It is always a good idea to know what some of the requirements are for a payday loan before you start applying. Every time you submit an application for one of these loans, your credit will take at least a small hit. This is why it is important for you to understand what the requirements are before you get started. In this article we will help you to get a better sense as to whether or not you should bother applying so you can save yourself some time and effort.

Income

One of the most significant factors in determining your chances of approval for a payday loan is your income. When you go to fill out an application, the lender will require you to submit details on how much you make. You’ll also most likely be required to submit proof of your income. This can come in the form of tax records, pay stubs or something else entirely. The lender basically just needs to know that you make enough to cover your loan by the due date. The more money you make, the greater your borrowing potential will be.

Age

You are legally required to be over the age of 18 to obtain any sort of loan in the UK. The lender will require you to show proof of your age. You can use your driver’s license or passport. This will also serve as proof of legal UK citizenship, which is another basic requirement for getting a loan.

Employment History

While you don’t necessarily need to have a stable job history, it definitely helps. This is something else that most lenders look for before deciding whether or not to approve an applicant. If you have been at the same job for a while now, it will definitely work in your favour. If the lender sees that you have had lots of different jobs in the last few years, they might not approve your application.

Credit

Good credit is definitely not a requirement for a payday loan, but we still felt the need to mention it. Having a high credit score can certainly help you get a better deal on a payday loan, but it’s not needed with most lenders. Some private lenders that give out these loans run a credit check on applicants while others do not. This really all just comes down to the lender. You should make a point of finding out which lenders run credit checks and which do not.

It’s always a good idea to apply with lenders that don’t, as it can help you preserve your credit a little bit. A payday loan application counts as a hard inquiry, which puts a small negative mark on your credit.

The lender might also look at your credit history to see what it is like. If you have a bankruptcy or have defaulted on loans in the past, your application could get rejected. It is a misconception that credit doesn’t matter at all when trying to get a payday loan. That being said, your credit score is far from being the most important thing.

Checking Account

You must also have an open checking or savings account at a bank or credit union. It doesn’t matter if the bank is based online or not. The lender simply needs an account that they can transfer the funds into if you are approved.

While it might be technically possible to get a payday loan without one of these accounts, it is considerably more difficult. If you don’t already have a checking account, you should make a point of opening one. This will make it a lot easier to get your payday loan application approved.

Contact Information

When you are filling out your payday loan application, you             will have to submit your current phone number and address. You will not be able to get a loan without these two things. The lender has to have a way of getting in touch with you if you fall behind with payments. This is something that most people don’t have a problem with, but you still have to keep it in mind. Make sure that you submit up to date contact details on your application.

The requirements for getting a payday loan are significantly more lax and reasonable than most bank loans. This is the main reason why so many people in the UK are getting payday loans each year. The average person’s chances of getting approved are fairly good, but there is never any guarantee. You should always try to avoid lenders that guarantee approval, as they are most likely not completely legitimate. When you consider all of these things, you should be able to increase your chances of getting the loan you need for whatever expenses you may have.