Loan companies have several options to check your income information.
The basic one is the option to ask you to send the applicable certificate. Based on this document, the lender can determine where you work, what position you hold and how much you earn.
However, this method is constantly losing popularity
After all, a non-bank loan must be quick. Obtaining such a document, sending it to the lender, and then analyzing it takes a lot of time. Because of this, many customers may opt out of a particular company’s services (in particular when it comes to the small amount of the loan).
Because of this, loan companies are looking for faster ways to verify the financial position of their clients. One way is to make a phone call.
Such a conversation can take place directly with the client or (in special cases) with his employer. This method also has its drawbacks. A telephone conversation does not allow an accurate assessment of the financial situation. In addition, not every client wants his employer to know that he is using the services of a loan company.
The most popular way to verify a client’s income is to analyze the operations on his bank account. In this case, the customer is required to send to the lender a statement of his bank account (e.g. from the last 3 months). These data enable reliable analysis of his financial situation (e.g. whether he regularly pays the bills, where he is employed, where the money appears on his account, etc.).
In order to speed up the process of verifying loan applications
As much as possible – such an analysis is increasingly carried out automatically. One of the programs for such analysis is the Kontomatik system. With it, the loan company gets access to all information in your bank. You don’t have to download any statements and send them to the selected company.
The way the lender will verify your employment is clearly indicated in the contract (or annexes to it). Remember that your personal data is protected. Therefore, you must voluntarily agree to any of these methods.
Such consent can be expressed in writing or online (by clicking the appropriate button, e.g. “I declare that I have read the regulations … “, “I declare that I agree to verify my data in the system … “
Do payday loans check employment?
Loan companies exceptionally verify data about your employment. For them, the most important is the level of your income (and these do not necessarily have to come from work). If you work “black” or make a living from other sources – you have no chance of a loan at the bank.
However, in the case of online loans – the system will automatically notice the receipts in your account and then analyze them. This means that you have a chance to access additional funds even if you are formally “unemployed”.
Remember, however, that most companies require a job to be included in the loan application. If you enter the wrong information there – in the case of non-payment of the obligation – it can be the basis for accusing you of fraud.
From the point of view of a loan company – verification of the place of employment is not the most important thing. You can find out whether a particular company performs such a check from the loan agreement and the regulations. Remember that you must agree to this check!