Young consumers are the largest group among people borrowing money at non-bank institutions. It is these entities, not banks, that provide them with a source of additional financing for their needs. Is this payday pay for everyone? Does the fact of being an adult make it possible to take out a loan? What other requirements do you need to meet to get financial support from a loan company?
Moments for young people – who is reaching for her?
When we write a payday loan for young people, we mean people who are under 30 years of age. According to several studies on the age structure of borrowers, every third customer is under 30 years of age. More detailed data from 2018 show that:
- 6% of all borrowers are people aged 19-20,
- 23% are people between the ages of 21-25 and this is the most numerous age group,
- 17% are clients aged 26-30 – it is also a large, third largest group among borrowers.
This draws quite explicit conclusions and confirms the thesis that payday loans for young people are the most popular among the available offers. It is easy to count that it is almost half of all clients lending at non-bank institutions.
Importantly, the vast majority of young customers are interested in online payday loans. This is of course not surprising, because people in this age range are doing great online. As consumers, they pay close attention to the availability of services and the opportunity to use them at any time convenient for them. Especially the money loan offers in 15 minutes are attractive because of the ability to immediately meet a specific need. This is the feature and need that distinguishes young consumers.
Payday loans for 18 years – is it possible?
What basic conditions must be met to get a payday loan? First of all, you need to acquire the ability to perform civil law transactions. It is the ability to independently shape your own legal situation, which is associated with the acquisition of rights and incurring obligations. Under civil law, such a person is entitled to receive and make declarations of will. These, in turn, create, change or cease legal relations.
These are the necessary rights to be able to make any binding commitment. And that is the conclusion of the loan agreement. We acquire the ability to perform civil-legal activities upon reaching the age of majority, i.e. eighteen years. Theoretically, this should be enough to apply for a loan from a non-bank institution. Unfortunately, not all entities will provide it.
Loans from 19 years and above
How do lenders approach young consumers who would like to take a payday loan? Is the mere fact of being of age and having the necessary identity document sufficient? As we have already written, unfortunately not. Most of the offers available on the market place the age limit slightly higher, which is necessary to apply for financial support.
The vast majority of loan companies address their offers to people over 20 or 21 years old. This also explains why the 21-25 age group is relatively the largest among borrowers. The slightly higher age limit set by loan companies is probably dictated by limiting financial risk, in which payday pay is very young. It is difficult to expect that an 18-year-old will be able to demonstrate the financial stability necessary to pay back the debt.
But market offers are so diverse that the needs of the youngest consumers will find the answer. Among the non-bank entities there will be several that offer payday loans for 18 years or loans for 19 years. What requirements must be met to receive them? As it turns out, it’s often not enough to just show an identity card.
Short-term payday for students and more
The requirements set by loan companies for their young clients are not necessarily excessive. In principle, it can be said that they do not deviate from the standard requirements that other older customers should meet. There will also be some amenities related to the more specific situation of young people, especially those related to potential sources of income. You will also find here profiled offers, such as payday pay for students.
Among the loans for young people, those with the highest granting are those which from the lender’s point of view are properly secured. This is a positive financial verification of the person applying for the loan. What, then, is expected and what will the loan company want to check?
First of all, a positive credit history is important. If there are no debts in our consumer account, it significantly increases the chances of granting funds. To this end, the company will check the records kept by the Credit Information Bureau or the Economic Information Bureau. It should be emphasized here that if we had previously incurred financial obligations and settled them on time, it would be a sign for the lender that we can be trusted.
Secondly, the lender will want to confirm our financial credibility. A permanent source of income is very often a condition for receiving funds.
Short-term pay for young people and sources of income
What does the term source of income mean? What can they be? Is it only remuneration under an employment contract? Of course, everything depends on the specific offer. But most companies meet the specific capabilities of young people. Accepted sources of income may come from:
- job contract,
- work contracts or commission contracts,
- annuity received,
- the scholarship received – including social and scientific scholarships,
- odd jobs.
Without income declarations, the pool of offers that we can use is significantly reduced. But, it is worth emphasizing that such a certificate, or rather a confirmation of receiving regular receipts, can also be a bank statement from the last few months.
Payday pay, payday installments
The amount of the loan depends again on the type of offer. It is worth checking the ranking of offers of various entities to choose the one on the most favorable terms. This combination may also include payday installments.