What To Do If You’ve Been Rejected From A Payday Loan
We understand that having your payday loan application rejected isn’t ideal, especially if you’re borrowing for any kind of emergency. However, unfortunately, there isn’t much you can do about it at that exact moment in time. Rejection happens to most people at some point in their financial journey. So, you’re certainly not alone, and there are definitely other options out there that you can take. Whatever your current situation may be, it can easily be changed over time. Thankfully, there are countless ways to boost your chances of being accepted the next time around. It’s easy to get disheartened and stressed when your application is rejected. But, instead of panicking, you should begin planning your next steps. So, to give you a head start, here are some tips and ideas that you could use.
Why Have You Been Rejected?
Identifying your downfall will enable you to progress and grow within your financial position. Knowing where you need to improve will narrow down all of your potential problems letting you focus on just one or a small amount of topics. Common reasons for rejection include:
Not Meeting The Lenders Criteria
Each lender and broker will have an exact set of eligibility criteria that each applicant will have to fit to be considered. Their specific requirements act as a guideline so they know who to lend to and who not to lend too. Therefore, not suiting it will massively decrease your chances of approval. Here at PM Loans, our criteria is as followed:
- Reside in the United Kingdom
- Are employed (in some cases other forms of income may be granted consideration)
- Are aged 18 or over
- Meet the affordability and credit checks that both we & our lenders’ request
Having A Low Credit Score
Thankfully, as a direct lender, we offer loans to those with poor credit scores, giving everybody the opportunity to borrow during financial emergencies. Even if we cannot help you, we will pass your application on to other similar lenders, boosting your chances of acceptance, without any further credit score damage. However, if you haven’t applied using our website, you may struggle to find a lender who operates and helps those who have poorer scores. So, when you are applying in the future, ensuring the lender accepts those with lower credit scores is an important factor.
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What To Do Next:
Once you have been rejected there always seem to be a big list of things you should do next time. However, one aspect which is not always focused on includes what you shouldn’t be doing. There are certain aspects that you should keep away from before creating any further damage.
Applying Too Much
In most cases, once you have been rejected from somewhere, our automatic reaction is to apply elsewhere. But, in this case, it’s the opposite. Applying too much to lenders and brokers can seriously damage your credit score, especially if you’re applying to multiple at one given time. Every time you apply for a new application with a different lender, they will conduct a hard credit check. This is to see whether you are safe to lend to or not. Despite sounding simple, credit checks actually deduct points from your credit score. As a result, it is reduced even further. If you’re wanting to apply elsewhere, but you’re unaware of which lenders would accept your application, we advise visiting and applying through a broker.
Plan Your Improvements
As we mentioned above, after you have been rejected, you will be able to see your weak points. This will allow you to take the time to build your financial stability and progress within your management. Therefore, the next time you come to borrow a payday loan, your chances of acceptance will be higher. However, despite many of them sounding simple, these improvements do not happen overnight. Typically, they could take numerous consecutive months to see any changes. Just like most aspects of your finances, including your budget, improvements take time. So, patience is extremely important and essential throughout the journey.
Weigh Up Your Options
If you’re in desperate need of a payday loan, you’re probably not interested in planning your improvements at this moment in time. So, weighing up your potential answers is the next best step. Opting for a loan shouldn’t always be your default response to needing funds. There are plenty of other ways you can get your hands on what you need without risking further debt. Some of the most common ways include borrowing from those around you or even using your current savings. Considering all of your options will give you a larger range to chose from, allowing you to destress and move forward in the correct way.