What are high acceptance payday loans?
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.
High acceptance payday loans direct lenders
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.
High acceptance payday loans brokers
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.
So, where can you actually get the best acceptance rates?
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.