Ordinarily, being rejected for any
kind of credit or loan would make it exceptionally difficult for you to be
accepted elsewhere. With all applications recorded on your permanent credit
history, lenders will clearly be able to view your previous activity, which can
count against you.
However, payday loans are far from
normal. The first and most important difference is the fact that many lenders
choose not to employ credit checks. Those who do certainly won't be seeking the
same kind of score that a bank or other long-term lender might.
For those who have chosen to do
without this popularly employed risk assessment, the reason is usually one of
simple necessity. Credit checks take time and they also require resources,
which invariably costs money. As such, if it's not entirely necessary, then
there's very little point in employing it. Some form of verification will be
required instead, often in the form of faxed documents or a phone call. This
shouldn't unduly slow down the process and will only be required for first-time
applicants.
Returning to the issue at hand
though; the key benefit of applying with a payday loan company that doesn't use
credit checks is the fact that it won't matter if you're declined. In the event
of a failed application, you can simply try again elsewhere without any
negative repercussions.
In fact this is why brokers have
become so popular within the industry. Ordinarily, if you were to apply for a
loan through multiple lenders simultaneously, it would be extremely difficult
to process, let alone gain acceptance. However, with payday loans you can
simultaneously check as many companies as are available without worrying about
negatively impacting your credit score or, consequently, your ability to get a
loan elsewhere.
This is particularly beneficial for
anybody who has a poor credit rating but earns a decent salary. After all, it
doesn't take much to damage your score, but it can take months, if not years to
remedy any such issues. Therefore even if you have been careful with your cash
in recent times, previous issues may thwart any hopes that you may have at
getting any form of loan.
Outstanding CCJs or bank and credit
card accounts that are in arrears also won't count against you in these
circumstances. However, it is important to stress that some lenders do carry
out checks and you should never take on more debt than you can comfortably
handle. So if you are just trying to get from one month to the next without a
view of how you're going to break the debt cycle, it might be a good idea to
take stock and review your financial position before committing to any form of
additional loan.
The important thing to remember
though is that rejection from one lender shouldn't be viewed as the end of the
world. It's easy to panic and desperately seek alternatives, many of which may
actually cause more harm than good. Even if you're in an extremely tight
situation, take the time to evaluate other payday loan companies who may be
able to help. Whatever you do though, do not look to pay a broker upfront in
the belief that this will speed up the process. This is a highly unethical
practice and you're unlikely to benefit in any way.
So in short, it should be relatively
straightforward to get a payday loan, even if you have been rejected for
another form of credit. Other factors, most notably your salary, will be taken
into consideration with any kind of short-term borrowing, which can effectively
nullify any issues caused by previous rejections. As different companies have
their own unique criteria for accepting applications, you can approach any
number of lenders or brokers to find one that can help.
