There are many different loans and some have quite strict rules and regulations about who can use them. They might have all sorts of restrictions and it is good to know what is allowed and what is not. With a payday loan there are a few requirements that you have to adhere to.
- Over the age of 18 – this is a legal requirement in the UK and so would apply to any loan that was being taken out. It makes sense that only those considered to be adults will be able to take out a loan. This is because they will be more likely to have a reasonable income and be capable of repaying it and they are more likely to be more responsible.
- Live in the UK – UK loans are only available to residents of the UK. If you live elsewhere then you will need to borrow from the country that you live in.
- UK bank account – you will need a UK bank account so that there is somewhere to pay the money that you have borrowed in to. You will also need an account to set up the direct debit so that the loan gets repaid. This is set up so that the loan is repad automatically when you need it to be. It is good to have this in place so that you do not forget to repay the loan as this will lead to you having to pay extra charges which you want to avoid if you can.
- Have an income – It will also be necessary for you to have some sort of income. You will need to repay the loan on the day that you are paid and therefore you will need to be receiving pay in order for this to be possible. It may not necessarily need to be a salary though. You may find that you will still be able to have a loan if your income is from a pension, interest or benefits. It will be worth checking with the lender though, to find out.
As you can see, there are very few rules which you have to consider when applying for a payday loan. This means that many people will be eligible to have them. Of course, when you apply for them, the lender may have their own individual restrictions. For example, there are some that will only lend new users a small amount of money to start with. Then once they are able to prove that they can repay it, they will then allow them to borrow more. This is a way of building up trust with the lender as they do not worry about the credit score of the borrower so will need another way to find out whether they can trust them to repay the money that they have been lent.
The problem with this is that it can be all too easy to borrow money. As there are very few restrictions it means that almost everyone will be allowed a loan and this can lead to lots of borrowing. If you need money in an emergency and have compared your options and this is the best one and you are sure you will be able to repay the loan then it could be a good option for you. However, if you just want some money so that you can treat yourself but know that you will not be able to afford the repayment, then this is not a good idea at all. So make sure that you think things through and consider your financial situation and what you will be able to afford.