10 million people in America will take out payday loans this year. Those loans will help them do everything from patching up leaks in their roofs to putting food on their tables.
For many, payday loans are a last-resort loan after having been rejected by more conventional loan products, hence applicant’s frustration when they find out that they’ve been turned down.
If you keep getting denied for payday loans and aren’t sure why, below, we step you through the top 8 reasons for rejection to help you get to the bottom of things.
1. You’re Not Old Enough
If you keep getting denied for payday loans, the first thing that you’re going to want to look at is how old you are versus how old you have to be to get your loan.
In most developed countries, you need to be 18-years-old to take on a loan. In some places, you have to be as old as 21.
There’s no way around this requirement so if you’re not old enough to take out a loan, stop applying and wait until you are.
2. You Don’t Have a Checking Account
In order for a payday loan provider to deposit and withdraw their loan money, many will require that you have a bank account. As a matter of fact, you’d be hard-pressed to find a loan provider that will service your loan request without asking for an account and routing number.
Fortunately, getting a checking account should be simple so long as you’re a citizen/legal resident of your country and are over 18-years-old.
Just go to your local bank or credit union, see what free checking/savings account options they offer and sign up.
3. You Don’t Have a Job
At the top of just about every how to get a payday loan guide is the requirement of employment.
If you don’t have a job, payday loan providers are going to be skeptical of your ability to pay them back. Rather than take the risk, most will reject your application.
This possible reason why you keep getting denied for payday loans is more challenging than others to remedy but is still manageable. See if you can find a part-time means of employment that’s willing to provide you official work documentation (pay-stubs, W2, etc.).
Once you’ve been employed for 2-weeks, you should be able to find a lender that’s willing to do business with you.
4. Your Job Is Paid All-cash
A lot of people that keep getting denied for payday loans on the grounds of unemployment contend that they do have a job but it’s paid under the table. Unfortunately, under the table work will not suffice for most payday loan lenders as there’s no way to actually verify your employment.
Consequently, you’ll need to obtain a fully documented means of employment if you’d like to qualify for loan offers.
5. Your Credit Score Is Bad
Believe it or not, this is a rare reason for payday loan rejection. That’s because most payday lenders do not run your credit.
If your lender explicitly tells you that your bad credit is causing you to keep getting denied for payday loans, we’re willing to bet that they aren’t a payday loan lender at all. They may be a more traditional lender that’s masquerading as a payday loan provider for branding purposes.
While it’s never a bad idea to improve your credit, to fix your problem immediately, consider going to another payday loan provider.
6. You Already Have Existing Payday Loans
No payday loan provider is going to offer you a payday loan if you already have one. That would defeat the purpose of a payday loan.
Payday loans typically equal the amount that you’ll get on your next paycheck (ie: an advance on your check). The thought is that once your paycheck comes in, you’ll be able to simply hand it over to your lender (plus applicable fees) and your debt will be covered.
If you have multiple lenders all waiting for you to hand them the same paycheck, you can see how that would present a problem.
7. You’re Being Discriminated Against
While very rare, there are cases where private lenders may be breaking state and federal laws by not servicing your loan because of your immutable qualities.
If you can honestly see no financial reason as to why a lender would be denying your loan and have proof that people with equal qualifications are getting their loans serviced, file a report or contact an attorney.
You can learn more about filing here.
8. Your Lender Is Too Conservative
As we alluded to previously, payday loans are supposed to be among the easiest loans to get. If you’re finding that, no matter how hard you try, your loan applications are not going through, there’s a possibility that the lender you’re trying to do business with is too conservative in their loan requirements.
Take your business to another lender and try again.
Final Thoughts on Potential Reasons Why You Keep Getting Denied for Payday Loans
When you keep getting denied for payday loans and are in desperate need of money, things can get stressful. To remedy that stress and get yourself the financial assistance that you need, use our tips to get to the bottom of why your applications may not be seen as acceptable.
Armed with the right insight, you can remedy potential problems and apply for payday loans to a much higher degree of success in the future.
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