Payday loans are highly desirable for people in various life situations. People with permanent employment apply for a quick loan, but it is very common for payday loans to be sought after by unemployed persons. You can even say directly that this is a very natural phenomenon – anyone who has a difficult financial situation temporarily will think about payday loans first. These types of short-term loans are perceived as very easy to receive, however, several years of experience in the activities of non-bank companies have resulted in greater requirements when verifying the solvency of potential customers.
What do companies check from payday loans?
Compared with traditional banks, payday loans are a real paradise for those in need of temporary financial injection. First of all, they do not require documentation confirming the source of earning, and in practice sufficient for them is a statement of earnings, which is simply completed in the application form. It is important to confirm the accuracy of personal data, which is checked by means of a verification transfer made from the personal account of the potential borrower to the account of the non-bank company. Often you need to have a phone conversation with a company consultant, which is actually to check that the contact details are not fictitious.
The lender is not interested at all in the entries in the Credit Information Bureau, which means that he does not check the data on his loans or their repayment timeliness. However, it uses debtors’ databases which have the effect of merciless rejection of the application if the applicant appears in such registers. Sometimes, the exception to the rule are loan companies entering the market that want to acquire customers rather risky, but one should not count on it being the norm.
Where to get a loan?
People who have a stable source of income and do not have debts disclosed in the debtors’ registers can apply for payday loans almost everywhere. The unemployed have a very narrow catalog of loan possibilities, however, it may happen that the client has already earned trust before by paying back the loan available at cream bank and thus has the chance to receive another payday loan (it is also worth adding that this portal offers the first loan for free ).
It must be remembered that the status of an unemployed person does not have to be permanent. People who are serious about professional and entrepreneurial work will not sit idle for a long time, and payday pay may be dedicated to a legitimate purpose, such as setting up a business or renting an apartment in a city where there is no major problem getting a job. Receiving a loan by an unemployed person is risky, but it should be assumed that the borrower is a conscious and responsible person, and also takes into account the possibility of additional fees related to the possible extension of the loan repayment date.
What about the risk of loan companies?
Enterprises which grant payday loans are perfectly secured against the lack of repayment of loans taken by customers. They cooperate with reputable debt collection companies and take legal action, then bailiff execution. The costs of the procedure are “shifted” to the debtor, which seriously increases his debt. The lender has ten years to prosecute the debtor. And it does not have to be an unemployed person, because he will want to get out of financial trouble as soon as possible. Therefore, the status of a person without a job should not “put” such a customer in advance as being unreliable.