Many people search for high acceptance payday loans, but with the results awash with direct lenders and brokers claiming to offer the ‘highest approval rates’, where do you begin?
High acceptance loans are simply loans that cater for bad credit, the most common type being high acceptance payday loans.
However, you will come across two quite different definitions of ‘high acceptance’ (the one used by direct lenders and the other by credit brokers). Here, we'll explain the difference and how each might impact your chance of approval.
When we refer to high acceptance payday loans from direct lenders, we mean that high approval direct lenders generally accept a greater percentage of applications compared to banks and other mainstream loan providers.
Payday lender scoring criteria is typically less limiting than the banks, enabling people with lower credit scores and some bad credit to be approved for payday loans — not just those with good credit.
In the case of brokers, high acceptance refers to the fact that your application is sent to a number of suitable lenders in one go. In theory, the more lenders that see your application, the better the odds that you will get approved.
It works because every lender has a different policy for credit scoring, so if you don’t meet the criteria of one lender you may still be able to get credit from someone else.
While individual direct lenders might offer higher approval rates than banks, a good broker should be able to deliver better acceptance rates. Simply put, applying with up to 50 targeted lenders through a broker will always be more effective than applying with just one direct lender.
So, if you choose to exclude brokers from your results by using a search term such as "payday lenders, no brokers", you could actually scupper your best chance of approval.
You now know what high acceptance loans are, but it’s equally important to understand what they are not.
No, they are not. While bad credit loans can increase the chance of approval for people with poor credit, acceptance is not guaranteed. To comply with financial regulations, all UK direct lenders must carry out creditworthiness and affordability checks, and not everyone who applies will meet the criteria, so lender approval rates can never be 100 percent.
When a credit broker claims to offer 'almost guaranteed' (92%, 95% or even 97%) accept rates, they are, in actual fact, quoting the percentage of applications accepted by the whole of their buyer panel, not the percentage accepted by lenders. In addition to direct lenders, the buyer panel usually includes brokers and other non-lenders, so the real approval rate (people who get offered a loan) is typically much lower than the headline figures some brokers claim.
In our opinion, any company claiming to offer a ninety-plus approval rates is deliberately misleading applicants about their chances of approval. It’s a sign that the company may be less than reputable — and you may want to think twice before applying with them.
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High acceptance payday loans could be suitable for you if you have poor credit, a limited credit history or your personal circumstances make it harder to get accepted for regular credit products.
Instant Lolly works with an extensive panel of specialised high approval direct lenders, all of whom you can access with one simple application. If you need to arrange a payday loan up to £3,000 but don't fancy the thought of going it alone, then we’d love to help.
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