Wednesday, June 9, 2010

Are Payday Loans Available to People Who Get Paid Daily?

As with any form of loan or credit, there are a number of rules and restrictions surrounding the accessibility of payday loans. Unusually though, these can vary from company to company, with some being stricter than others, imposing more stringent rules on their customers. With an applicant's employment status playing a significant part in determining whether they are accepted or not, the frequency with which wages are paid is equally important.
Therefore, whilst some stipulate that you must earn a salary that is paid monthly, other lenders are a little more flexible. However, regardless of whether wages are deposited daily, weekly or fortnightly, it is essential that you earn a certain amount. More often than not, this minimum level will be around £750, although some payday loan companies only require £500. As a result, as long as your cumulative salary exceeds this, you stand a good chance of being accepted.
Very few people are paid daily, mostly due to practicality and administration issues. As a result this issue is reasonably rare. In fact, some lenders may not even have a clear policy on this, so you may need to contact them directly before applying.
The main issue for payday loan companies when looking to accept applications from those who aren't paid monthly is that it can be difficult to define an ideal date on which to schedule repayments. Ordinarily, they'd automatically seek to take the money on the next available payday. Unfortunately, in this particular example, the salary you receive on a daily or weekly basis probably isn't going to be enough to cover the cost of a loan, therefore the applicant will need to suggest a date that is more suitable.
From a lender's point of view, this could potentially be seen as an added risk. After all, the idea of a payday loan is for the lending period to run up until the next payday, with this covering the loan amount. Without this certainty, there's a much higher chance that the borrower won't be able to come up with the necessary funds. Of course this is only theoretical, but it is something that the companies need to consider.
If you are being paid daily by your employers, you may need to look a little further when seeking a payday loan. As mentioned, not every lender will be able or prepared to help, so you will have to locate those who can. You might well enjoy more success by using a broker, as they will often give you access to a number of lenders, each one having their own unique criteria for borrowers. It may also be necessary to contact the payday loan company first to discuss your situation and see if they are able to help.
So you might well be able to secure a payday loan, even if you are paid on a daily basis. However, due to lending restrictions, it may prove to be a little challenging to do so. Therefore make sure you spend a little time researching the market and find the company that's best suited to your needs.

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