The Application Stages of Payday Loans

When applying for payday loans we can expect a number of stages and checks to take place. These checks are all designed to ensure the loan being requested is suitable and affordable. Lenders of payday loans are governed by the FCA and as such, must conduct their service in line with the FCA’s rules and regulations concerning short term borrowing. The application process, from the point of view of the borrower is actually very straight forward and this is thanks to the online based application form. In the vast majority of cases payday loans are applied for entirely online. This means completely the application can often be done in a matter of minutes. In addition, most lenders have websites which can adapt to fit the display of any internet enabled device, whether this be a Smart Phone, laptop or tablet for example. This means the screen view will be clear and easy to follow and complete on most devices. Once the application is submitted, most lenders will aim to deliver a decision in a timely manner and without the requirement for any further input on the part of the applicant. That said, there can be instances for any payday loan lender where there is a requirement for additional information or documentation to be supplied. Today let’s take a closer look at the stages which are standard when applying for a loan like this online.

As we discussed above in order to be consider for a payday loans resource the first part of the process is that of the completion of an online application form. The form itself is usually broken down into several easy to follow stages, gathering your personal information, your employment details and of course your banking information. Once all the required information has been inputted the application can then be submitted to the payday loans lender for review. In order to effectively asses the application, in line with both internal and external rules and guidelines, lenders will usually complete a series of both electronic and electrical checks. This means the details supplied in the application will be reviewed and assessed in two different ways. In most cases the electronic checks will look to verify core information of the application, such as your identity, address and bank account information. In more recent times these electronic checks; also known as a Decision Engine, will also look to assess your credit worthiness and therefore ability to afford the loan requested. Providing the electronic checks are passed to the required standard, this is usually when manual checks of the application will take place. These manual checks will not only ensure a human eye has seen the application before a decision is made but may also give the opportunity to request further information or documentation, should it be needed. Other manual checks will likely look to validate the employment information supplied in the application to be accurate and also make sure budgeting information appears sensible and in line with all the other information which has been supplied in the application form.