Payday lenders used to be the ones to go to when all other financial options failed an individual. Consumers would be turned down by banks for loans they wanted and then go to payday lenders and get the same loans without any problem at all. The difference was the credit check, which banks conducted and relied on for determining loan approval and payday lenders did not.

That has started to change recently though, as more payday lenders have to be careful about the kinds of people they approve for loans since the payday loan caps have been implemented. That is not to say that the entire payday loan market has embraced credit checks. That is certainly not accurate. While a few of them have started to use credit checks to determine if they want to take on a borrower, the vast majority of them still rely solely on financial information like income and employment. This is what has always set the payday loan industry apart, and with it, the approval rates have also always been higher than with banks.

That aspect of it has started to change though. Many lenders are now tightening the restrictions on who they approve loans for. They no longer approve just anybody. This mostly has to do with rollovers and loan limits. With the new caps in place, the total cost of a single loan can now no longer be greater than twice the initial cost. That means that lenders make no profit off of people who take a long time to pay back their loans. In fact, they now lose money on people like that, which explains why they are less willing to take risks.

Some consumers have noted that they used to be accepted for some loans. That has changed and they are finding rejection all over the place. They keep being turned down for the same loans they were asking for before on the same income they had before. The industry has shifted, and it has left some out in the cold.

But there are still lenders out there who are accommodating low-income people. They are simply harder to find. Thankfully, there is a recourse for borrowers who need money but who are being turned down right and left. They can use payday loan brokers. These companies work to bring lenders and borrowers together. They can find pairings even when consumers can’t seem to find anyone who will approve their loans.

The borrowers simply ask the brokers to find someone who will give them the loan they want. Then the brokers look through their contacts to find the best match. They send out requests for loans to potentially dozens of different companies. This does not cost the borrower anything, and the broker gets a commission off of the lender. More often than not, the broker can find a loan for the borrower. Those who are having trouble getting their loan applications approved may want to give brokers a shot.