit reports.
However, in order to process loan applications quickly, most lenders who provide payday loans fast online do actually check credit reports to confirm the identities of new customers when they are processing applications. By looking at the credit record for a customer instead of waiting for faxed copies of identity documents, they can approve payday loans fast more rapidly and get the money into a customer's bank account within hours of them applying for a loan.
The likelihood of someone being accepted for a loan by a payday loan company is high because they do not always turn down people with bad credit ratings. The reason that they are more tolerant of those of us with less than perfect credit reports is because as long as they know they will be paid back on payday, which is usually just a few weeks from the date on which the loan is taken out, they do not care about a customer's track record.
Payday loan companies also require customers to pay a higher rate of interest on the loan they take out than a traditional lender would ask for, which reflects the increased risk of allowing customers with less than perfect credit ratings to borrow from them. The higher rate of interest that most payday loan companies charge is controversial and has led to criticism of this form of lending, however, due to the riskier customer base and the extremely short loan period when compared to traditional loans, many financial experts argue that it is entirely necessary and justified.
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