Most creditors have a minimum age requirement of 18 years old when deciding whether to approve the loan application. When you apply a for short term loan, you are required to fill in a loan request form. The loan request form has fields that you need to fill in about your personal information such as age, employment status, salary and etc.
The underwriter will be responsible for reviewing the loan application that you have submitted. Your application will be reviewed under an electronic identification procedure that is run under a credit bureau such as Equifax. During this procedure, the underwriter will compare the information you provide with the credit data that is on file. They will review how other financial institutions perform background check n you and review your payment history.
Normally, the bank will ask you to provide the latest bank statements when you are applying for a short term loan. The bank statement allows the lenders to confirm your full name, physical address, age, salary credits, credit payment, unpaid bills and credit limits. After taking into account all these factors, they will do a calculation to determine whether you are qualified for the loans. The calculation allow them to determine your outstanding debt and whether you are able to afford the loan that you are requesting at the moment. They will make sure that you have sufficient disposable income to repay the loan after paying all your living expenses.
The bank may ask you to provide additional documents if they are unable to verify your data. They may ask you provide clarification on the details that you entered into the application form. If you are below the minimum age requirement of 18 years old, you can obtain a loan with the help of a guarantor that is above 18 years old. This means that the guarantor will be responsible of paying the loan if you are unable to meet the repayment at the deadline.
The reason why creditors do not approve loans for applicants under 18 years old is because young people usually don’t have enough credit history which prevent them from determining their capability in paying back the loan. Normally, the guarantor would be your parents who are working and in employment.
You can apply for the loan as soon as you have found a suitable guarantor. It is best to apply the loan at the same bank where your family do your bank in order to qualify for a low interest rate. Both you and your guarantor have to sign the loan applications and return all the paperwork to the lender. You can easily get approved if your cosigner has a good credit score.