How To Get Accepted for a Payday Loan – The Guide

How to improve your chances of getting a payday loan

No one is ever guaranteed to be approved for finance of any kind, including payday loans. If you have been rejected for a loan application in the past or are considering applying for your first payday loan, there are some things you can do to set yourself up for success. Many individuals believe that being approved for a payday loan is black and white, and you are either eligible or not. With many lenders, this simply isn’t the case.

Many different things impact a loan provider’s decision to approve or decline an application. They will consider your credit score, income, existing debt, borrowing history, and more. Before you choose your payday loan lender and make an application, read on to find out how you can improve your chances of being approved.

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How can I get accepted for a payday loan?

If you are sure you meet the lender’s criteria and have decided on a payday loan for your requirements, you might think you are ready to make your application. Before you submit your details, you should consider whether you are going to be approved. Lenders look at your credit score and borrowing history when deciding if your application is approved or not. If you have been turned down for finance previously or not sure that you will be approved, there are some things you can do.

Getting accepted for a payday loan is never going to be a sure thing, but you can improve your chances with these simple steps:

Complete the application with care

Applying for a payday loan can take just a few minutes, and the application process is not exactly lengthy. Don’t rush your application because it can be easy to make a mistake or answer something inaccurately. Spend some time reading through all the questions before you start filling in your details. Make sure you have all the information to hand that you will need for your application, such as ID documents or bank details. When you have filled out the application, take the time to re-read your answers before pressing submit to make sure everything is correct. A simple mistake on the form could instantly impact your chances of being approved.

Be honest

It can be tempting to stretch the truth a little when completing your application. Most payday loan lenders will ask about your current income and outgoings, as well as your employment history. Telling a white lie about how much you earn or how much your mortgage costs might seem like an innocent way of increasing your approval chances, but it can have the opposite effect. Remember that lenders are cross-checking your details against your financial records, and they will easily be able to tell if you haven’t been honest. If a lender sees you being deceitful in your application, you will less likely be approved.

Choose your lender carefully

Many companies offer payday loans, and it might seem easy to just apply for the first one you find. However, you must shop around and choose a lender that suits you. Some payday loan lenders are more flexible than others and will be more willing to approve applications. If you know your credit score isn’t up to scratch, look for payday loan lenders who specialise in poor credit finance.

Check your credit score

Before making an application, you should check your credit score to see how likely you will be approved. Your credit score is what a payday loan lender will see when considering your application so being aware is crucial. If you know your credit score is bad, you can choose a lender that is more likely to approve you or take steps to improve your score before applying. The higher your credit score, the more likely you are to be approved for credit.

Only borrow what you need

When applying for a payday loan, it can be tempting to apply for more money than you really need. If you are borrowing because you need to pay for something specific, only apply for your required funds. The higher your loan amount, the more difficult it will be to get approved, so keeping your loan as small as possible will improve your chances. You should also remember that the more you borrow, the more you will pay in the long run, so borrowing more than you need will end up costing you more in interest.

Respond quickly

When you apply for a payday loan, you will be given an offer if you are accepted, and it is up to you whether you take it or not. Even though the lender has approved your application, they could withdraw their offer at any time. Respond to any offers you receive quickly to guarantee you have secured your payday loan. Sometimes it is worth weighing up all your options upon receiving an offer but don’t take too long to respond.

Improve your credit score

We have already talked about the importance of checking your credit score before applying, but you can also take some steps to improve it. If you find that your credit score isn’t good, you should look at why and see where you can make improvements. Like registering on the electoral roll and paying your bills on time, little things will all work to enhance your credit rating. Make sure you don’t already have a lot of existing debt and pay off what you can before applying for a payday loan.

Find out more about getting accepted for a payday loan

For more information on getting approved for a payday loan, improving your credit score and understanding your debt, check out these useful resources:

Your questions, answered

Individuals use payday loans for many different reasons. From paying for an emergency expense, such as a broken appliance, to helping you make a purchase quickly, payday loans are useful finance products.

When you need a loan in a short amount of time, it can be tempting to apply for the first loan you find. But even when time isn’t on your side, it is worth looking around for the most suitable option. Applying for a payday loan when you can’t reasonably make the repayments or borrowing more than you can pay back can be very problematic in the future. It can lead you into a spiral of debt and leave you unable to meet your growing repayments.

Before you apply for any payday loan, you should check the unique eligibility criteria of your chosen lender. The requirements for borrowers can differ slightly between loan providers, and if you apply for a loan that you are not eligible for, you are sure to be rejected. Making an application when you are not eligible can hurt your credit score and make it more challenging to get a payday loan from another provider. This means it is critical you only make an application when you know you are eligible.

Payday loan lenders have specific criteria that you need to meet to be considered for a loan, and on top of this, they will assess your ability to repay. Each lender will have a slightly different criterion, but generally, the things they are looking for are much the same. These are the most basic requirements that you should have, and if you lack any of them, you will be instantly rejected. The criteria differ between lenders, but generally, they are looking at the same aspects of your life. Before you apply for a payday loan, you should check you meet the eligibility criteria.

Payday loan lenders have a legal responsibility to protect their customers from financial trouble. The eligibility criteria are there to protect borrowers and make sure that they can afford the loan repayments. The Financial Conduct Authority, or FCA, has set regulations that all lenders must adhere to. So while every loan provider has their own criteria, they must all follow the FCA regulations. A typical eligibility criterion would ask that borrowers are:

  • Over the age of 18: Most payday loan providers will not give finance to anyone under 18. This is because they are obliged to make sure borrowers are responsible and informed about their own financial situation. If you are under the age of 18, likely, you will not be able to secure a payday loan.
  • A UK resident: Most lenders in the UK will provide credit to local residents only. Lenders will check borrower details against the credit reference agencies, or CRAs, in the UK. You should ensure you are on the electoral roll if you live in the UK and want to apply for a payday loan. If you live outside of the UK, you will not apply for a loan from a UK lender.
  • Full-time or part-time employed: When applying for a payday loan, you must be in a position to make your repayments, as well as pay the interest amount. Payday loan lenders will only offer finance to individuals with a stable income from either full or part-time employment. Anyone who is not employed or self-employed with good financial records is unlikely to be eligible for a payday loan.
  • UK bank account holders: You must have a UK bank account and a debit card before applying for a payday loan. The lender will transfer funds from the loan directly into a UK bank account, and the repayments are automatically taken from the bank details provided. If you do not hold a UK bank account and a debit card, you will not be eligible for a payday loan.

Contactable by email and phone: When you apply for a payday loan, you must provide contact details, including a mobile number and email address. Payday loan lenders will use these details to verify your application and contact you about your loan. Most lenders require you to apply online, and an email address is needed for the registration phase.

Payday loans are typically required very quickly; the fast approval and release of funds are essential. If you need a speedy loan, our team at The Money Shop can help. We understand that cash flow challenges can come in all shapes and sizes, and sometimes, a fast short-term loan is the only option. Our team can help to assess and get to grips with your current financial situation to work out if a payday loan is a right option for you.

Payday loans are notorious for having sky-high interest rates and additional fees. Even when you need funds quickly, there might be a better alternative to a payday loan. At The Money Shop, we offer a wide range of finance products and loans to suit various situations. We take pride in understanding your unique financial situation and being able to recommend the best solutions.