Bad Credit Payday Loans: What If You're Rejected?
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Bad credit payday loans are a source to consider for those who have had credit issues in the past. While it was true that payday loans were previously quite easy to get - even for those with a poor credit history - this has now changed. It's, of course, not to make it harder for people to borrow when they're in financial difficulty; but rather to better protect against people ending up in a cycle of debt of payday loans UK. Still, it may affect a number of people in desperate need of cash. So what do you do if you have bad credit and get declined for a loan?
Why Companies Avoid Bad Credit Instant Payday Loans
First, it's important to understand why lenders may avoid bad credit instant payday loans. There are a number of reasons behind this. For many lenders, it can be to do with any sort of poor credit history that you may have. Previously, as stated, payday loans bad credit UK wide were very common. This was somewhat curtailed when, in January 2011, the European Consumer Credit Directive (ECCD) issued requirements for lenders to perform certain creditworthiness checks. However, this wasn't very clear and, in 2014, the Financial Conduct Authority (FCA) took over regulation of the UK payday loan market. When the new legislation came into force in April 2014, this left a lot of payday lenders having to change their ways. These changes were widely welcomed by ethical lenders and those outside the industry. However, for some people, it has meant that it's now left them, due to lenders changing criteria for bad credit payday loans, unable to pass a number of checks due to their poor credit history. Many companies will run your details through automated algorithms called ˜scorecards" that will take data that relates to your application, and from credit background checks, to determine if you are eligable for a loan. This rather creates a situation where you either fit the profile of borrowers they like or you don't. There's no real human element at play here. A machine, essentially, determines whether you get the loan or not.
So How Do You Get A Payday Loan With Bad Credit?
So, with all of this in mind, how do you get a payday loan with bad credit then? Thankfully, there are lenders out there who do things differently. Some lenders will not place so much emphasis on your very old credit history (credit files normally go back 6 years from when the loan was either repaid or defaulted on) and are more concerned with how you are managing your finances today - they won't wholey focus on bad credit payday loans or other borrowing you've had in the distant past. So, if you're in employment, there's a chance you'll be able to find a lender who will suit you. One such lender is True Blue Loans. Instead of focusing on your past history over the whole 6 years, at True Blue Loans we are more concerned with how you're coping with your finances more recently. That said, there are certain things that we are unable to 'forgive' such as CCJ or Bankruptcy, and if we cannot find any 'good' recent borrowing history, we will have to fall back to your older borrowing. We don't use scorecards like some major lenders. We put your application through our "decision engine" software which outlines whether you may fit our criteria. From that point on, if accepted, you are put onto an underwriter who will personally consider your details - so a machine doesn't make the final decision, a person does. But what if you're rejected by the decision engine or by the underwriter? With your consent, we'll pass you on, free of charge, to a firm who have a really clever computer system which can help you find an applicable lender. We also make sure that anyone recommended to you as a lender will comply with all UK laws and regulations.
Worried Over Your Bad Credit Payday Loans? Contact True Blue Loans Today!
With that in mind, there's no reason not apply - even if you've had bad credit payday loans previously. Even if we can't help you, we can point you in the direction of another payday loans UK company who may be more suited to your circumstances. We care about, and our committed to, those who come our way. For more information, and to apply, please visit https://trueblueloans.co.uk. Want to talk to someone before you make a decision? Then call us at our Skype number: 01284 724651 or email us at [email protected] to find out if we can help you get out of your financial crisis.