Lenders also play their part in ensuring that your short-term loan is safe. They will check whether you’re a good candidate for borrowing from them when you apply for your short-term loan online. This is one of the ways they lend responsibly and identify whether it is safe for you to have a loan. When you apply, you’ll be required to fill in an online form that asks questions about your personal circumstances. This will include questions about you, your income, your residential status for the last 3 years, your monthly outgoings and potentially your salary (bank statements or wage slips may be required as proof of income). This information is key for the lender to assess your affordability. They will combine your affordability with the outcome of a check against your credit file to make sure you are a creditworthy candidate for a loan. As responsible lenders, if you do not meet their criteria your application will be declined
Lenders usually do everything they can to prevent you from missing repayments. They provide the dates and amounts clearly in your agreement, and you can request a reminder for each payment a few days before it is due. You can also use your calendar or smartphone to set your own personal reminders.
Lenders use a continuous payment authority (CPA) to collect their repayments, which is something you agree to when you apply for your loan. A continuous payment authority takes scheduled payments automatically from your bank account on the dates you have agreed. This means that providing you have sufficient funds in your bank account, you don’t need to do anything else in order to repay the loan. You can just let the repayment be taken from your bank with no extra hassle or worry.
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