No Refusal Payday Loans are also called no denial payday loans. It means these loans provide a 100% guarantee that you will get approval for these loans. Payday loans are small emergency loans that you are required to pay back within a period of 14 days.

“Although payday loans are advertised as loans with no Credit check, it is essential for a lender to carry out a credit check regardless of a loan you want to apply for.” A responsible lender will never do so. When your credit score is bad, you are often tempted to get a loan without a credit check, but it is all but impossible.

Payday loans are disbursed within a few seconds if approved. A lender will sign off on your application after checking your bank statement and credit report.

What are no refusal payday loans?

No refusal payday loans do not exist. No lender can guarantee that you are eligible for these loans without peering at your credit report. The term suggests that a lender will give the green light to your loan application even though you cannot repay the debt on time.

Of course, this is against an ethical lending practice. “It is crucial to check your credit file and income statement to ensure you do not owe more than you can afford.” Experts admonish against such loans as lenders providing them might be predatory. This can be used as bait to lure you into an expensive credit to make hefty money.

However, no refusal payday loans in the UK from direct lenders are not always bad. A couple of lenders are out there that let you borrow money without a credit check. But it does not imply that you will get money even if you cannot repay it.

Such lenders will approve your application based on your repaying capacity. A thorough check of your income and expenses is a must to ensure you will not fall behind on payments. These loans are indeed a scam if a lender does not check your income statement.

Checking your credit score is not enough to gauge your repaying capacity. “It is likely that you do not have enough money to pay off the debt along with your other expenses.” Whether or not a lender checks your credit file, a lender cannot offer an approval guarantee just because they aim to fund unforeseen expenses.

Why do no refusal lenders not exist?

All lenders are obliged to perform ethical lending practices. Therefore, nobody can offer you a no refusal payday loan. Responsible lending practices include affordability checks. Affordability is defined as a state where a borrower is able to make the payment on time despite hardships.

This is a legal requirement by the FCA; no lender can ignore it. A credit check is a must even if you apply for benefit loans today. “When you lose your job or get out of work, you fall back on savings to meet your day-to-day expenses.”

In case of an emergency, you will need to borrow money. As you do not have an income source, it does not mean a lender will not peer at your bank statement. You will have to show proof of a side gig. You cannot get a loan based on your savings.

In the absence of a side gig, your unemployment benefits will alternate with your income. “A lender will look over your outgoings to see if you are left with some money to spare that you can use to pay the debt.” If a lender sees that you are already in financial trouble, no money will be sent to you.

What should you do to get the best acceptance rate?

As you know, getting the nod without a credit check is quite tough, so you should try improving your credit score. “The best way to do up your credit rating is to pay your rent, mobile bills, utility bills, and broadband bills on time.” In addition, you should practise the following:

• Choose a lender that accepts your credit score

First, you need to ensure that you choose a lender that accepts applications with your credit score. This will improve your chances of being accepted. If you apply to a lender that does not lend money to someone with less than a fair credit score, you will certainly be denied, which will further harm your credit score.

• Check your credit report

Before you borrow money, you should check your credit file once so you are sure it does not consist of an error, including identity theft. Report to credit reference agencies in case you find any errors. Your credit score will improve as soon as it is dropped off.

• Compare interest rates

You should compare interest rates to get the most affordable interest rates. “Interest rates vary by lender, so choose the one that provides you with the lowest possible interest rate.” Do not forget to look at the APR, as it includes monthly fees, origination fees, etc.

The final word

No refusal payday loans are not real. No lender can give the guarantee of acceptance without affordability checks.

However, there are a few lenders like 1OneFinance who will be willing to provide you with no refusal payday loans at the most competitive interest rates.

But it does not mean that you can borrow despite a poor financial position. Such lenders run a soft credit check. This allows them to get some basic details from your credit report, but no hard search inquiries leave footprints on your credit report. Your income will be carefully analysed so you are not lent money when you cannot afford it. It is still recommended that you improve your credit score. Compare interest rates and pick a lender that does not have any problems with your current credit rating.

The post No refusal payday loans – what should you know about them? first appeared on 1onefinance.