Refusal of payday loan: what to do?

 

A credit refusal is not without solution since there are several remedies to reverse the trend. The reasons which motivate the banks not to grant a payday loan are various but it is necessary to try to know them to be able to rebound.

Compliance with criteria

Compliance with criteria

Credit institutions are uncompromising on the quality of the requests that are presented to them and do not hesitate to give a negative response in the event of an incomplete application. It is therefore imperative to fulfill all the conditions they require and to provide all the supporting documents to hope for a favorable return.

In addition, ask only for the amount you really need since too large a sum may be grounds for refusal because it is considered too risky in the event of a life incident (loss of job, divorce, bereavement, etc.) or ‘unforeseen events (illness, accident, disaster, etc.).

It would be useless to ask for a high loan if you are on a fixed-term or temporary contract since the process will inevitably result in a refusal. Banks rarely accept negotiations about a high debt ratio or insufficient income, but you can still ask for an extension of the term of your payday loan to lower the monthly payments.

Reassure credit organizations

Reassure credit organizations

Over-indebtedness is the most common reason for banks to refuse credit. To convince and reassure them, you must try to reduce your debt ratio to the maximum, at least less than 30%. If unfortunately you are on file, you must settle the situation and request the lifting of the registration before renewing your payday loan request.

You must therefore pay your creditors as quickly as possible. In the case of a bank history, try to provide supporting documents proving that this is a simple incident on the journey and not a regular situation.

Compare offers

Compare offers

Doing a simulation online is a great way to assess the chances of getting credit or not. Thus, you have the possibility of making requests only with the organizations with which your file is most likely to pass. In addition, online comparators will give you a ranking of the best rates so that you can make a wise choice. You can send several requests, which will increase your chances of having your file validated.

It is recommended to appeal to the same bank in the first place in case of refusal because often it is enough to provide other supporting documents or to settle a minor problem to finally obtain an agreement and this also saves you from having to reconstitute the folder. If this attempt fails, you must try your luck with a competing establishment by submitting an improved file and if possible be accompanied by a broker.

The latter will be able to highlight your strengths and find effective solutions to the negative points of your file. He can also advise you on the establishment best suited to your situation. The broker will also be responsible for negotiating the rate of your payday loan to minimize the costs of it.

 

 

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