Payday Loans UK and The Different Stages of Application

When applying for a small loan online there are likely to be a number of key steps that will be completed by the potential lender, in order to decide if the loan requested can be granted. Today we will be looking specifically at payday loans UK which covers lenders who offer loans which are considered ‘short term and high cost’ borrowing. This market place is regulated by the FCA (Financial Conduct Authority) and as such the practices of the lenders trading within this online market place are governed by the FCA and the rules set out by them. The FCA is responsible for ensuring their regulated lenders are treating customers fairly and therefore being proactive in their approach to ensuring loans are approved in a manner which is considered and affordable to each and every applicant. As a result of this payday loans UK lenders will undertake a number of steps to not only ensure the requested loan is suitable for the individual requesting finance but also that the FCA’s requirements have been met and ultimately satisfied. Today we will be looking specifically at the application stages likely to be taken as part of applying and potentially being approved for a short term, high cost credit facility.

Different Stages of Payday Loans

Typically speaking these ‘type’ of loans are accessible via the means of an online based application form. There are still lenders who exist via more traditional means being a store front on the high street but the convenience of the online application means that these type of loans are often the vastly preferred choice amongst borrowers. Most payday loans UK lenders now offer their application form via all means of internet enabled devices meaning the form can be completed on a Smart Phone, tablet or laptop, as well as the traditional desktop. The application itself is usually made up of 3 stages, designed to gather personal information, banking information as well as banking information of the applicant. Usually the time required to complete such an application is little longer than 10 minutes.

The information gathered at each stage of the application will allow the potential lender the ability to assess whether the required loan is financially viable, meaning whether the applicant has the means to make repayment for the commitment proposed. This assessment will be achieved through a number of different electronic and also manual based checks, preformed once the application has been completed. Depending on the lender the time it takes to make a lending decision will vary slightly but many lenders aim to deliver their final decision within a manner which is both timely but also full considered. Given that most bank accounts now are enabled with the facility of Faster Payment, this means when a loan is granted the applicant can normally expect to receive the agreed funds the same working day. Ultimately the lender wants to make the right decision regarding an application, based on information and facts gathered throughout the application process.