Will a Lender Call My Employer?

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Written by Daniel Tannenbaum on May 10, 2021

Updated May 14, 2021

A lender will only ever contact an applicant’s employer in certain circumstances. For example, if you are applying for a mortgage or certain loan products, then some lenders may phone or email your employer to verify your employment, as well as  other additional financial details.

However, for other types of borrowing, such as short-term loans, it is less likely that a lender will contact your employer and the entire process is completed online and almost automatically. Lenders of short-term loans should only contact your employer during certain situations – such as a last resort when trying to get in contact with a borrower who has fallen behind on their loan repayments.

Applying for loans can be a personal subject, and one you might not want shared with your employers. For those concerned about lenders contacting their employers, you can rest assured that this will only be done when necessary, and only ever in certain situations (e.g. when applying for a mortgage, or when struggling to get in contact with borrowers who haven’t paid their loan repayments on time).

 

Why Do Lenders Need to Know My Employer’s Details?

Lenders will usually need to know your employment details to confirm that you’re actually employed, and ultimately that you’re earning a regular, stable enough income to afford repayments on the loan.

However, while lenders will often need your employer’s details to confirm employment, it doesn’t mean they’ll contact the company you work for letting them know you’re applying for a loan.

For many short-term loans in particular, just having your employment details down in an application can help lenders when assessing your eligibility to borrow – as your income can be a key determining factor for your eligibility to borrow.

 

When Would a Lender Contact My Employer?

A lender will only ever contact your employer in certain circumstances. For example, if you’re applying for a mortgage or certain products like credit cards or larger loans. Equally, if you’ve fallen behind on your short-term loan repayments and the lender is struggling to get in contact with you via your personal contact information.

After attempting to contact a borrower about outstanding loan repayments via their personal email address and phone number, as a last resort, they may then speak to your employer to try and get in touch with you.

 

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Do I Have to Be Employed to Take Out a Loan?

Yes, you typically you should be in employment to be eligible for a loan. The eligibility criteria will vary from loan-to-loan, with different types of lending having different requirements for their borrowers.

There also other exceptions, such as loans for pensioners, where your pension can be used in lieu of your employment income – and you can also release equity from your house if you are a homeowner (and no employment is needed).

For example, our eligibility requirements for short-term loans include the following:

• Must be a UK resident
• Must be over 18
• Must be employed (either part-time or full-time)
• Must be able to prove they can afford monthly repayments
• Must have a valid UK bank account, email and mobile

While borrowers looking for loans with bad credit loans and CCJs can often struggle finding loans they’re eligible for, through Lending Expert, you can find such financial products where applicants with bad credit or CCJs are considered.

 

What Other Information Do I Need to Provide with Lending Expert?

When applying for any type of loan, you’ll have to provide a few key details about yourself and your financial situation to help lenders determine whether you’re eligible for borrowing.

This can include the following:

• Your name
• Your contact details (e.g. email and phone number)
• Your date of birth
• Your employment status
• Your employer’s details
• The amount you wish to borrow
• How long you wish to borrow for

It’s important to note that the information you’ll be expected to provide in your loan application can vary depending on the loan you are applying for. Therefore, it’s best to read up on the loan you’re wanting to borrow, and find out the details the loan application will require you to provide.

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