Improve your chances to get a payday loan
November 26th, 2008Were 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. Bankrupcy can remain on your file for up to 15 yeards and CCJs will be held on file for six years.
December 2nd, 2008 at 5:52 pm
There definitely are reasons to get turned down for a payday loan, but in general, payday loans are quick and hassle free. It’s good to keep that service and option.
January 9th, 2009 at 1:14 pm
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