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Eligibility of Short Term Loans in UK
Instant short term credit in United Kingdom
Short term cash loans are widely available in the United Kingdom. Most consumers pursuing short term loans from conventional banking institutions are not approved due to the high level of eligibility criteria forced upon by the authority. This forces many consumers to pursue unsecured loan options elsewhere which have minimal eligibility requirements.
However, it must be understood that the eligibility factors are placed to protect the consumers from committing to something which they are most likely to fail in. Consumers pursuing instant short term loan are often left rejected and left helpless at their urgent hour of need. But it is equally important for consumers to understand that they must not commit to something that is beyond their capabilities.
The eligibility criterions are placed to protect consumers and assess them for a particular short term loan. In the United Kingdom, there is a minimum age for an individual to be involved in a legal agreement such as a loan, lease, etc. An individual must be at least 18 years old to partake in a short term loan agreement. This verifies that the applicant is capable of making a financial decision which can be held responsible.
In addition, applicants are assessed for their current employment status. This is done to ensure that the applicant has a steady source of income for his expenses. It shows that they are capable of repaying the short term cash loan when they receive their salary. An individual who is unemployed may benefit from such a cash advance but he will have no steady source to repay the cash advance loans unless he borrows again from the same lender or another. This employment verification ensures that only those who are capable are given instant short term loans and protects those who are incapable from further debt.
An applicant is further validated for their residential status before approving them for a short term loan. The service is exclusively for UK residents who are currently residing in UK. This ensures that applicants are residents with a valid home address in the UK. Additionally, applicants must have a valid UK bank account for transactions relating to the short term cash loan. This validation process makes certain that UK residents can receive their funds on their accounts and repayment can be collected from their account.
As discussed above, these are the most basic eligibility requirements for applicants looking to apply for short term loan options in the United Kingdom. It is important to note that ensuring an applicant as eligible is only to apply for a loan and the approval for an application is dependent upon further assessment. To be approved for a loan application, the applicant must have a good credit history which is reflected by a high credit score.