Your job will have a major bearing on whether or not you will be able to successfully apply for a payday loan However its not simply where you work but also the amount youre paid and the frequency of the salary that will be taken into account
Any ethical short term lender will have a minimum salary threshold that all applicants must exceed to gain acceptance Whilst some may allow for a guarantor thus lowering or removing this minimum limit generally you will have to earn at least 750 to even be considered for a loan This is an entirely logical and necessary part of the payday loan system
Its important to remember that lenders only ever want to provide funds to consumers who can afford the repayments If they were to give money to somebody who doesnt have the financial wellbeing to cover the loan the company stands to lose a significant sum potentially at least This is why restrictions are put in place and enforced strictly Otherwise all borrowers would suffer from even higher charges and interest rates to cover these additional losses
So how does this affect those who get paid fortnightly
Well unlike almost any other borrowing option payday loans are repayable in full within a working month This means that applicants will be given a maximum period often 30 to 40 days to cover the entire loan amount
Understandably if you take out a payday loan and have only a few weeks to pay it off your income is absolutely critical It will act as a guarantee and ensure that you dont find yourself defaulting This is how the lenders view it as well They want to know that you will definitely have the money available on a specific date which is why they generally choose to automatically request the transfer on your next payday
Obviously if youre paid twice a month this can create something of an issue Unless you receive a sizeable salary theres a risk that you might not receive enough on each individual payday to cover the full loan amount Clearly this will heighten the risk for any lender which is why some choose to only accept those who are paid monthly
After all your monthly wage might exceed the amount youve borrowed hugely but what happens if you spend a fortnights pay before your next income is due Assuming that your outstanding exceeds this bi-monthly salary you wont have enough in the bank to be able to cover the repayment This will mean that you automatically default triggering a charge from the lender and possibly having the loan rolled over to another month accruing further interest and cost
This is entirely hypothetical of course but it is something that all lenders need to consider before handing over cash to anybody The good news though is that there are a fair few payday loan companies who are prepared to take this chance and are more than happy to accept applicants who are paid fortnightly and even weekly You will still need to be able to prove that your monthly salary is over and above the minimum level as mentioned above and could initially find that the amount that you can borrow is restricted although this is generally the case whatever your financial status
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