Why Can't I Get a Loan?
When you are refused a loan, the company may inform you of the reasons within seven days. However, some companies may not, and you will be left wondering why. Some of the reasons for credit denial could be:
Poor Credit Score
UK direct lenders always check your credit score before approving any loan. A low credit rating is a red flag to the lenders. Therefore, it is good to know your credit score, and you can check it online for free through sites like Experian and ClearScore. A 670+ score is considered a good rating. However, you can access loans for bad credit even with your poor credit score – note that you may pay a higher interest.
Your Income Is Too Low
Before the lender approves any loan, they try to ensure that you can pay back the total amount borrowed. One way to do this is by checking your income and expenditure. Therefore, if your income is low and you apply for a large amount, the lender may turn you down. The best thing is to apply for a loan within your income and expenditure.
Too Many Outstanding Loans
Potential lenders usually check the amount of existing debt a borrower has. If the borrower has many existing loans or their credit cards are maxed out, the lenders may hesitate to extend more loans. It is always advisable to pay off these loans before starting to apply for new ones. Therefore, if you have a pressing issue that needs immediate funding, you can seek help from friends and family.
Non-existent Credit History
Having no credit history may prevent you from getting approved for loans by lenders. It may result from having no credit cards or someone who has not borrowed money anywhere before. As a result, their credit past contains very little information. Young people usually fall into this category.
Making Too Many Applications
Making too many loan applications can work against you. It paints a bad image to the lenders, and they will hesitate to extend loans to you. Every application registers a search marker to your credit file, and other enders can see it. Once a lender turns you down, you can search for lenders with "hard search" functionality since it does not affect your credit score, and other lenders cannot see it.
What to Do If My Loan Applications Have Been Refused Everywhere in the UK?
Lenders may fail to approve you for loans for various reasons, and it can cause a major blow to your plans and your ego. But rejection doesn't have to be the end of the story. It can often just mean that you need to go back to the drawing board and develop a better strategy for getting approved. Here are some things you can do:
Fix Any Errors On Your Credit Reports
If the lender informs you that they refused you a loan because of your poor credit rating, you need to know the credit agency they used. You can then approach the agency and let them know that you want a copy of your file. If there is an error in the file, you can request the agency to change it.
The stipulated time for fixing such errors is usually 28 days, during which the details in your file will be marked as disputed. Once they fix the error, you can apply for a new loan.
Pay Down Debt; Especially Revolving Debt Like Credit Cards
Existing debts may be a hindrance when you apply for loans. Therefore, you must pay the debts. If you have too much credit card debt, work on a plan to pay it fully. These payments help to increase your credit score, and you may soon qualify for a loan with a fair interest rate.
Find Other Means to Get Money
After refusal, many people make the mistake of applying for more loans from other companies. The multiple applications only work against you in your credit report and further lower your chances of getting a loan. Therefore, it is advisable to raise money through other means like selling old items or seeking help from trustworthy family members and friends.
Get Loans for Bad Credit
If your loan applications get rejected because of bad credit, you can look for loans for a bad credit score. It is always advisable to conduct proper research before applying for these kinds of loans because different companies have their methods of determining the customer they accept. Also, these loans attract higher interest due to the high Annual Percentage Rate (APR).
How Long Do I Need to Wait to Re-apply for a Loan If I Was Refused?
Getting refused a loan can be an unsettling experience. But the good news is, you don't need to wait too long to try again.
However, it's worth taking the time to figure out why you were refused before applying again. That way, you know what to do differently or not do to increase your chances of being accepted the second time around.
The good thing is that many lenders are willing to work with people with low credit scores. You can apply for a relatively low amount (£100 - £2500) from these lenders, and there are high chances that your application will be accepted.
How much would you like?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
How to Find No Refusal Payday Loans Online
Many unscrupulous lenders have joined the industry because of the popularity of no refusal payday loans resulting from their convenience. They charge exorbitant rates whenever someone cannot afford to pay back on time.
That is why we at FastPaydayLoans are here to connect you with legitimate UK lenders. All the lenders we partner with are FCA regulated, and we can help you get the best deal for your situation.
| Why Trust FastPaydayLoans? | ||
|---|---|---|
| How much can I take out? | £100-£5000 | No obligation quotes |
| Representative APR | 49.7%(variable) | Competitive rates |
| Will bad credit be accepted? | Yes | Lenient requirements |
| What are the repayment periods? | 1-36 months | Flexible loan term options |
| How can I apply? | Apply online | 24/7 available |
Should I Get a No Refusal Payday Loan From UK Direct Lenders or Brokers?
As a consumer, you have the right to choose whether you want to work with a direct lender or a loan broker when you need a no refusal payday loan. Direct lenders use their own money to provide loans, which may make it easier for you to secure a loan. You'll also work directly with the lender, which makes it easier to communicate and resolve any issues that come up.
The problem is that there are many UK direct payday loans lenders out there, and scammers have infiltrated the industry. It is easy to fall victim to a scam. Therefore, you may want to work with a broker like FastPaydayLoans. The broker may present you with advantages like;
Avoid the Hassle of Shopping Around
At FastPaydayLoans, we have partnered with many lenders and can identify the ideal lender to meet your needs. Therefore, we help you avoid the stress and hassle of shopping for lenders with the best deals.
Save Time
Once you submit your information on our platform, we take it upon ourselves to help you find a lender. We recommend you to the lenders with the best deals. This saves you time because it is quicker than applying to multiple lenders.
Get the Best Deals
A broker works to ensure that the borrower gets the best deal for their needs. At FastPaydayLoans, we compare the rates provided by different lenders before matching you to the best deal. This ensures that the borrower does not lose a lot of money in interest.
With these advantages, working with a broker may be the best option.
