Uncle Buck will always carry out a series of checks prior to approving and funding a loan. We are a direct lender committed to responsible lending and are passionate about matching our products with those who are most suitable for them.
Whilst we always aim to transfer funds as quickly as possible, we need to carry out the relevant checks so that our customers can afford to make the weekly, fortnightly or monthly repayments without falling into financial difficulty.
Below, we explain the relevant checks involved during the application and underwriting process.
Initial criteria checks
Our payday loans online application form will ask you to fill in a series of questions including your name, age, residential status, income, expenses and bank details.
The focus at this point is to determine if you meet our initial criteria. Your details will be processed through our system that looks at many factors and you will receive a decision in seconds letting you know if you have been provisionally accepted or not.
Provided that you have been successful up to this point, your pre-contractual information and loan agreement will be presented to you and we require you to e-sign this online (or using a special email link) using a unique SMS code after you have carefully read and accepted our terms. Copies of your pre-contractual information and loan agreement will also be emailed to you.
Credit checking is a key aspect of any loan application process. We work with TransUnion, one of the three main credit reference agencies in the UK and we also work with Perfect Data Solutions (trading as Lending Metrics). Using their technology, we are able to review the credit file of a customer and get an idea of how well they have paid other types of credit cards and loans in the past and how much debt they have outstanding.
Those with a good repayment history will tend to have good credit scores and this may increase their chances of being successfully approved. By comparison, those with a history of missed repayments will tend to have bad or poor credit scores and this may impact their chances of being funded.
Your credit score can always go up or down based on your financial behaviour. As you automatically get a credit score when you turn 18, one of the best things you can do is start by joining the electoral roll as this proves that you are a real person with a real address.
Then, you can continue to build and maintain a good credit rating by taking out credit that you can afford and making your repayments on time. This will create a foundation on which you can continue building, maximise your chances of approval and also help you access the best rates for loans, mortgages and credit cards.
These types of checks are dedicated to matching what the customer has asked to borrow and what we believe they can afford to repay. During the application process, we ask questions about your income and monthly expenses like rent or mortgage, travel, utilities, food and other monthly commitments as this allows us to calculate what you can realistically afford each month when it comes to making repayments.
We are passionate about making sure that a customer can afford their loan and will not suffer any late fees or negative impact to their credit score. This means that as part of carrying out sufficient affordability measures, we may reduce the amount you wish to borrow or decline your application for the time being.
The checks we carry out are thorough and on some occasions, we may require additional information from the customer.
In some cases, we may request a phone call with the applicant in order to confirm a few aspects about their application and details of the loan.
We will still carry out the same checks for our repeat customers. We need to ensure that their financial situation is not getting worse and they can still afford repayments.
Repeat customers that have previously repaid on time will still receive some additional benefits. For instance, there is the opportunity to reapply through the existing login section of the website re-confirming information already provided and this will save them having to fill in the application all over again.
Plus, the borrowing facility for repeat customers increases to £1,000 over time whereas it is usually a maximum of £500 for first-time borrowers.
Why are checks so important?
Checks are essential to making sure that the customer gets a product that is right for them, and not one that will cause them financial difficulty. This is part of our dedication to treating customers fairly that puts customers at the heart of everything we do.
By failing to carry out sufficient checks, it can lead to the following outcomes:
- Give a loan to someone who is unemployed
- Lend to someone with too many expenses
- Lend too much to a customer and cause repayment difficulties
- Cause a spiral of unsustainable debt for the customer
For any further questions, feel free to contact our customer advisors who will be happy to answer any questions that you have.