Many lenders offering payday loans have to follow the same eligibility checks that were previously introduced by the FCA in early 2015. Due to the very strictly regulated payday loan industry, all potential lenders have to carry out a number of eligibility check on any applicant to ensure that the individual can repay any borrowed finance without getting into any financial difficulty in doing so.
Eligibility checks take into consideration a number of things from age, employment history, salary and even monthly bills. Although most of the questions that various lenders need to ask are not decisive there are a few that are and can potentially prevent you from being accepted for any sort of finance. (listed below)
Are you a UK resident and over the age of 18?
Any individual applying for any sort of finance is required to be a Full UK resident with a UK address. These checks will enable banks and many lenders to ensure that you are not using someone else’s bank account information and can help protect individuals from potential fraudulent activities. Applicants are required to be over the age of 18 which is the legal minimum age requirement in the UK for an individual to apply for any form of finance.
Do you receive a regular income?
All applicants will need to be receiving a regular form of income in order to repay any borrowed funds without the potential of falling into financial difficulty whilst trying to do so. As well as protecting the Lender this eligibility check was also enforced to protect the individual to ensure that they could not take out finance if they were unable to repay the full amount plus interest which can potential damage an individuals credit score.
Many lenders offer same day payday loans so take your time and review your various options before committing to borrowing any form of finance.