Payday loans

rickyhyde89

I am doing some research into payday loans for uni and I am looking for some help.

In theory how much do you think someone with absolutely no credit history at all would be able to obtain from online high interest lenders? This could be someone who has always lived at their parents so are not on the electoral role and has had no job paid in cash so they have no bank account. I was thinking they would easily be able to obtain around £5000 within a couple of days if the repayments were not taken into consideration but the estimates I have been given from other people have ranged from £500 to £20000 so I'm looking for as many estimates as possible to get an accurate average.

This is to show the risks that these kind of lenders take.

Thanks in advance.

lynz68

No idea about how much you could borrow but you do need to have a bank account.

jacques_chirac

The idea of undergraduate research is you do it yourself, not ask for answers on an internet forum! You cannot form an accurate average based on people's opinions!

rickyhyde89

jacques_chirac wrote: »

The idea of undergraduate research is you do it yourself, not ask for answers on an internet forum! You cannot form an accurate average based on people's opinions!

OK so what do you suggest, I get the loans myself to see how much I can get?!?!?! There is no accurate way of gathering the data required other than asking people who may have applied for these loans before who are in a similar situation or ask the lenders!

Please refrain from commenting if you do not have anything useful to say

rickyhyde89

lynz68 wrote: »

No idea about how much you could borrow but you do need to have a bank account.

Thanks for the reply. I know they would need an account to get their loans but it is just in theory so they would have nothing showing on their credit file at all.

jacques_chirac

rickyhyde89 wrote: »

OK so what do you suggest, I get the loans myself to see how much I can get?!?!?! There is no accurate way of gathering the data required other than asking people who may have applied for these loans before who are in a similar situation or ask the lenders!

Please refrain from commenting if you do not have anything useful to say

I suggest that if there is no accurate way of gathering data you rethink your research topic. What conclusions are you going to be able to draw from unreliable data?

John1993_2

rickyhyde89 wrote: »

I am doing some research into payday loans for uni and I am looking for some help.

In theory how much do you think someone with absolutely no credit history at all would be able to obtain from online high interest lenders? This could be someone who has always lived at their parents so are not on the electoral role.

Happy to help, so, in that vein, it's "electoral roll". Roll as in "roll call".

Secondly, as others have said, research is not asking for people's opinions on what they think a third person could receive, it will need to involve actually finding out yourself how much they will be offered. One route to getting the data is to actually recruit some volunteers and have them put in applications.

opinions4u

Have you asked Wonga what their underwriting criteria are?

I'm sure they'd be delighted to share it.

Unless you have a well thought through survey and a decent sized sample of very honest borrowers (and believe me, a good subsection of PDL borrowers are less than honest) you're stuffed for being able to work out the answer to your question.

I would add that those who are less than honest, obtain credit and then default push up the price for those who are honest. You could fill a couple of pages of theory and pricing assumptions around that.

dealer_wins

A complete guess, but I would say an applicant like you describe would be lucky to get £500 in total.

They may get one or 2 small PDLs from the less stringent companies, but would soon be declined everywhere due to multiple applications appearing on their credit file.

rickyhyde89

Can we keep this thread on topic??

I can not get accurate data as I do not want people to effect their credit files by making a lot of applications and as already mentioned the lenders are not going to disclose their criteria.

If you are not replying to give an estimate then please do not comment

opinions4u

rickyhyde89 wrote: »

Can we keep this thread on topic??

I can not get accurate data as I do not want people to effect their credit files by making a lot of applications and as already mentioned the lenders are not going to disclose their criteria.

If you are not replying to give an estimate then please do not comment

I suggest you take that tone elsewhere.