Sometimes people need money in a pinch and aren’t sure where to get it. Many types of loans require long periods of waiting because many banks or other lending institutions traditionally function this way. We can’t always wait this long.
Fortunately, there are certain types of loans that don’t require such long waiting periods. Payday loans are specifically designed for people who have immediate needs and have to find a quick way to take care of them. This article will provide you with tips about how to get approved for a payday loan.
Minimum Payday Loan Lending Criteria in the UK
If you want to get a payday loan, there are minimal criteria that you first need to meet. According to the FCA, 5.4 million payday loans are issued every year in the UK. Clearly, this type of loan is a very popular way of receiving money quickly and with relatively little hassle. We will first take a look at the minimum criteria for eligibility. Afterward, we will discuss more detailed measures that you can take to make yourself a better candidate.
In order to be considered for a payday loan in the UK, you need to meet certain minimal criteria. These include the following:
- You must be 18 years old, have a bank account in the UK, and be a UK citizen.
- You must be employed, at least part-time, and receive a regular income of at least 800 pounds net per month.
- You should have no criminal history or history of bankruptcy.
- You should have a good credit history.
How to Get Accepted for a Payday Loan
The above-mentioned criteria are the minimum that you need to meet to be accepted for a loan. If you do not meet these criteria, you should go back and work on them before you go any further. If you do, there are other things that you can do that will also improve your chances of getting a £500 or even £1,000-payday loan.
Read the Application Carefully
This might sound like a no-brainer, but you might be surprised at the number of people who fill out applications in haste and end up leaving something important out. The top reason that people are rejected is because lenders have doubts about applicants’ ability to pay back a loan. If you don’t take the time to look through questions carefully and respond to them accurately, this tells potential lenders that you are sloppy with procedures in general. And if you miss an important question, you can be refused.
Look around for an Appropriate Lender
Different lenders have different criteria, both for loan provision in general and in terms of payback requirements. Think about what you will realistically be able to pay back on a regular basis, and look for a lender that allows for those terms. If you choose the wrong one, you will either be putting yourself in a position to pay back more than you can afford, or to get rejected altogether.
Borrow as Much as You Need and No More
You might think that getting a loan could be a good way to pay off your debts, and also pad up your accounts for a while, as well. Be wary of this idea, though. First of all, it is difficult to get approved for loans of higher amounts. Also, remember that interest adds up and the amount that you will have to repay will ultimately be greater than the amount you take out. Think carefully about the amount that you really need, and only ask for that much.
Make Any Necessary Adjustments Before Applying
If you are not accepted for a loan – or, if you have not yet applied and fear that you might not be accepted – make whatever adjustments you need to in order to make yourself a better candidate. For example, if you have a low credit score, pay off your debts before you apply.
Tell the Truth
Another thing to keep in mind is that you should be fully honest when filling out your application. Do not inflate the amount of money you have or try to hide a bad credit score because you think it will give you a better chance at receiving a loan. Lenders have ways of officially checking this information and it will more likely hurt your chances of being approved, rather than help them. It would be smarter to make a legitimately better case for yourself before you apply, rather than trying to hide any problems that you might have in the application process.
Accept the Loan as Soon as Possible
Once you are accepted for your loan, you should respond to the lender right away. Loans can be retracted, of course, so you should secure an offer as soon as possible. If you are approved for more than one loan, you can choose the most appropriate one, but don’t take too long or you could risk losing your chance altogether.
Summing up
Payday loans are a popular way to get money on the spot when you really need it. If you go about the application process carefully and make sure you meet all the necessary criteria, you should have a good chance of being approved. Remember to study both the application requirements, as well as the payback terms carefully before you get started.
