The checks we carry out during the application process

As part of our commitment to responsible lending, we will always carry out a series of checks before approving a loan. By carrying out proper checks, we are able to determine whether an individual is eligible for a loan with Mr Lender. If successful, we can offer a loan amount that they can afford to repay and won't cause them financial difficulty.

Our application form tells us if you meet the basic criteria for applying such as being over 18, a UK resident and in employment. Once you have completed the form, we will run some automated checks taking several factors into consideration. You will receive an instant decision on the screen letting you know if you have been provisionally accepted and if so, you will be required to electronically sign a loan agreement and undergo some further checks before receiving funds into your bank account.

Credit checks

We work with leading credit reference agency TransUnion to perform credit checks on every individual before funding their loan.

A credit check provides information about the applicant's creditworthiness including:

  • Whether they are on the electoral roll
  • How much credit they have outstanding
  • Repayment history of other credit
  • Types of credit they have open
  • New credit that the individual has applied for

The information allows us as a lender to determine the risk of default and whether the customer is right for the loan and amount they have applied for.

Every individual has a credit score and those with higher scores are considered a lower risk of missing repayments so they are more likely to be successful in their application. Those with low credit scores suggest that they have missed a number of repayments in the past; therefore, they are considered a high risk of default and are less likely to be accepted.

Affordability checks

Affordability assessments aim to match how much you wish to borrow with what you can afford to repay without any difficulty. To get a better idea of your affordability, we ask various questions in the application form including how much you spend on rent, food, utilities, council tax, travel and other monthly outgoings.

In addition to this, we ask for details about your employment and may request a copy of your most recent pay-slip or bank statement in order to confirm your monthly income. This can be sent to us by email or live chat.

So using the information about your monthly expenses and salary, we are able to calculate how much you can afford. By carrying out effective affordability checks, we are able to give the right product for the customer and this may involve granting the loan, adjusting the amount they have asked to borrow or declining the application.

A phone call to confirm your details

If your application has been provisionally approved and you have electronically signed the loan agreement, our underwriting team may call you to confirm some final details. We just want to double check things like your monthly income and your pay date to ensure that all collections go out on time. This process also mitigates the risk of fraudulent applications being funded.

We always treat any information we receive with the utmost confidence and will never discuss your loan with anyone else without your permission.

Repeat customers

Our checks will also take into consideration whether you are a repeat customer. By having a loan with Mr Lender previously, it gives us a better idea of how well you manage credit. If you repaid your last loan with us on time, it will increase your trust rating with us and this may improve your chances of getting a loan.

However, we will always run our series of credit and affordability checks, even for repeat customers. We need to ensure that their financial position is improving and not getting worse.

The maximum amount you can borrow for your first loan is £500, however, this can increase to up to £1,000 for repeat customers but only provided it meets their affordability and they pass the relevant credit checks.

Receive funds within one hour

Provided that you meet of all our checks, you will receive confirmation by email stating that your loan has been approved. Funds are typically transferred to your debit account within one hour from approval or at latest by the end of the business day.