The Application Stages of Online Payday Loans
When applying for a small loan via the means of an online payday loans lender, you can expect to have to complete a number of different stages; also known as checks. The requirement from us as the potential customer, is actually very minimal and generally the process is quick and simple but ‘behind the scenes’ there is a lot of knowledge driven criteria which is accessing the suitability of a new loan. Whilst online payday loans may have always been perceived to be a lending choice which does not require many ‘checks’, the reality is actually very different.
All online payday loans lenders are regulated by the Financial Conduct Authority and as such, must operate in a manner which is in line with their rules and requirements. The core focus of the FCA is one which is driven by treating customers fairly and ensuring lending options are flexible and able to realistically support the financial needs of consumers who turn to turn. So whilst many to this day may still believe that online payday loans are not correctly regulating and monitoring, the reality is very different indeed.
The start of the application process for online payday loans is the completion of an online application form. These forms are specifically designed to be compact and easy to follow. This means they can usually be completed in as little as 10 minutes. The application requires the information you would expect which means supplying the information needed to make a full and detailed assessment. The information to be supplied will include personal details, such as name and address, as well as date of birth and then banking and employment information in addition.
Most lenders will include a budget section within the application also, asking us to provide information concerning our regular monthly incomes and out-goings. It is really important all the information we provide is honest, accurate and up to date, if this is not the case it may result in our application to an online payday loans lender being declined.
Once our request for borrowing has been submitted, the next stage is to allow the lender to perform their checks and reach their lending decision; being whether the application can be accepted or declined. In order to reach this decision, it is highly likely the lender will adopt a number of different steps. The first of which will almost certainly include an electronic assessment, applied via the use of what is known as a Decision Engine.
The Decision Engines role is to establish whether we meet the core requirements of the lender, whether this is identity validation, bank account validation or have a Credit Reference File which is reflective of an ability to repay a new form of credit. The second stage of their decision process is then likely to include a manual review of our application. Which means a trained and skilled Underwriter will review our credit to ensure the overall suitability of the request. It is only after such checks have been completed, that the ultimate lending decision can be made.
