subject: Who is Eligible for an Online Payday Loan? [print this page] Who is Eligible for an Online Payday Loan?
Eligibility for a payday loan is determined by a number of factors. These will often deviate between the various lenders, although some universal requirements include having a bank account, being employed (with the salary paid to your account) and aged over 18 years old.
These short-term borrowing solutions are far more accessible than standard loans. Often you'll be able to get a near instant decision based on the details provided and have access to the money within 24 hours. The ease with which a payday loan can be secured has subsequently led to a huge upsurge in the number of applicants.
Not everybody is eligible though. Whilst the credit checks performed (if indeed credit checks are used at all) are far less strict than a more traditional loan, there are parameters set out by lenders to prevent those who can't afford repayments getting into further issues.
So to be eligible for a payday loan you will need:
To be over 18
Payday loan providers will require that you are at least 18 years old. This is to ensure that you are legally an adult and therefore are able to gain credit. The same restrictions cover all forms of credit applications and payday loans are certainly no different.
To have a valid bank account
The bank account will need to be registered to the applicant's name, include a debit card (or similar) and be based in the country you reside in.
To have a regular salary paid into your bank account
The point of a payday loan is that you repay it in full - including all interest and any other associated charges - when you are next paid. Therefore it is imperative that you will have the funds at your disposal to pay it all back within 30 days. If you are unable to provide proof of regular payments, you may not be eligible.
Some payday loan providers will also stipulate that you earn a certain amount each month (although most won't actively advertise this). So if you are only a part-time worker on a low wage there's a chance that you won't be eligible. This is simply to prevent companies lending to people who can't afford the repayments.
Whilst the above factors represent the basic requirements, lenders will have their own unique way of determining whether or not your loan application will be successful or not.
Many will run credit checks to assess your current financial status. Whilst these aren't as strict as other loans, if you have a very poor status you might well find that your application is rejected.
As mentioned earlier, many lenders will ask what your annual or monthly salary is. This will be used as a method of determining whether or not you will have the money available on your next payday to cover the loan amount.
So if you are taking home below 750 each month for example, you might find that some lenders will reject your application immediately. This will simply be a part of the algorithm used to calculate applications and if you don't meet the requirements of that particular lender, you may find that accessing a payday loan could be challenging - although other providers may be able to help.
For anybody that is in need of quick financial assistance, a payday loan is still a great solution. It isn't right for everybody and the high interest rates mean that they shouldn't be used as a long-term debt solution. However, if you are in need of cash quickly and don't have the finances available, they can be an effective method of spreading costs and preventing a bad situation getting worse.
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