When applying for payday loans you can expect to have to complete a number of key stages before the potential lender will make their decision as to the outcome of the application. Payday loans are classified as short term and high cost credit commitments and as such the type of product being offered is specific. Payday loans allow us the ability, should our application be successful, to borrow a small sum of money over an agreed ‘short’ period of repayment. This means the loans typically range in value from £50.00 up to £500.00 depending on the chosen lender.
The terms of repayment are designed to work with these sorts of amounts whilst being flexible and as such usually allow customers the ability to repay over a number of months as needed. This is likely to range from a few months, say 2 monthly repayments, right through to 12 months; depending on the amount being borrowed. In order for the product to be correctly placed the application process is in the vast majority of cases completed via the means of an online based application form. The application form can usually be accessed from any form of internet enabled device, such as your Smart Phone and most lenders allow applications to be completed 24 hours a day and 7 days a week.
The application process which needs to be completed by applicants is designed to be simple and easy to follow; given the fact they are fully completed online. Usually the application will be broken down into three fundamental stages when applying for payday loans. The first stage will gather all of your basic personal information such as your name, date of birth, home address and contact details. This information will later be electronically verified by the potential lender before the application can be considered to be progressed any further. The second section will then usually capture your banking and employment information, including account details, debit card information and employment contact details. The lender will almost certainly look to validate the debit card to be active as part of the application process and therefore this information must be gained during the completion of the application form. There will also be steps taken by the lender, usually manually once the application has been completed, to ensure the employment information supplied is correct and accurate before they can consider finalising the loan.
The final stage to be completed before the application can be submitted to the potential lender will be based upon your monthly expenses. Payday loans are now heavily focused on the principle of ‘affordability’ and as such the lender will want to take active steps to ensure the loan being requested is affordable. One of the ways in which this is achieved is through the information which is supplied in terms of your monthly budget. Often payday loans lenders will not take this information at ‘face value’ and instead will use it alongside other information gathered from credit reference agencies to ensure the loan is a suitable and affordable choice.