When considering payday loans for the first time, people are often curious about the types of requirements that are involved. In many cases, a person has only had experience with applying for traditional bank loans.
As a result, he might assume that he needs to have impeccable credit or some sort of collateral. However, that isn’t the case at all.
With payday loans, no credit check is required or performed. There is no need to provide collateral of any kind either. In fact, qualifying for a payday loan is remarkably easy.
As long as a person has verifiable income, is a resident of the UK, is at least 18 years of age and has a bank account, he shouldn’t have any trouble obtaining this type of loan. Specific information about payday loan requirements is featured below.
Canadian Residents Only
To receive a payday loan in Canada, a person has to be a resident of the Great White North. Most people can prove that they are residents quite easily, and online providers can verify such information without too much trouble.
Payday loans are offered in many other countries, but people need to be residents of the right countries in order to qualify. Someone who lives in Canada needs to apply for a payday loan from a Canada-based provider.
The good news is that there are plenty of options. Many online providers are based in Canada. This requirement is an easy one for most people to fulfill.
Ages 18 and Over
For legal reasons, a person has to be at least 18 years of age (age of majority) in order to qualify for a payday loan. Most people who are under age 18 can ask their parents for small loans, so they don’t usually need payday loans anyway. As with the residency requirement, the age requirement is easy to prove.
Few people have any trouble verifying their age with online payday loan providers. People who aren’t over the age of 18 should not even try to apply for these types of loans. It is easy for providers to figure out when a person is not old enough.
No Credit Checks
With payday loans, no credit checks are required. People often assume that their credit file will be closely examined, but that isn’t true at all.
It does not matter to a payday loan provider whether an applicant has excellent credit or not. The money is going to be repaid through a withdrawal from the person’s bank account.
Therefore, there is little to no risk to the lender. This system works very well, and there are generally no problems at all. People with less-than-perfect credit can easily get the cash that they need.
Read this if you want to learn more about credit checks
As easy as payday loans are to obtain, they do have a few basic requirements. Some type of regular, verifiable income is required. The income does not necessarily have to come from an employer.
However, it has to be consistent, and it needs to arrive in a person’s bank account on a specific schedule. If this information cannot be verified, a payday loan provider may deny an applicant’s request.
It is very rare for this to happen. Most people who apply for these loans can easily prove that they receive regular income.
A Valid Bank Account
Finally, a valid bank account is needed in order to qualify for a payday loan. It needs to be the same bank account into which a person’s income is deposited.
It is the account into which the loan will be deposited when a person is approved. It is also the account from which the repayment will be withdrawn on the person’s next payday.
Without a valid bank account, a person will not be able to obtain a payday loan. Of course, the majority of working people have bank accounts, so this generally isn’t an issue. When compared to traditional loans, payday loans are a lot easier to get.