How to Avoid Discretional Rejection from Short Term Loan Lenders

Created: 2017-08-07 00:00:00

How to Avoid Discretional Rejection from Short Term Loan Lenders

Every lender has the discretion to approve or reject a particular loan application. A lender may choose to offer a reason or may not provide any information pertaining to the rejection. Approvals don't need any explanation. A lender considers many aspects of an application and decides a case primarily on merit. However, there can be some other factors influencing a decision. Here is a brief guide to help you avoid discretional reject from short term loan lenders.

Do not ask for a loan amount that is too high given your income, the rate of interest and chosen term. Understand your income and calculate the disposable income as in the loan amount you seek. Do the math to know for certain if you can conveniently repay a loan given its monthly installment. You can be sure that a lender will do this math. If you can afford to repay fifty quid a month and your installment comes out to be a hundred quid or more, then you can be almost sure of getting your application rejected.

All other aspects of your application may be deemed acceptable according to the short term loan eligibility as laid out by the lender but the inability to pay the installment according to your disposable income will lead to rejection. You can go for a longer term, opt for a smaller loan amount or you can provide sources of additional income that will obviously increase your disposable income.

Take these steps proactively so you don't give the lender a chance to reject your application. Remember, when you get rejected and your profile gets flagged, reviewing an application or making a fresh application may not be of any help. You need to be impeccable in your first approach and be on the right side of discretionary evaluations of lenders.

Warning: Late repayments can cause you serious money problems. For help, go to