Short term loans are a broad category of financial services. There are many types of short term loans, both secured and unsecured. While the spectrum of short term loans is complex, payday loans are relatively simpler. They are a straightforward proposition. You seek to borrow a certain amount. There is a rate of interest and a short repayment period. Your income is the basis of approval. If you cannot provide any proof of income or if your income is insufficient for the loan amount you seek, then your application will be turned down. While income is the quintessential factor here, there are other elements that will determine your eligibility. Let us take a look at such criteria to have a lucid understanding of how payday loans work.
Basic Eligibility Criteria for Payday Loans
Most lenders of short term loans have laid out some ground rules pertaining to eligibility. If you are applying for payday loans through Payday Pug, then you must be a resident in the United Kingdom, you should be atleast eighteen years old, you should have a bank account, you must have a paying job or some source of income and you should have an address. It is needless to mention that the bank account and address should be valid. Your full name and the identification you provide should also be valid. Their authenticity would be verified. It is safe to say that if you cannot fulfill such basic criteria, then you would not get payday loans from any lender in the country. However, these are not the only criteria as lenders of short term loans may have some specific requisites.
Validity of Personal Information and Banking Details
There are some lenders that would not care about the authenticity of every piece of information you share. If you have disclosed a certain income, a lender may just accept it at face value. If you have mentioned that you are employed with a certain organization, there may not be any investigation into it. While some lenders are and will be lenient, many will want to have your details vetted. They would confirm everything, from your name and address to your employment status and income. Bank account is never an issue because if it is invalid, then you would not get the loan in the first place. All payday loans are now credited into bank accounts. No one deals in cash any more. There are no over the counter transactions, even if you are at the office of a lender of short term loans and apply for the loan offline.
Since some personal and financial details will get verified, you should be sure of their authenticity. You should not make clerical errors either. When you apply once and get access to multiple lenders through Payday Pug, you would have the luxury of receiving multiple offers but you would also be limited to the one off correspondence. Some lenders may find errors in some of your details and may not communicate the same to you. It is better to be proactive. You don’t want a lender to turn down your application simply because of an error.
Assess Eligibility by Lenders of Payday Loans
Some lenders will accept borrowers who have part-time jobs. Some lenders will only entertain those who have fulltime jobs. Some lenders will accept self employed professionals or business owners, provided they can furnish the proof of their income. You need to be aware of such eligibility criteria of specific lenders. This is not necessary if you are receiving multiple offers from lenders of short term loans through Payday Pug. However, if you think there are fewer offers and you expect more or you deserve more, then you should delve deeper and find out why some lenders are not interested in your application. Chances are your application is being deemed ineligible for some reason. You must know this reason so you can address it when you reapply.
Beyond the basic eligibility, there is a need to consider the specific qualifying factors for a chosen loan amount. No borrower gets approved simply because they are eligible. The loan amount, rate of interest, repayment term and other factors including purpose will come into play.