Applying for low apr loans and getting it in this difficult economic situation is not an easy thing.  Banks are simply very cautious and always looking for an excuse to say no and refuse you the loan facility. The implication is that there are lot of loan application rejections. There are more loan applcation rejections in the last year than in year 2004 to 2006 put together!

When you apply for loan or credit cards, the bank check with credit reference agencies. The report from the credit agency, your income and other outgoings help the bank in checking whether or not you are in a position to repay the loan or manage the credit card properly. The report from the credit refence agency is the key factor, if you fail on that, the bank simply say no. Hence in loan application, your credit history is the significant factor.

How credit reference agencies compile their report on you? Every finacial services in the country report your account activities to the these agencies every month. They report on the status of your account. If you make a regular payments, you get gree lights. If you missed payments  you get amber. Once you missed more than three payments, it is red light. Obviouly, the more green light you get the better for getting a favourable decision on your credit application.The credit reference agencies comply this report on your all your account activities. They also collect the report of all your loan applications. These information is used by the bank to decide on your loan application.

Because of the economy, many people are losing their jobs. There are lot of people in temporary jobs. People are moving from jobs to jobs, often with big gaps in between. Your regular payments from banks like standing order and direct debits for your utilities, your mobile phone bills, rent and mortgages, these bills are expected to leave your account on specific days of the month. If you do not have enough to cover these outgoings, this is classed as missed payment. This information is passed to credit reference agencies and the information is used to make credit decision against you in the future.

If you have lot of missed payments in the last few months. You are classed as having bad credit. Banks are most likely to reject any loan application request from you.
You might have already applied for loan at few finacial organisations and refused. Dont give up hope. There are other avenue and other lenders who specialise in giving loans to people with bad credits. A quick look around this website should reveal providers who specialise on loans for bad credit or payday loans for bad credit. When you are dealing with bad credit loan providers, you need to be careful as they often charge a very high apr on the loans. This is why you need to make sure you maintain a very good credit history so you can always get cheap loans or rather low apr loans.