– Top payday lenders reveal the secrets as to why they decline your payday loan applications.
– Learn how to have a better chance at getting your payday loan application approved.
– Find out why it is important to your payday loan lender that you fix these issues before re-applying.
When you are running low on cash but the salary date is still some days away, a pay day loan loan is often one of the fastest ways to meet your cash requirement. But even after filling out payday application form and completing painful paper-work, has the lending company rejected your loan application?
In case of a payday loan, the loan approval is usually a simple and straight-forward process for the most part, and you should expect to receive the cash within 24 hours (or even the same business day, if you are lucky). This is generally because most of these payday lenders do not require much personal information and they do not not run credit score checks before issuing a payday loan. However, there occasions when payday loan applications can actually be denied.
Most Common Reasons Why Your PayDay Loan Is Denied/Rejected
1) You are Unemployed! If you don’t have what lenders call “a regular and steady source of income”, many lenders may reject your payday loan application on the grounds of your questionable ability to repay the loan. While there are lenders like checkintocash.com who consider unemployed applicants, most other lenders may actually deny you the loan unless you can provide provide valid proof of employment.
2) You get your income/salary in Cash! While being on a salary is better than being unemployed, being paid in cash can sometimes make it difficult for your payday loan to be approved. Lenders like to be able to verify your source of income through your bank statements. If you don’t usually deposit the salary/income you receive into your bank account each pay cycle, then the lenders won’t be able to verify it and this is a likely reason why your application was rejected.
3) You’ve used up several payday loans already in the past! When a payday loan lending company is processing your loan application, they’ll be able to see your financial history and any previous pay day loan applications you’ve submitted. If they notice that you’ve applied for multiple payday loans from various lenders, then they may reject your application.
4) You have a bankruptcy in recent past! Payday Lenders use your current and recent financial situations to determine the risk in lending cash to you. If you have a recent bankruptcy on your record, you may be flagged as high risk applicant and hence rejected.
5) You’re A Gambler! This should be a no-brainer but, lenders will decline a payday loan application when they find out that the applicant is a habitual gambler. Spending money on activities like casinos and gambling is seen by lenders as a highly irresponsible thing to do with your money. If they find in your bank statements that you’ve made payments to gambling sites for example, then they won’t approve you.
Now that you know the most common reasons why people are denied payday loans, what was the reason that you think why your loan application was rejected?