Although payday loans are one of the most flexible ways to borrow money it does not automatically mean that you will be approved. Any loan company has to have certain checks and balances in place to make sure the person they are lending money to can afford to repay that money.
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Although some lenders specify that there are no credit checks every lender will do some sort of background check on their customers. If they just lent to everyone who requested a loan regardless of their circumstances they would very quickly go out of business. Many lenders that specify no credit checks often mean that they will not base their lending decision based on your credit score. If you try to get credit or take out a loan with a high street lender such as a bank or building society they have very restrictive lending practices. If your credit score is not good enough you will be refused a loan, there will be absolutely no leeway which can be frustrating especially if you are able to repay the money that you want to borrow.
Remember a lender is not in the business of helping you out; they are there to make a profit just like any other type of business. Payday lenders are able to lend to people who may not have a great credit score but are still able to repay a short term loan. Many people turn to direct lender payday loans exactly because of the fact that they can take your current individual circumstances into account rather than just basing their decision on a impersonal rating.
With any type of loan there are going to be certain criteria that you have to meet in order to qualify for a loan. Some lenders require you to have a debit card associated with your bank account whilst others offer direct debit loans where you repay the money via a direct debit set up with your bank.
Most payday lenders will based their decision on your current earnings. If you request a loan which is larger than what you currently earn then they will most likely refuse your loan. This is a common reason for refusal, asking to borrow too much. You may be turned down directly or they may come back to you with a lower offer, say you asked for £500 they may come back to you and say that they can lend you £450.
If you have been declared bankrupt you may not have been able to get a bank account. Having a bank account is one criteria than every lender insists on. A bank account is the method the lender will use to deposit your loan into and also the method most lenders use for you to repay the monies borrowed.
Although most lenders now have alternative repayment methods some still insist that you have a debit card in order to get a loan. You should be able to get a same day loan without a debit card but if your lender has refused you just for that reason you should have no problem borrowing the money from elsewhere.
Every lender has slightly different criteria for lending to a customer. At the end of the day they do want to lend you money but there is a fine line between deciding whether a customer can repay the loan or not. Depending on the reason you have been refused you can apply to other lenders who may well accept your current circumstances. Although many people prefer payday lenders not brokers, brokers do have the ability to apply to several companies at once on your behalf giving you a better chance of getting accepted for a payday loan.
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