women filling out forms

Is it difficult to apply for a short-term loan?

women filling out forms

Is it difficult to apply for a short-term loan?

Short-term loan companies are likely to make the application process as simple as they can, although each route may be slightly different.

The application process for a short-term loan can vary from lender to lender, but they tend to be relatively straightforward to apply for. 

We run through some of the most common types of short-term loan, and what you can expect during the application process.

Applying for a payday loan

  • Some lenders have high street locations you can apply at, while others solely do their applications process online. [1]
  • The money is typically paid directly into your bank account, and the lender may ask for a continuous payment authority that lets them take the repayment amount back themselves, plus the interest. [2]

Applying for a doorstep loan

  • An application for a doorstep loan may begin online, where the lender can often give you an early indication as to whether you will be accepted.
  • If successful at this stage, the lender will likely arrange for a representative to visit you in person at home, where they will take some personal information and carry out an affordability assessment.
  • If your application is successful, they will come back a second time to give you the cash. [3]
  • You may need to have ID to hand to show it as part of your application.

Applying for an online loan

  • Online loans are slightly different to some payday loans in that they cannot be applied for in person at a high street location.
  • Applied for and managed entirely through the web, you may find that online loan companies can send the money to your bank account if your application is successful.
  • You may need to be employed and receiving regular pay cheques, and have a bank account. [4]

Applying for a credit union loan

  • The application process for credit union loans varies from area to area, but you typically need to be a member to borrow, which could mean the loan is regarded as less accessible to some individuals than other loan types.
  • You may need to have ID to hand to show it as part of your application.[5]

Applying for a short-term loan could be made quicker by accurately providing all the required information up-front. Lending processes and criteria can differ from lender to lender, so always check if you are unsure.

 Sources:

[1] Taken from Citizens Advice – Payday loans. Retrieved Feb 9th, 2018.

[2] Taken from The Money Advice Service – Payday loans – what you need to know. Retrieved 9th Feb, 2018.

[3] Taken from The Money Advice Service – Payday loans – what you need to know. Retrieved 9th Feb, 2018.

[4] Taken from Pounds to Pocket – Online loans. Retrieved 9th Feb, 2018.

[5] Taken from The Money Advice Service – Borrowing from a credit union. Retrieved 9th Feb, 2018.

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