Most people who fill out applications for payday loans are usually approved within a few hours and they get the money they loaned the same business day. This is because lending companies demand only the minimum customer requirements. However, there may be few instances when the online application is denied. Here are ten reasons why your cash advance application is not approved be lending company.
1. The potential borrower does not have a stable employment. The payday loan is a loan against the salary that an employed person receives. Without employment there is no paycheck and no capacity to pay the payday loan.
2. The potential borrower has filed for bankruptcy during the year. While cash advance providers don’t check your credit score, they are concerned about your abilities to meet your financial obligations. A bankruptcy shows that the person can no longer support himself financially. And one year is not sufficient time to recover from serious financial difficulties.
3. The potential borrower has been employed at current job for less than required 3 months. Most cash advance providers require a customer to be holding current job for at least three months.
4. The checking account of the potential borrower is relatively new and does not have enough large history. Lending companies prefer customers who are stable and a good indication of real financial stability is a checking account which is at least 3 months old.
5. The monthly income of the potential borrower is less than required $1,000. If a person earns less than this amount, the payday loan providers will assume that he will not be able to pay any amount that he will get.
6. The potential borrower has a big number of overdraft fees and/or NSF in his checking account. Such situation will alarm your lending company because the overdraft and NSF fees show that the person is not a dependable borrower.
7. The potential borrower has unpaid payday loans or returned checks. Similar to the previous situation, these outstanding loans will compel lenders to deny your application.
8. The identity of the potential borrower cannot be confirmed. This often happens when the borrower provides inaccurate personal information. This also happens when the contact information provided by the client can’t be used.
9. The cash advance provider can’t easily establish the bank account information provided by the applicant. The lender tends to assume that the bank account no longer exists or is not valid.
10. The applicant receives his wage only once a month. Payday loans are small, short-term loans and the loan period is usually within 2-3 weeks. Employees who are paid monthly do not meet this requirement.
If your loan application is denied but not due to any of the ten reasons above, you should contact your payday lender to clarify the details.