Eligibility for a payday loan is often far more relaxed than many other lending solutions. Designed as a quick solution to money problems, these loans are often limited in terms of the borrowing period and the amount. However, how can you find out if you are eligible?

Often the only real solution is by applying for them. Many companies will have their own lending rules; however, in the most part, if you are a UK resident (or a resident of whichever country you are applying in) and are over 18, you should fulfil the minimum requirements. A bank account, debit card and regular salary (being paid into the aforementioned bank account) might also be required.

There are certainly factors that will work in your favour though. The most important of these is your credit rating.

Whilst payday loans are often given to people with lower credit ratings than most traditional lending options, it still has to be of a reasonable level. So if you have missed a number of payments in the last six years, have CCJs or have anything else in your record that might affect your credit score, this could become a factor.

Owning a home certainly isn’t a pre-requisite for obtaining a pay day loan. Again, it might help you to secure the financing your need, but it shouldn’t be an absolute requirement. If you are renting or living with parents, you may still be considered.

Employment is usually something that providers look for. This just ensures that you have the financial well-being to be able to pay off the loan amount when you get paid. If you aren’t currently in full-time employment this will almost certainly affect your eligibility. Often if you are paid weekly they will be able to provide you with a solution, based around a payment within 4 weeks. The self-employed may be subject to exclusions though.

Remember that these loans are specifically designed for people who are facing unexpected debts or have to cover payments quickly, so they aren’t just designed for those with an impeccable financial record. Your eligibility for a pay day loan won’t be negatively impacted unless you have a very poor rating or are unable to meet the basic requirements set out by each individual lender.

Here is a list of a few possible things that may well make you ineligible for a loan:

Self-employed
No full-time employment
No bank account
No debit card or chequebook
Poor credit
Under the age of 18 (ages may vary)

Only if you are unable to meet these very basic criteria might you not be considered for a pay day loan. Other factors like residency may also be used to determine your eligibility. For example if you have lived in another country within the last three years or have moved a number of times, that can adversely impact your chances.

So if you are considering applying for a pay day loan, make sure you read the terms of your provider first. Whilst those factors mentioned above might be reasonably universal, some companies will have their own terms and conditions. If you meet these requirements, then you should be free to go ahead and make your application and hopefully succeed in securing your finances.

Author Bio: Vincent Rogers is a freelance writer who writes for a number of UK businesses. For payday loans, he recommends Earlypayday.co.uk

Category: Finances
Keywords: Payday Loans,Pay Day Loans,Short-Term Loans,Loans,Loan Advice,Payday Loan Eligibility