Payday loans are an incredibly popular form of untraditional credit in the United Kingdom, and are a great way of accessing funds in between your regularly wages and payments. They’re an incredibly quick way of borrowing money, too, allowing you access to funds without complicated application forms or checks. But like with everything, there are a number of restrictions meaning that only certain types of individual will be able to access this kind of credit.
In truth, most people can get a payday loan, but there are a number of things you should ensure are in place before applying for the loan. First of all, you must have a valid bank account. It sounds obvious, but many people will attempt to get this kind of credit without a current bank account in which money can be deposited and easily withdrawn. If you do not have a bank account that is easily accessible, in terms of transferring funds, then you will not be eligible for this kind of credit.
Equally, those under the age of 18 will not be able to obtain a payday loan. This is not a matter of individual policy for companies, but instead a matter of British law. Anybody under the age of 18 is not allowed to enter into a credit contract, and hence those under this age will not be eligible for a payday loan either.
You will also not be eligible to obtain a payday loan if you do not have a reliable and regular source of income. This can be through wages, salary or benefits – so as long as every month, or even more regularly than that, an amount of money will be deposited into your bank account ready for the payday loan lender to obtain through direct debit at the agreed date of repayment.
Finally, you will not be eligible if you are not currently a citizen of the United Kingdom. Whilst this is the very least you would expect, it’s worth noting that if you are only in the UK temporarily and are not legally a citizen, you will not be able to obtain this kind of credit.
Payday loans are really great – they can help you with buying birthday and Christmas gifts, deal with unexpected payments and help you pay off unexpected bills. To ensure you won’t be disappointed, firstly ensure that you are completely eligible to obtain this kind of credit.