Were you turned down for a payday loan?
Most of us have applied for a credit card, loan and even payday loan at some point in our lives, however sometimes the application goes through and other times it doesn’t, even though your circumstances haven’t changed, sounds familiar?
Ever wondered why your payday loan application was turned down? Below you’ll find the common reasons as to why someone will be turned down for credit, it’s not some sort of magic algorithm but a credit score calculated using your application details and your credit report. This will then calculate a score that varies from lender to lender, and the score will determine whether you get your payday loan or not.
Check your credit file
The first step to finding out why you’ve been refused a payday loan would be the check your credit history. Your credit history will detail your debt.
You have no borrowing history
Payday loan lenders, credit card companies and other credit providers will prefer a borrower who has got history of paying debts diligently. Without a borrowing history, a payday loan lender will not be able to tell whether you are someone who repays on time and manages your credit effectively.
You are not on the electoral roll
This is a very common reason as to why people are refused credit. The electoral register is a tool mostly used by payday loan lenders to verify your identity and that you live where you say you live.
Too many searches on your credit report
Whenever you apply for a payday loan, the lender will do a search on your credit report; this means there will be a track record for every time you apply for credit. Usually this doesn’t really affect the likelihood of getting a payday loan accepted, however if you apply for a payday loan from several lenders in a very short space of time they might think you’re in too much debt (unlikely to make repayments), desperate for cash, you’re a fraudster, etc.
Lender requirements vary
Some payday loan lenders prefer younger audiences, others prefer people who fit within a specific socio-economic group, you’ve done nothing wrong, it might just be you do not fit their profile.
You have been in debt in the past
Missed credit repayments stay on your record for three years, so while you may be financially fit today, lenders may take a dim view of your past. Bankruptcy can remain on your file for up to 15 years and CCJs will be held on file for six years.
Fast cash payday loans can help
When you need fast cash and payday is a few days away, a quick solution is to get a fast cash payday loan. These loans are an excellent resource to get emergency money, approval is usually immediate and most cash payday loan lenders will transfer the money into your bank account the same day.
How much can you borrow?
As a new user, fast cash payday loan lenders will minimise their risk by starting to lend you lower amounts of money, usually between £200 to £500. Once you’ve taken the payday loan and you’ve repaid in full, they will increase the amount you can borrow. Fast cash payday loans can be costly, so before you decide to take up a payday loan you should weigh whether you can pay back the interest accumulated.
What does a fast cash payday loan cost?
Fash cash payday loans are at the expensive end of the financial industry, usual interest rate paid is 1% per day, so £1 per £100 borrowed per day. This amount might look pretty hefty but bear in mind that usual loan term is 30 days or less. Some payday loan lenders will also charge a transmission fee for depositing the amount into your account.
How do you qualify for a fast cash payday loan
If you have a steady job, are 18+ and have a UK bank account and valid debit card, you qualify for a fast cash payday loan:
- No faxing
- No phone calls
- No waiting
- No credit check
Before you decide to apply for any form of credit you need to ensure that you’ll be able to make your monthly repayments or in the case of a fast cash payday loan on the chosen date. Only you can decide whether to apply or not, but please do so only if you’re confident you’ll have the cash to make repayments comfortably, otherwise do not take a loan, the cost of missing repayments will only increase over time and put you in a difficult financial situation.