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Why do payday lenders ask for your Internet banking logins?

Elizabeth Barry
Elizabeth Barry
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When you submit an application for a payday loan online, the majority of lenders will ask you for your Internet banking logins. This is a standard part of the process, so how can you be sure that your information is kept secure?

This guide will take you through why lenders ask for this information, what they do with your Internet banking logins and how your financial details are kept secure during the process.

What's in this guide?

  1. Why do lenders need my Internet banking details?
  2. Do payday lenders log in to my account to view my statements?
  3. Is it safe to give my Internet banking details?
  4. Do I have an alternative to sending my login details?
  5. Compare payday loans

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The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.

Why do lenders need my Internet banking details?

Payday lenders ask for your Internet banking details because it gives them a way to access your statements. This is one way payday lenders are able to process your payday loan application quickly. Instead of you emailing your bank statements from the past three months, you provide your logins and the lender can access them instantly.

Do payday lenders log in to my account to view my statements?

No. When you hand over your login details, the payday lender you're applying with will use a third-party company to access read-only copies of your statements. Popular companies that provide this service include Credit Sense and Yodlee. This is done almost instantly and, more importantly, securely. The payday lender will not have access to your account; it will only be able to see the information it needs to approve your application.

Man entering details for loan application

Is it safe to give my Internet banking details?

  • Payday lenders will not have access to your bank account and neither will the third-party service that facilitates the sending of read-only copies of your bank statements
  • Your Internet login details are not stored
  • The process is encrypted and secure

Do I have an alternative to sending my login details?

Most lenders will still let you send copies of your statements as PDFs through email to be verified manually. Keep in mind that this process usually lengthens the turnaround time by a few days. However, if you're concerned about handing over your Internet banking logins, find a lender that offers this option.

Compare payday loans

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26 Responses

    Default Gravatar
    JosephJune 18, 2019

    When will the money reflect on my account?

    Reply
      Default Gravatar
      AshJune 18, 2019

      Hi Joseph,

      Thank you for contacting Finder.

      The deposit of the approved loan amount to your bank account will depend on the Lender. Each Lender has their cut-off time after you have accepted and signed the terms for the loan. If you are within the cut-off, the money can be deposited to your account the next business day but it will depend on the verification of your bank on when will it reflect on your account. There are banks that requires 1-3 business days.

      I hope this helps.

      Please do not hesitate to reach out again to us if you have additional questions.

      Cheers,
      Ash

      Reply
    Default Gravatar
    ScatzSeptember 9, 2018

    I’m wondering why many of the different lenders out there will not allow applicants to send bank statements via email?

    Reply
      Avatarfinder Customer Care
      JhezSeptember 11, 2018Staff

      Hello Scatz,

      Thank you for your comment.

      There are lenders that require the original print, and not online versions, of the statements. This is for documentation and security purposes. When something happens to the database, these documents in a paper form are used for back up.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

      Reply
    Default Gravatar
    SafteyMarch 11, 2018

    Safety net asked for my pin and online banking password is this safe?

    Reply
      Avatarfinder Customer Care
      JhezMarch 11, 2018Staff

      Hi there,

      Thank you for your comment.

      Generally, lenders will request your bank account details, your account number, and your routing number, for a number of reasons. One reason is to verify that you’re eligible since most loans require you to have an operating bank account to qualify. Nevertheless, please know that they will not have access to your bank account and neither will the third-party service like Finder that facilitates the sending of read-only copies of your bank statements. Lenders will also not store your login details and generally, this process is encrypted and secure through their site. 

      The article above on why do payday lenders ask for your internet banking logins will provide further explanation on this.

      Regards,
      Jhezelyn

      Reply
    Default Gravatar
    AnthonyJuly 28, 2017

    This loan company just asked me for my online banking log in info and said that is how they are going to get me the money is this a scam

    Reply
      Avatarfinder Customer Care
      HaroldJuly 28, 2017Staff

      Hi Anthony,

      Thank you for your inquiry.

      Generally, Payday lenders ask for your Internet banking details because it gives them a way to access your statements. This is one way payday lenders are able to process your application much faster than banks. Instead of you emailing your bank statements from the past three months, you provide your logins and the lender can access them instantly.

      I hope this information has helped.

      Cheers,
      Harold

      Reply
    Default Gravatar
    GillianJuly 22, 2017

    Hi, I am applying for a loan from Progressive Money, and they want my online banking details, via Account Score, to read my bank statements.
    Having read posts in here, it sounds okay, but I spoke with my bank (Santander) who advised not to do this, said it was a scam. Do you know of banks are aware of Account Score etc. I feel worried about giving the account details after speaking with my bank

    Reply
      Default Gravatar
      JonathanJuly 22, 2017

      Hi Gillian,

      I did a company search on the ASIC website and these are what I found out about Progressive Money:

      • Name: PROGRESSIVE M & J BORROWING CO PTY LTD
      • ACN: 160 792 110
      • Registration date: 16/10/2012
      • Next review date: 16/10/2017
      • Status: Registered
      • Type: Australian Proprietary Company, Limited By Shares
      • Locality of registered office: PORT NOARLUNGA SA 5167
      • Regulator: Australian Securities & Investments Commission

      You may contact ASIC if you have other concerns about the legitimacy of their business transactions.

      If I may add, if you’re able to confirm that you wish to continue with this loan application, you may ask your lender to allow you to send printed statements, if that makes you feel more secure.

      Hope this helps.

      Cheers,
      Jonathan

      Reply
    Default Gravatar
    BelindaJune 30, 2017

    Is cash America today online pay advance legit and is it okay to give my banking username and password?

    Reply
      Default Gravatar
      LiezlJune 30, 2017

      Hi Belinda,

      Thanks for your question.

      As a comparison website and general information service, we are not in a position to comment on a service’s reliability. It’s the US regulatory body who’s in a much better position to do this. I suggest you visit the lender’s website and check their credentials. Reading reviews about them might help as well.

      Cheers,
      Liezl

      Reply
    Default Gravatar
    DianeJune 24, 2017

    I put in for a loan but before I get my loan the want my on line banking information.

    Reply
      Default Gravatar
      JonathanJune 24, 2017

      Hi Diane!

      We understand this worries you. But lenders should be only (as allowed by existing regulations) checking your bank statement for the purpose of loan application. They transmit the data in a secure manner and your information should not be stored.

      If you feel uncomfortable proceeding with their request, you may negotiate to send your bank statements thru email, fax or mail. However, this may potentially add a bit of delay to your loan, so just setting your expectations on that.

      Hope this helps.

      Cheers,
      Jonathan

      Reply
    Default Gravatar
    SarahMay 26, 2017

    Is myKredit a reputable lender? They are asking for login details.

    Reply
      Avatarfinder Customer Care
      RenchMay 29, 2017Staff

      Hi Sarah,

      Thanks for reaching out.

      Yes, myKredit is a reputable lender. You can get more details about them on their official page. We also have a myKredit review page which can give you an overview of their features and services.

      If they’d ask you to log in, that means you need to create an online account on their website so you can transact and manage your loan online.

      Hope this helps.

      Cheers,
      Rench

      Reply
    Default Gravatar
    floydMarch 23, 2017

    They want my passord and username to my bank account to ensure its me.

    Reply
      Avatarfinder Customer Care
      HaroldMarch 23, 2017Staff

      Hi Floyd,

      Thank you for your question.

      Basically, Payday lenders ask for your Internet banking details because it gives them a way to access your statements. This is one way payday lenders are able to process your application much faster than banks. Instead of you emailing your bank statements from the past three months, you provide your logins and the lender can access them instantly.

      I hope this has helped.

      Cheers,
      Harold

      Reply
    Default Gravatar
    DuaneDecember 2, 2016

    Do loan companies need your security questions ans. to access banking info. is it required?

    Reply
      Avatarfinder Customer Care
      DeeDecember 2, 2016Staff

      Hi Duane,

      Thanks for your question.

      Payday lenders do require your banking details but use a third-party company to access read-only copies of your statements.. This is done almost instantly and securely. The payday lender will have no access to your account, they will only use your log-in details to be able to see the information it needs to approve your application.

      Cheers,
      Anndy

      Reply
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