What Is A Payday Loan And Am I Eligible?
Dealing with a financial emergency can seem like an impossible task, especially when it comes to making ends meet and paying off loans. However, with financial help from loans such as short-term loans and payday loans, you can pay off your loans without affecting your credit score. In this article, we will be providing you with insight into what a payday loan is and whether you are eligible.
What Is A Payday Loan?
A payday loan is a loan that someone would typically take out when you experiencing a financial difficulty of some kind. This loan type typically allows the borrower to take out a loan for between £100 and £1,000 and are paid back typically within 30 days. These loans can be used for unexpected bills and even to pay off car repairs if you need it.
How Can You Apply For A Payday Loan?
Applying for a payday loan could not be any easier. With several websites allowing, you to apply for payday loans in just a few clicks, you can begin your application and have the money within your account on the same day. When you have filled out your application, your chosen lender will then conduct the necessary background checks. From there, they will give you a preliminary acceptance and then move on to more in-depth checks. It is important to be as honest as possible in your application as your monthly income and credit score will be checked.
What Are Hard And Soft Inquiries?
When you have applied for a loan, you will then be met with thew background checks and enquiries. One of which can hurt your credit score if you are unaware of what they are. To help you understand the difference, we have listed the different types of inquiry below:
Soft inquiry – A Soft inquiry occurs when you check on your own credit score or when a lender checks your credit score for a pre-approval offer. These do not impact your credit score in any way.
Hard Inquiry – This type of enquiry occurs when a lender you have applied for checks your credit report when they are making a decision. This can stay on your credit report for up to three years and can hurt your credit score if there are too many applications.
How Can My Credit Score Impact My Chances Of Being Accepted
The final element you need to consider is the way that a poor credit score can impact your chances of being accepted. By making sure that your credit score is as positive as possible, you are ensuring your chances of being accepted are much higher than ever before. One of the ways that you can improve your credit score is to look for incorrect information as well as pay off any outstanding debt that you have.
Whether you are looking for a loan shortly or you are just looking at the financing options that are available to you, a payday loan could be the perfect option for you.