Moolr.co.uk | Short term loans

What Credit Score Do I Need To Get A Payday Loan?

The smallest requirements for borrowing vary between lenders. They can be the difference between rejection and approval of your loan. Yet, there are a few things that will help you get your loan approved. Read on to learn more as we examine a common question. What credit score do i need to get a payday loan?

How to get Approved for a Payday Loan: Check your Credit Rating

Your credit rating is a measurement of your creditworthiness. Something like a barometer of how likely you are to pay back any sum of borrowed money. A low credit score means that lenders are taking much more of a risk by approving your loan application.

People with low credit scores might have no credit history or a poor history with missed payments. A good credit rating will improve your chances of securing credit.
People with good credit ratings will have a history of borrowing. They will also be making their repayments in full and on time.

Improving your Credit Rating to get your Payday Loan Approved

Your credit file shows your credit application and borrowing history. It is worth checking this, to ensure the recorded information is accurate. Any mistakes on your file could affect your application.

You will also want to ensure you are registered to vote and on the electoral roll. This allows lenders to confirm your identity and address. Moreover, it is one of the quickest ways to improve your credit score if you are not already registered.

It may take up to 8 weeks for your credit file to update, once you have registered to vote.

What Credit Score Do I Need To Get A Payday Loan? Tricks to get a Loan: Ensure you Meet the Lending Criteria

Some lenders trade under different brand names. Yet, there are still many different loan providers on the market.

They all have their own product offerings and credit requirements. Which means that shopping around could help you to find the best credit option to meet your needs.

If you apply without meeting the criteria you can be certain that it will not be approved.

There are a set of requirements you must meet to get your application for finance approved. For the best chance of approval you must meet the following requirements:

1. Meet the basic loan criteria

Credit providers will, first of all, assess your circumstances for risk of non-payment. As such, almost all lenders will need you to be in employment. You must also be a UK resident and have a UK bank account. This is where lenders will pay the money into and recover loan repayments from.

What Credit Score Do I Need To Get A Payday Loan? 2. Meet the Affordability Criteria

You should take a close look at your personal finances. Make sure your net income minus monthly expenditure leaves you with enough income. You should also include rent, food, travel, credit and any other regular expenses.

3. Show Responsibility for your Own Financial Situation

You should not be in a situation where you have an increasing level of debt or long-term money issues. If your personal debt is growing it is unlikely any lender will be confident in lending more money to you. If your debt levels have become out of control, a high-cost, short-term loan may not rectify the problem. In fact, it could exacerbate it.

4. Complete the Form and Pass Identity, Credit and Fraud Checks

Unlike many forms on the internet, a loan application form is often longer and more detailed. This is so the lender in question can make a good decision on whether to approve a loan for you. If you do not complete the entire form, or take unnecessary shortcuts, it may raise flags of concern. This could prevent providers from approving your application, despite completing it to the best of your ability.

5. Pay off existing loans first

Lenders avoid situations where a customer may potentially reach a cycle of debt. Taking one loan to pay another loan is not a good idea.

  No Obligation Application