By Amber Kevin
If you have applied for credit or a loan and been knocked back, it can feel like you are completely lost and alone. In the past it was easy for us to rock up to our local high street bank, to speak to the manager we knew by name, and who knew us, and ask for an extension of an overdraft, or for a small loan to tide things over. Things have changed though, and it is now harder than ever to be accepted for a loan application through a traditional high street lending stream. Instead, we must look for those responsible and reputable payday loan lenders; those lenders who have the means to help those who have been rejected elsewhere.
Why should you be punished forever due to a poor credit score? Especially if you can demonstrate right now that you have the employment, the means, and the desire, to pay back a loan in full and on time.
In the first instance of being rejected there are a few steps you can take to improve your situation and to help you be accepted in the future when making another claim for credit or a financial service.
Don’t keep applying for credit when you have been rejected. This is the right time to stop and to take stock of your situation. Every time that you apply for credit and you are rejected it placed a negative mark on your credit file. It is important to understand your credit score and you can gain a free copy of your credit score each month from one of the credit agencies. Ensure that your credit file only has accurate information relating to you (especially your address), and look at how you can improve your credit score over time.
Work out how to pay off your existing debts, and how you can do that without stretching yourself further and potentially getting into further trouble. It might be worth taking out a consolidating loan (if this is achievable), but you should always check an application without it affecting your credit score wherever possible, instead of a hard application. Before committing to any form of new credit it is important that you understand the responsibilities that you have in paying back the loan, and how you can be better prepared than when you were last rejected.
Alternatively, you could look at other viable options to help you out. With a responsible payday loan lender, you can find that an adverse credit loan is available to you. As long as you can prove that you have the means with which to pay back the loan within an agreed period of time, and that you understand that there will be added interest on top of your initial loan sum, you should be able to acquire a loan that helps you out of a sticky situation in the short-term. Always be aware that there is help out there, and that not all of the payday loan sector is the bad guy, there are some good apples working in the sector now too.
