Reasons Why You Keep Getting Turned Down For Loans

Once a loan application for a loan is completed to borrow money for a specific purpose, the potential borrower eagerly awaits the result of the application so that he or she may receive the funds needed to achieve his ambitions, whether for business, car purchase, or holiday.

A declined application potentially means that a life goal is left unfulfilled. Lenders refuse loans based on a person’s credit-worthiness and loan default risk. If you’re refused a loan that you need in emergency because your credit history isn’t the best, it may be worth looking for bad credit loans direct lenders, as they may be more willing to approve your application. The criteria used to determine credit-worthiness and the ability to repay loans may differ between lenders and creditors.

Those that have experienced a loan application decline may register with a credit checking agency to obtain their personal credit score and a credit report. A credit report provides the information needed to understand how the credit score contributed to the loan refusal.

Common reasons people are turned down for loans include:

  • Not being registered on the electoral roll for voting
  • Being a victim of a credit fraud and identity theft
  • Defaulting on loans historically
  • Having County Court Judgments (CCJs)
  • A lack of credit history or interest payments
  • Opening too many accounts and leaving some inactive
  • Applying for too many payday loans in a short space of time

Some people with suitable credit scores may be declined loans.  When this happens, it is important to understand why, including the creditor’s assessment criteria, so that the underlying cause may be addressed. Too many loan rejections can also be detrimental to future loan prospects.

Lending options – Great advice for those looking for a loan

Creditors lend individuals money to meet personal and business expenses.  By providing lending options, lenders give individuals financial flexibility to achieve their ambitions in life.

People borrow money for home improvements, car or computer purchases, or to fund a holiday.  Providers tailor loans to meet individual priorities.  Getting the right loan for a desired purpose can save money in the long run.

Lending products, such as short term loans, enable individuals to develop interests and meet their financial goals.  Lending options include providing consumers or potential borrowers with choices in loans, such as suitable repayment terms, conditions, and costs.

When looking for a short term loan, it is best to compare lending options with different providers.  Check out the type of fees involved, such as early repayment charges, and the interest rates.

Short term loans in the UK vary with loan type and may reward credit-worthiness.  Obtaining a personal credit score and managing the score to increase its value in credit-worthiness may improve lending terms. Individuals with poor credit ratings might be declined loans on application.

Those lacking time to research lending options might benefit from independent advice or online loan comparisons to help choose routes of loan applications that give the best value.

A suitable loan is one that meets the purpose for which the money is borrowed and does not thwart the ability to meet the loan repayments.  The best short term loan lenders will be supportive to borrowers throughout the loan period.

Getting Free Stuff

Working for PiggyBank as a startup venture there are a few things that just have to be accepted. Some things are good, some, not so much. You have to accept that cash flow, especially at the beginning, is a little tight. This means that you need to have many hats so anything you can get for free is viewed as a massive win.

As work commenced here at PiggyBank HQ we quickly started to need to integrate third party APIs. Off we went to the suppliers we used in the past only to realize that most did not present the prices up front. This annoys us because we believe that friendly finance should not hide the costs.

A quick web search later lead us to companies who not only provided great APIs and transparent pricing but also allowed us to start testing the water with free account credits. While this was not a large number it did allow us to get all the testing and integration done without spending a penny or having to phone for prices.

So in the interest of sharing and the hope that others on their startup journey stumble across this here are a few of those companies:

PostcodeAnywhere http://www.postcodeanywhere.co.uk/
We use their address lookup services but dig around and you will find a wealth of other services centred on location data.

OneSixty http://onesixty.co.uk/
OneSixty provide SMS and MMS fulfillment. Ask nicely and they will give you some test credits

MailJet http://www.mailjet.com/
Gorgeous website, SMTP Relay service, awesome reporting, a great API, transparent pricing and 6000 email a month for free entry account.

MailChimp http://mailchimp.com/
Marketing email fulfillment, basic account serves up 12k email a month

It is also worth mentioning that if you look hard enough you can find free stuff every where. At PiggyBank HQ, we use Microsoft technology to build our systems. Microsoft provide great software development starter kits. Their express range, while limited, will get you off the ground for free and when you’re ready to move to the next level you can use trial Visual Studio and SQL server for 90 and 180 days respectively. So three months into your build without spending anything.

There are also schemes in action like Microsoft BizSpark and WebsiteSpark for startups where you can get the tools for your trade for up to 3 years (with some conditions).

Go get that free stuff and happy coding!

How to borrow money responsibly

While lenders have a legal and ethical responsibility in lending money to individuals, each person who makes the decision to borrow money is expected to do so responsibly.  Comparing what lenders have to offer helps borrowers to get the best value for their money.

Learning about short term loans and control of personal spending is a good starting point.  Consumers learn to borrow money responsibly by prioritising the purpose of the loan, whether for home or business expense; understanding the types of loans available and responsible lending practices; comparing lending terms, conditions and costs; and learning what it means to be responsible when taking out a loan.

Lenders assist financial borrowers by screening their personal financial health for suitable short term lending, and by providing information about taking out and repaying loans.  Creditors look at each person’s financial strength to determine if they will be able to meet the loan requirements.

The credit score is an indicator of an individual’s ability to repay a loan.  Gaining a credit report from a credit checking agency helps potential borrowers understand their credit score and how to manage their credit-worthiness and their ability to repay debts, such as a short term loan.

Responsible lenders turn individuals down for loans when their credit score reflects an inability to maintain a level of loan repayment.  Being responsible in managing debts means money repayments need to be prioritised and made on time to prevent default, interest accumulation, and runaway debt increases.

Week one on the start up rollercoaster

Week one (or week three since I left the safety net of working for someone else, or week 27 from when I first came up with the concept of Piggy…) of the start up journey has been and gone.

It’s been a fantastic week all in all. Great to have Chris and Adam join me at PiggyBank HQ, but still four working days until Darren comes to join the team. The office is looking fantastic, but still not totally finished, and Piggy seems to be coming along very nicely. Actually, we seem to be really cooking on gas!

My first week of ‘being’ a CEO has been interesting. It really is amazing how many different ‘hats’ you have to have in a start up. From being the CEO, to being a marketer, to being an assistant designer, to being a removal man, to being a cleaner, I have done it all this week, and I wouldn’t have it any other away.

To give an idea of the polar opposites of this week, I spent a couple of hours on Wednesday talking high level finances and plans for the future with one of our directors. Later that day, once the team had left, I hoovered the floor, cleaned the kitchen and bleached the toilets. At the moment, we need to watch expenditure, so the cleaning falls to me. But it’s amazing how many great ideas and solutions to problems I had when I was cleaning. It really shows that if you step out of your comfort zone, think about something else, a solution will always come.

Building Our Team of Superstars

From the moment I knew Piggy Bank was a reality, there were only two people that I wanted to lead our technological software development, Darren and Adam.

I’d known Adam and Darren for nearly two years. We’d met at the Richmond Group and got on very well on a personal level, and had had some great results on projects we had worked together on.

The had both been at RG for a long time, and although were very happy with their current jobs, and were ready to take the step up to Technically and Architecturally leading a business.

They great thing from my perspective was that the both just got PiggyBank, could see the massive potential and wanted to be on the start up rollercoaster with me.

So that was the tech sorted, now we just needed a like-minded, focused and creative designer and front-end programmer. That is where Chris came in.

Chris and Adam had been friends for years, but I’d only met him very briefly at Adam’s wedding. In one of the many late night strategic sessions between Darren, Adam and Myself, we got onto the topic of designer, and Adam put Chris’ name forward. I had nothing to lose, so I decided to meet and speak with Chris. Three weeks later he was moving down from Nottingham to join the team.

This start up journey really is a rollercoaster!

For competitive short term loans and Paydays Loans talk to use today.

The Beauty of Focus

What do I mean by the beauty of focus? To explain this I will have to give you a little back story. Whilst working for previous companies, both in short term finance and other disciplines, I found that there was little structure given to the daily process of writing software. Days quickly descend into meetings, planning sessions or just general distraction.

It should never be underestimated the amount of time that is wasted by task switching, especially for a software engineer. It takes time to find the flow. You cannot write great software without committing a decent chunk of time to the thought and execution of the process. I also think this is why developers are generally best late at night. Others may disagree but some of the best engineers I have worked with produce the best stuff after midnight.

In order to remedy this, and what I have tried to do here at PiggyBank is to set aside a block of time during the day to find the fabled zen state of pure focus, block off time and learn to say no!

This zen state does not come easily and requires a little prep and some planning with your team. For PiggyBank it involves getting the meetings organised into the right slots. Briefings and catch ups are best suited to the morning, discussion, planning and meetings with other parties (customers or suppliers for example) are best suited to the afternoon. Block out time from eleven to two for the core part of your job, writing software.

So what to do during this golden time? Get yourself a cuppa, and do what suits you to get into the head space to crack on with your problem solving. For me its sorting out the right track list and getting stuck in.

If you are lucky enough to be in a company where you can do this, trust me, you will be more productive as a result, so too will your colleges. Give it a go and be strict with yourself, once you are in your coding mindset let nothing (or at least as little as possible) break you away.

Happy Coding!

How did I get here?

I have always had an entrepreneurial mindset, from a very young age. It seems to run in the family. My Grandfathers, my Gran and my Uncle have all owned and ran successful businesses. So I guess you could say business is in our blood.

My stepfather Julian, one of the Directors of DJS (UK) Limited, is a very successful entrepreneur in the world of cars, property and finance, and has always been a great sounding board for my career decisions and business ideas that I had.

I’d also been lucky enough to work with, in my opinion, two of the best and most inspiring young entrepreneurs in the UK right now, James Benamor and Patrick Knight.

I’d worked with James at The Richmond Group, a sub prime finance company based in Bournemouth. James had founded RG in 1999 and the business was now worth over £250 million. With countless young entrepreneurial awards under his belt, it was safe to say that James really knew his stuff. James was very single minded, focused and full of self-belief, which are good characteristics for an entrepreneur I think.

The concept of ‘ownership’ that was really pushed at RG really suited my working style, and working closely with James on a project to create free traffic for the Debt Management product taught me a lot about the characteristics and psychology of running a successful business. This was also my first experience of the financial world. Although RG’s products were very successful, I would never have used one, I was not the right audience. My mantra from my PR days is ‘live your brand’. If you can’t live your brand and you would not use the product yourself, how can you effectively market it?

I’d worked with Patrick at Pouncer Media, focusing on the TablePouncer and Real Time Deals consumer products. Patrick had an incredible track record of success through technical innovation. From ringtones to inventing a new online advertising format, the incredible Inskin product, to an automated system to fulfill online holiday rentals, Patrick had done it all. And done it all well. Patrick’s mentality was very different to James. Patrick was an eccentric creative genius. Give Patrick a problem and he would solve it with a nifty piece of technical wizardry. Sometimes Patrick’s creativity would spill over into strange little pranks, but this was how he realized the pressure of being the ‘boss’.

The culmination of lessons, advice and observations I’d taken from Julian, James and Patrick made me know that I had to follow my dream and set up my own business.

So when I went to Julian with the idea for PiggyBank and he not only said that he loved the idea but wanted to be involved with the product, I knew it was time to follow my dream and begin my start up journey. I’d gone to him with 100s of my ideas for businesses in the past, and although he’d always been positive and supportive, this was the first time he’d ever sat up and said ‘yes’.

We then met with Simon, another successful, like-minded entrepreneur, and everything seemed to fall into place from there. Simon loved the PiggyBank idea and he, Julian and myself bounced off one another almost instantly.

We had our amazing idea and we had our Board.

We now needed to find our Operational team.

In the beginning… PiggyBank Start up Journey

So after months and months of planning, scoping and funding, I was stood in my own office, with nothing for company except a blank whiteboard. I was there, the start of my very own start up journey.

My vision and my dream were finally becoming a reality, and my emotions were everywhere. I had chosen to walk away from a great job, working with a very inspiring group of people, on a very exciting product. My career and my future would metaphorically live and die by this decision.

They say it’s lonely at the top, but I felt so far from the top. I was on top of the world that I was about to make PiggyBank a reality, but felt like a climber looking up at Everest; excited and buzzing, but with an enormous amount of intrepidation about the challenge that lay ahead.

I’d been planning this for months. I had my idea, I had my Directorial team, I had my Operational team, I had my offices. Now I just needed to make the first operational step to make my dream a reality. I had one single thought, that if I followed, PiggyBank could only be successful- focus on the user and all else would follow.

This blog will detail The PiggyBank start up journey, our learning’s and articles relating to the product and the finance industry.