Most people who submit requests or applications for payday loans are approved during the day and they receive the amounts they loaned during the next day. This is because lenders demand only the minimum requirements. There are, however, few instances when the loan application is denied. Here are ten reasons why a person's loan application is not approved.
Applications for a payday loan are usually approved in a very speedy manner, sometimes within a few hours or even minutes. Funds are usually available that same day as well.
The reason for such fast service is most lending companies only require you to provide the minimum such as residence, employment and banking information.
On average, most online lenders have a four out of five approval rate. However, there may be few instances when the online application is denied.
If your loan was not approved, here are the top ten reasons why.
1. You are not employed. The payday loan is a loan against your future wages. If you are not employed you have no payday and no way to repay the loan.
2. Your monthly net income doesn't meet the lenders minimum requirements. Most lenders require you to net a minimum of 00 a month. If you don't make at least this minimum lenders will assume you will have difficulty in repaying the loan.
3. You only receive wages once a month. Payday loans are a short term solution with payments usually required within an 18 day time frame. If you only get paid once a month most lenders will not approve you. There are exceptions out there of course.
4. You filed bankruptcy in the last year. Payday loan lenders don't check your credit but they would be naturally be concerned about your ability to repay your loan. When you file bankruptcy you are declaring yourself unable to support yourself financially. Most lenders feel one year is not enough time to recover financially.
5. Your identity cannot be easily confirmed. If you decide to use false or inaccurate information on your application or your contact information is no good, lenders are not going to consider loaning you money.
6. You have not been employed for the minimum number of months. Most lenders want you to be at the same job for a minimum of 6 months. This shows some stability in the eyes of the lender. If you've only been on your job 3-5 months you're going to have to search harder but there are lenders with a 3 month minimum requirement.
Your checking account information is not easily verified. You must provide accurate verifiable banking information including bank name, address, phone number, account number, routing number and length of time you have had the open account. This information will be checked out.
8. Your bank account is too new. Most lenders prefer your account to be at least 3-6 months old. Again, this shows stability and that you do have some control with your money.
9. You have a lot of overdraft fees and/or NSF fees attached to your checking account. Lenders are on alert to these issues and they say to them that you are not a dependable loan prospect.
10. You have unpaid payday loans or returned checks. Similar to the previous situation, these outstanding loans or habitual bad check writing instances will urge lenders to deny the application.
Keep in mind these details when applying for your payday loan. Also make sure you apply well before normal banking hours as your information will be unable to be verified after hours and this may cause your funds to be held till the next business day.
If your loan request is denied but not due to any of the ten reasons above, you should contact the payday lender and ask for details.