If you’ve ever tried to apply for a payday loan, you will have no doubt noticed how simplified and stripped back the whole process is. You don’t get asked for your full employment history or living arrangements for the past five years. Instead you will just need to provide bank information, current working status and a few personal details.

The verification process is also very different from any other you may have previously encountered. Whilst a bank, mortgage company or other lender pore over every intricate details to ascertain whether or not you are a trustworthy borrower, payday loan companies are slightly more relaxed. This is particularly true when it comes to bank verification.

If you were to apply for a personal loan, it is standard practice for the lender to ask for copies of your bank statements from the past few months. As well as looking at specific transactions, they will also use this to verify your banking and personal details. This will be used in accordance with a strict credit check to provide a clear overview of you as a borrower and your suitability.

Many payday loan companies will use other methods in order to verify your details and to confirm that you bank account accepts automated payments. So rather than seeking statements, they will often ask you to provide your debit card details including CVC code and the usual safety information. This can then be used for the safe transferral of funds to and from the account, whilst also verifying that the account is yours.

This helps to save a great deal of time and inconvenience for the borrower. Surprisingly, it also doesn’t add a great deal of risk to the lender either.

Payday loan companies don’t need to dig into your history like most other lenders. The short-term nature of this form of borrowing means that there is no ongoing risk beyond the repayment date. As such, their primary concern is simply that you will have the funds available on the agreed date ready for them to collect. This is why your current employment features so prominently in their decision process.

You will be asked what you’re doing for work, who your employer is and how much you take home each month. This information can be quickly verified (without contacting your bosses) and will then act as a guarantee for your loan. As long as your bank account details are valid, you have a debit card and it can process payments, then you stand a good chance of gaining acceptance.

As such there will be some form of bank verification involved, but it will be completely unobtrusive and shouldn’t have a major impact on your application process. Only in very rare cases will you be asked to fax or email any personal banking details. This should also only happen when you first apply with a company, after which you should begin to build trust and speed up the process of borrowing even further.

All online payday loan companies and most high street lenders will require some form of bank account. This should be registered in the country that you’re applying in and will often need a debit card (for the reasons mentioned above). Applying without a bank account or any verification is unlikely, although some of the more specialist lenders may be able to assist in this area.

So whilst it may be possible, it is highly improbable – and not without good reason. Your bank account is pivotal in the whole process and therefore it needs to be verified, even if it is only an arbitrary check.

Vincent Rogers is a finance writer who writes for a number of finance businesses. For reliable payday loans, he recommends http://Paydaypower.co.uk

Vincent Rogers is a finance writer who writes for a number of finance businesses. For reliable payday loans, he recommends http://Paydaypower.co.uk

Author Bio: Vincent Rogers is a finance writer who writes for a number of finance businesses. For reliable payday loans, he recommends http://Paydaypower.co.uk

Category: Finances
Keywords: payday loans, same day loans, loans, UK, finacne