It’s always upsetting when your payday loan application gets rejected and you don’t understand why. This can become a huge problem when you are in desperate need of cash at a time of an emergency and you have no money on you, and you can’t go to friends or family for a personal reason. Here are some of the major reasons why loan applications are rejected and they might help you realize what you might need to fix or what extra documentation you may need to provide for your application to be approved.
Reasons for Your Payday Loan Application to Get Rejected By Your Lender
- You Already Have Too Many Existing Payday Loans – All lenders need to determine whether you can afford the loan or not, and if you have already too many existing payday loans that are still pending, you may be rejected for this reason. In your application they will determine whether you have other payday loans that you still haven’t completely repaid yet, whether you’ve taken out more than one payday loan the last 90 days, and whether you’re using this payday loan to repay another loan. If your lender believes that you can still afford the loan even with your existing loans, they might reconsider your case, otherwise you will be rejected.
- You Don’t Have A Job – If you are unemployed, finding a lender will be difficult for you. If you have no income from a permanent employment, it’s difficult to show proof that you can afford to buy a loan. But there are lenders who also cater to unemployed applicants, but they too also have their own criteria for eligibility, depending on your general financial situation.
- You Have Dishonored Payments In Your Bank Account – If your bank account shows the lenders dishonored loan payments, or even if your account has been overdrawn, this is probably why your application for a loan was rejected. When you apply for payday loans online, the lenders will require you to submit your bank statements from the last three months as documentation proof.
- You Get Your Payments In Cash – If you are paid by your job in cash, this makes it difficult to get payday loans approved. Lenders want to verify that you are getting an income on a monthly basis and how much you get is shown to them from your bank statements, but if you are being paid in cash, there is no proof of this information. If you deposit your cash into the account, then your lenders will be able to verify this. Otherwise you will have to find a lender who will be willing to accept your pay slip as a verification that you get paid. If your income cannot be verified, you will be rejected.
- You Have Paid To Gambling Sites – If lenders believe you are a risk to lend to, that’s when they hesitate and back out from giving you a loan. If you have made payments to gambling sites or on online betting sites and they find this on your bank statements, you will be marked as a red flag and high risk, and this is possibly why you are going to get rejected.
- You Don’t Meet The Minimum Requirements To Get Approved – Before applying for payday loans, you should make sure that you meet the minimum requirements before applying. This includes your age, employment, your residency requirements, your income. If you don’t meet these criteria, you will be rejected.
- You’ve Been Filed For Bankruptcy In The Past – If you have been filed for bankruptcy in the past, and your bank statements clearly show this, bankruptcy is a red flag, and lenders will not approve your application at all due to this. Bankruptcy means that the person cannot afford to support themselves and will not be able to pay back the loan either. These situations usually take at least 12 months to fully recover until you can apply again.
- You Don’t Have A Checking Account Or It’s Too New – If your payday loan is rejected, it’s probably due to the fact that you either do not have a checking account, or your checking account is too new. Your checking account needs to be at least 3 months old in order for you to apply for a payday loan, and it should be in a good standing position to get an approval.
- You Earn Less Than The Net Income Requirements – You must meet the net income requirements of the lender. You should be earning at least 1000 pounds per month in order to borrow from your lender; this ensures that you have enough money to pay back the lender in the amount of time given, and that you are paid on a monthly basis.
- If You Are Using A Fake ID Or Invalid Personal Information – If you cannot verify your identity and are using a fake identity, this will be marked as a red flag in the system and you will be rejected instantly. If you cannot show any identification of who you are, no lenders will be willing to help you out as they won’t know you are.
So, here are some of the reasons why people are rejected when they apply for payday loans. It’s better to check the requirements before you actually send in your application. If you don’t meet any of these requirements, you should know that you will automatically be marked as a red flag and you will be rejected for a payday loan from any lender. If you do happen to apply for a payday loan and you think you meet all the requirements, but you are still rejected, then you should definitely ask for a reasonable explanation as to why you were rejected and how you can get your payday loan.
You can visit this site if you are looking for lenders for payday loans. https://paydayloans.quiddicompare.co.uk/