All online payday loans have minimal
requirements applicants must meet in order to complete the application. These
requirements usually follow these guidelines:
o Have a current job for at least 3
consecutive months.
o Take home a minimum of £800.00 monthly after taxes.
o Have a valid checking account open for at least 3 months.
o Take home a minimum of £800.00 monthly after taxes.
o Have a valid checking account open for at least 3 months.
Certain lenders also require current bank
statements and paycheck stubs. Online payday loans lenders also take into
account the number of NSF's (non sufficient fund) charges an applicant has
incurred in the past 30 days, and the number of current outstanding online
payday loans.
An advantage of payday
loans over 12 months to most consumers is that they are available to people
with no credit, poor credit or bankruptcies. Unlike traditional lenders, online
payday loans lenders do not request credit bureau reports from Experian, TRW,
or Equifax. Instead, most larger online payday loans lenders and banks that
partner with online payday loans lenders use consumer information services
provided by Tele-Track. These services do not check credit history; they simply
verify the applicant's banking history information, including status of
checking account, number of NSF's and current outstanding online payday loans.
When applying for online payday loans, it is very important to be truthful and
correct in providing information and answering all questions, or the
application may be declined.
IMPORTANT: If you are considering applying for
online payday loans, only apply for one loan at a time. If an applicant applies
for multiple online payday loans, each loan application will be reported, and
may result in ALL applications being declined.
Once completed, the application is forwarded
to the online payday loans lender for review. If the applicant meets the
minimum requirements they will be notified (typically via email) that they are
approved. The payday lender determines the amount of the payday loan, usually
between £100 and £500. The amount of the approved payday loan depends on
several criteria, usually monthly income, direct deposit, length at residence
and job, availability of bank statements and paycheck stubs, number of
outstanding NSF's and other online payday loans. Repeat customers with an
online payday loans lender are more likely to receive larger loan amounts than
first time applicants.
Once approved the applicant will be asked to
print and sign a signed copy of the online payday loans lender's contract with
the loan amount, loan fee and terms specified. Lenders may also require faxed
copies of paycheck stubs, bank statements, and a personal check.
When the fax is received the lender will
verify the information is correct and administrate the loan. Most online payday
loans lenders will electronically deposit the loan amount in the applicant's
checking account overnight, depending on the time of day the loan application
was received and approved. Online payday loans lenders typically do not process
loans on weekends.
On the specified pay date, the online payday loans
lender will electronically withdraw the loan amount plus specified fees. For
instance, if the payday loan was for £300, and the loan fees were £20 for each £100
borrowed, then the amount electronically withdrawn would be £360.
Most online payday loans lenders offer clients
the option of "rolling over" a loan, meaning that the loan is
extended to the next payday. The client can contact a lender and request to
extend the repayment date to the next payday. In most cases the fees charged
will double, meaning a £300 payday loan "rolled over" would incur a
total fee of £60, requiring a repayment of £420. Extending repayment dates is
something that consumers should approach with caution as the resulting fees
accumulate quickly.
