Your Guide to Being Approved for a Payday Loan

You’re never guaranteed to be approved for any loan.

No matter what you may have read online, there’s always a chance that your loan provider might knock you back. That’s why, whether you’re applying for a personal loan or a payday loan, you always need to make sure that you’re doing your best to improve your chances of success.

While you may not be able to make sure that you’ll get every loan you apply for successfully, you can take a few steps that might put you in a better light with your lenders.

Here’s what you need to do to apply successfully for a payday loan.

Know the Requirements or Criteria

Most people turn to payday loans in times of crisis because they don’t have as many requirements that would otherwise restrict you from borrowing money. However, just because payday loans are more accessible than their counterparts, doesn’t mean there are no rules to follow.

Start by searching for a payday loan provider you feel that you can trust. You can find these companies by shopping around online. Remember, every loan provider will have different requirements when it comes to things like credit rating, or how much you might be able to borrow short-term. Doing your due diligence will make it easier to find a solution that’s right for you.

Remember, it’s particularly important to find the right lender if you know you don’t have the best credit history. There are specific companies that specialize in providing loans for people with poor credit. Once you’ve found a few lenders to choose from, check that you meet with all their basic requirements. These requirements often include:

  • Being a resident of the United Kingdom (with a UK address)
  • Having a paying job that you’ve been employed in for some time
  • Having access to a bank account in the UK
  • Being over the age of 18 (and eligible to take out a loan)
  • Not being in a state of bankruptcy

Show You Can Afford the Loan

One great thing about payday loans, is that they’re generally more willing to overlook things like credit ratings and scores if you can prove that you have what it takes to pay back the money you borrow. Affordability is a common consideration for loan companies.

Showing that you’ve been in a paying job for a while, and therefore aren’t likely to lose your employment any time soon is often a good start. However, you might also need to provide information like bank statements and debt bills, to demonstrate that you’re responsible with your money.

Go through the application process carefully and make sure that you provide all the information they company asks for. You may even need to outline when you plan on making the repayments, and what you’re going to do to ensure that the money reaches it’s destination on time – like setting up a direct debit.

Remember to double check your application before you send it. A small mistake on your application could be enough to get you rejected. Don’t rush through the process online. Take a moment to go through all the questions a second time when you’re done, and check that everything makes sense.

Work on Your Debt and Credit

A great way to improve your chances of getting any loan, payday or otherwise, is to reduce the amount of outstanding debt in your name and improve your credit rating. Remember, while having debt won’t necessarily mean that you don’t get your loan, lenders often view excessive lending as a red flag when sorting through applications.

Additionally, despite what you may have heard, payday lenders do check your credit score when evaluating you for a payday loan. They don’t take this score as seriously as some other lending institutions, but it still helps to have a reasonable rating.

If you know your credit score isn’t the best, then you can hedge your bets by applying with a bad credit lender in the first place. There are also a few things that you might be able to do to boost your credit rating before you apply for your loan. For instance, checking for any errors on your credit report is a good start. Sometimes, misinformation entered by the agencies can reflect badly on your lending opportunities.

If you have terrible credit, and you don’t have enough time to work on improving it by paying bills on time and handling your debts, then you might not be able to get the best deal on your loan, unless you try other methods.

Apply with Someone Else

This is usually the go-to option for anyone who has bad credit that they can’t fix easily. If your credit rating isn’t ideal, or you don’t have a regular income that proves you can pay what you owe, then you can ask someone else to sign for the loan with you.
A co-signer or guarantor gives the lender some extra peace of mind that they’ll get the money that they give you back at some point – even if it’s not from you. If you know someone who has a good credit score who is willing to put themselves on the line for your loan, then this could be worth a try.

Remember, a guarantor or co-signer will be responsible for paying your loan and debts if you fail to follow the rules of your contract or agreement. Take the time to talk through the requirements of the co-signature with your friend or relative before you dive in.

Only Ask For What You Need

There are a few things that can make getting a loan more difficult for people in any situation. Having a bad credit score or limited income are some of the major ones. However, little things can make a big difference too. For instance, if you ask for too much money, this makes you a more significant risk for the lender.

When you’re looking to take out a payday loan, it’s usually a good idea to keep things small. Remember, these lending solutions are there for short-term emergencies only. If you need a much larger loan, then you may also need more time to pay it back. This could mean that you’d be better off applying for a personal loan instead.

Before you start your application, figure out exactly how much cash you’re going to need. By borrowing that amount and nothing more, you’ll save yourself a lot of money in the long-term on interest rates and increase your chances of being approved.

You might find that it’s easier to get your payday loan if you pay for some of the cost of whatever you need using savings and support from family members first. After that, you can explore payday loans as a way of topping up your finances.

Always be Honest

You expect your payday lender to be honest with you about the fees that you need to pay and the terms or conditions of your loan. Similarly, your lender expects you to share nothing but accurate information with them. That’s why it’s so important to take your time filling in the form and answering all the questions correctly.

Don’t try to hide any debts or existing issues you have when you’re filing your application. Remember that your lender will be able to access your credit score, so they’ll see any debts you have or repayments anyway.

It’s also a good idea to have documents available that you can use as proof of valuable information, in case your lender asks for them. For instance, you might need a letter that shows your address, or a passport and driving license to prove that you are who you say you are. If your lender gets back to you with any questions after you fill out the online form, answer as quickly as you can.

Prepare Yourself for Success

The final, and perhaps most important thing to do when requesting a loan, is make sure that you’re prepared for success. This means making sure that you’re ready to pay back the money that you owe, according to the guidelines of the lender. Check the terms and conditions of your loan in advance, and make sure that you read all the fine print.

Once you have your loan ironed out, it’s often a good idea to set up a direct debit or automatic payment that will take the cash you owe out of your account as soon as you need to repay it. If you prove that you can repay the money that you borrow on time, without prompting, this will shine through in your future credit score.

Don’t be afraid to ask your lender any questions you might have about getting or using your payday loan too. It’s better to ensure that you’re not confused by crossing off any concerns that you might have immediately. Most loan companies will have a contact page or email address where you can reach out for extra guidance.

How much would you like to borrow?

£100 to £5,000, same day payout*

Latest From The Boutell Blog

Visit Our Blog
Visit Our Blog