The key aspect that makes the payday loan application process so quick is the lack of background checks and in particular the rarity of pulling up applicants’ credit record.
The lack of applicants’ credit checks is also one of the reasons payday loans are so popular, as unlike other loans, they are available to people with both bad and no credit history.
It’s important to note that even though an applicant’s credit history generally doesn’t play a role in lenders’ approval criteria, there are exceptions.
Generally, about 10% of payday loan lenders will choose to check an applicant’s credit history during the pre-approval phase. This is likely to be outlined in the lenders terms & conditions.
With regards to online payday loan lenders, once the pre-approval phase has been complete, a decision on whether or not the applicant is eligible is usually known within minutes.
If eligible the applicant will then need to supply the lender with some personal information. This usually includes proof of income, residence, bank account and employment.
This information is usually backed up with recent bank statements, payslips, utility or bank letters (to prove address), and photocopies of both sides of the relevant accounts debit card.
To make the process as quick as possible this information is usually faxed, or emailed. However, there are now many lenders that advertise “fax-less” or “paperless”
payday loans. Such lenders generally confirm applicants’ details over the telephone.
Once the lender has all of the required details and the application process is complete, the loan will usually be deposited into the applicants account within 24hours.
Liam is a UK based author, currently focusing on payday loans. Compare payday loans online today.
