Why Can You Be Denied Online Payday Loans?
People who want to solve their unexpected expenses such as medical bills or car repairs use online payday loans. These loans are quickly processed so that you can receive cash into your checking account the next business day. However, qualifying for a payday loan depends on lenders and loan criteria. You can be denied payday loans for various reasons even though you met the minimum requirements.
Here are some of the reasons why you might be denied an online payday loan:
You Didn’t Meet the Minimum Requirements
You have to meet the minimum requirements set by the lenders according to their state regulations to be approved for a payday loan. For example, you must be 18 years to qualify for a payday loan.
Overdrafts on Your Bank Account
You must submit a copy of your recent bank account statement to your lender. They will go through your bank statement and can reject your loan request if they find there are overdrafts on your account.
You Don’t Have a Stable Income
A steady source of income is essential to qualify for a payday loan. If you have only unemployment or welfare payments, lenders can reject your loan request, as they cannot be considered a stable source of income.
You Have Existing Payday Loans
Lenders can reject your payday loan request if you:
- Have taken out more than one payday loans in the past three months
- Are using this payday loan to pay off your existing payday loan
- Are currently repaying your existing payday loan
You Can’t Verify Your Income
As a borrower, you should prove that you will get paid on a regular basis. Otherwise, you might be denied payday loans.
Poor Credit Scores
Some of the lenders will run a credit check before approving your payday loan. If they find that you have a poor credit score, they will reject your loan request. In that case, you can request for bad credit payday loans.
Incorrect Information on Your Loan Request Form
The details you have provided in your loan request form are important for your loan approval. Make sure whatever you have entered in your request form is accurate. Lenders will not approve your loan if your details are found to be incorrect or fake.
You Have a Bankruptcy
A bankruptcy on your record will lower your chances of being qualified for a payday loan because bankruptcy will stay on your credit report for 10 years and impact your repayment ability.
How to Get Approved for an Online Payday Loan
You can talk to your payday lender and ask why your loan request is not approved. If you know the reasons, you can work on them to increase your chances of being qualified for a payday loan.
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