If you need money really quickly then you might consider using an online loan. These can be really quick to arrange and therefore they can be a great way to get money. However, you may wonder whether you will be accepted for the loan. It is worth thinking about this as you do not want to go through the hassle of applying to find that you will not be accepted for it. It is worth knowing though, that it tends to be easy to be accepted for a payday loan. There are usually just a few criteria that you have to meet:
- Age 18 or over – it is the law in the UK that money cannot be lent to under 18’s. This is because you become an adult at 18 and therefore you are considered to be able to repay a loan. Also, many people do not work before they are 18 or if they do it is only part-time and low paid. The minimum wage for under 18’s is very low as well, so they may not be capable of repaying the loan.
- UK resident – a lender will need proof that you are a UK resident. Anyone not should be looking to borrow money form the country that they live in. A bank needs proof of address as part of their identity checking and therefore will know whether you live in the UK.
- UK bank account – a bank account is necessary for two reasons. The loan is paid into the bank account and the repayment is taken from the account. The online lender will set up a direct debit to take the payment when it is due. With this sort of loan that normally happens on the day that you are paid.
- Source of income– It is necessary to have a source of income. The lender will want to make sure that you have money coming in so that you can repay the loan. It does not have to always be a salary though, it could be benefits or pension or any other type of income. They just want to make sure that you will have the money available to pay it when necessary,.
You may wonder whether there will be other criteria as well. Many banks want you to have a good credit score, for example. This is something that not everyone has. It is something that you get if you can show that you can make regular payments, such as rent or utilities and if you still live with parents, or do not have your name on any household bills, then you will find that you do not have any evidence that you can be trusted to make regular payments. This will mean that you will be considered to have a poor credit record even though you have never borrowed money. Those that have borrowed could fare better if they can show that they repay the loan on time. However, any missed payments could count against them. This is because a lender wants to see whether someone can be trusted to repay their loan on time and they will look to check. They may even prefer someone who has missed a few payments as they can make more money out of them because they can charge them more but they will avoid those that fail to repay or get into debt for a long time. Each lender will have a different criteria.
An online lender has a very different approach. They were set up to help those that have a poor credit record to be able to borrow money. This means that they do not judge based on credit record. Legally they have to do a credit check, but they do what might be known as a soft one. It will not leave a record on the credit report which is useful as other lenders can be influenced just by seeing that lenders have been there looking.
As credit rating is not taken into account it means that people are far more likely to be accepted for this type of loan. It can be a relief knowing that you will not have to worry about this when you apply for a loan and it is so likely that you will be accepted and therefore be able to get the money that you need.
So, as you can see, it is pretty easy to be accepted for an online loan. There are far less constraints compared with other types of borrowing. This means that the loan is easier to get and many people who will not be able to get loans form others will still be able to get this type of loan. This can be a great advantage and means that most people that want to borrow this way will be able to.