Payday loans are known to be the most easily accessible loans but that doesn’t mean that every application is given a green signal. They may be short-term loans and a way to get a small amount of cash for a few days but still, lenders like checkintocash.com do look into a few factors before approving a payday loan application request.
One of the major reasons why people apply for payday leans is the fact that they are hardly rejected, but this does not mean you can take payday loans for granted.
They may be advertised as the easiest loans in the world, but you do need to meet a certain criteria to be eligible for such a loan.
Payday loans can get rejected for many reasons. In some cases, a lender may tell you why your application was rejected, but in some cases they may not give you any explanation at all.
Such things can be really irritating but there is no need to worry because we have covered four of the most common reasons why payday loan applications get rejected.
Let’s have a look:
This one is pretty much obvious. The reason that a lender will provide you with a payday loan is so that you can pay it back within two weeks with your next paycheck. However, if you are unemployed, then your application would get rejected simply because of the doubt regarding your financial health.
How are you going to pay back the loan if you do not have the money today and no job either? The question is legit.
A jobless person is a risky person for lenders and they are more likely to turn down such applications without hesitation.
2. Poor Credit Score
Loans are all about trusting the borrower. We know that credit score is the way to figure out how a person is doing financially which is why lenders look into all the possibilities to determine if the borrower will pay back in time or not.
For this, they look into the credit score of the person just to be sure if they’d be able to pay back or not.
If you have a poor credit score then your loan application may get rejected. While payday lenders do not always look at the credit score, but they may do so in some cases.
3. Too Many Payday Loans Taken Already
A payday loan is like any other loan. You apply for it and submit the required documents that are checked by the lender.
Things may turn south if you have already applied for several payday loans from various lenders. This raises suspicion and the lender might reject the application just to be on the safe side.
Sometimes, people apply for new payday loans to pay back previous payday loans. This labels them as risky customers, and most lenders would like to stay away from such borrowers.
Make sure you haven’t taken a payday loan at least for the past 3 months to have one approved without any trouble.
4. You’re Paid In Paper Money
It can be a problem to get a payday loan approved if you have no evidence to show your income. This is applicable when you are paid in cash and have no bank statement records to show in your application.
Normally, students and people from foreign countries receive income in cash, which is why they have higher chances of being rejected for a payday loan.
A lender will need some kind of document to verify your earnings before considering your application for a loan.
Payday loans are very handy loans and can help you in the times of need. However, minor mistakes can cause your application to get rejected so make sure to be extra careful.