Most reputable brokers or lenders will run a credit check to evaluate your eligibility when it comes to approving WageDayAdvance loan applications.
The criteria that lenders use will vary from company to company and will depend on the individual circumstances of those applying.
Common credit check agencies include Experian, Callcredit and Equifax, which you may be familiar with when running your own credit check.
Each time a credit check is run using your personal information, a ‘stamp’ is left on your file which will affect all future credit applications. Credit applications can be anything from a credit card to store cards and mortgages as well as bank loans and wagedayadvance loans.
By running a credit check, a lender will be able to see how an individual has performed in terms of meeting repayments on time.
Depending on the credit score, the decision will be made as to whether to grant a loan application.
While the criteria vary from business to business, most scores of 800 and above will see credit being approved and those under 600 indicate a history of poor credit.
How wagedayadvance loans affect your credit score
If you have a bad credit score you should not lose hope, as some brokers will take a calculated risk, so that they can help as many people as possible with their short-term financial difficulties.
Loan Moneytree works with a number of lenders so that we can best match our loan applicants to those that are most likely to yield success.
Lenders understand that times can be difficult and that a helping hand will go a long way in assisting somebody improve their credit score.
The ‘stamp’ on your credit profile will stay on your account for 12 months, so you must be careful not to apply for too many loans and you should leave a gap of at least 3 months if you wish to apply again.
In terms of having a lot of footprints on your account, some lenders will take this into consideration and some may be more lenient, so again, do not lose hope if you have been denied a loan in the past.
Generally, a one-off short-term loan is not going to have a significant impact on your credit score, but applying for a lot may.
Without a doubt, the most important way that you can improve your credit score when it comes to taking out loans is to ensure that all repayments are made on time.
Making regular payments to lenders will improve your credit rating and will instill confidence in future lenders, should you need to apply for credit in the future.
You should only apply for a wagedayadvance loan if you are sure that your finances will accommodate the repayments that you agree to upon your loan acceptance.
If you feel that you are ready to take out a wagedayadvance loan, you can apply to Loan Moneytree today and find out whether or not your loan has been successful in ten minutes.