Why do payday lenders ask for your Internet banking logins? Everything you need to know before you submit your application.
If you've heard anything about payday loans from anywhere except the lenders themselves, that talk is likely to be negative. One area that causes concern is the online nature of the loans and how the application is administered online. How can you be sure that your information is kept secure, especially when it involves handing over your Internet banking details?
This quick 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.
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 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.
Do payday lenders log into 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.
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, so the "quick turnaround time" that is usually the lure of paydays will be lost. However, if you are concerned about handing over your Internet banking logins, find a lender that offers this option.
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I’m wondering why many of the different lenders out there will not allow applicants to send bank statements via email?
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
Safety net asked for my pin and online banking password is this safe?
Hi there,
Thank you for your comment.
Just to confirm though that we do not represent any lender, we do not offer loans ourselves and we also do not represent any company we feature on our site.
With regards to your online banking login being asked when you apply for a loan, there are some pay-day loan lenders that do that. 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.
There’s an article on this page that explains why lenders do this. Hope this can help.
Regards,
Jhezelyn
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
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
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
Hi Gillian,
I did a company search on 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 send them an inquiry 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
Is cash America today online pay advance legit and is it okay to give my banking username and password?
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
I put in for a loan but before I get my loan the want my on line banking information.
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
Is myKredit a reputable lender? They are asking for login details.
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 review here about myKredit.
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
They want my passord and username to my bank account to ensure its me.
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
Do loan companies need your security questions ans. to access banking info. is it required?
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
Advance America Payday Loans is asking me the same thing for my account online username and password. They did say that I can go a head and change my password tomorrow after the funds for the loan are in my account. Do you know about them.
Hi Judy,
I’m unaware of what service Advance America uses to verify your details but here is some information from its site you might find useful:
“We respect our customers’ desire for privacy in managing their personal financial matters. The Payday Loan transaction is confidential, and your personal information will be treated accordingly. You can also be sure that all the information you submit online is sent through a secure server, and we keep your information in a secure database. One way for you to verify that our website is secure is to look for the security icon in the footer of our site that tells you that your information is secure and encrypted.”
You may want to contact them and ask if they use a similar process to what is outlined above.
I hope this helps,
Elizabeth