If you are one of those who live from paycheck to paycheck without having enough savings for emergency expenses, you may find that you are unable to pay in case of unexpected situations. It could be, for example, home repairs or paying for the medical bills of your family members.
Why was my loan application rejected
Many people decide to take out a payday loan when they find themselves in such unexpected situations. The process of applying for such a loan is much easier when compared to a regular loan, but you should keep in mind that there is no guarantee that your application will be approved.
The most common reason for lenders to reject applicants for a payday loan is simply because they doubt their ability to pay back the borrowed money. You may be rejected, for example, because of your very low credit score. However, even if you are declined by one lender, that is not stopping you from trying your luck with another lender.
Why is my loan application pending
So, before you apply for a payday loan, we recommend that you read a list of the most common reasons for rejection, compiled by PDLoans247 specialists. It can help you to increase your chances of being approved in the future.
Keep getting turned down for payday loan: 6 Common Reasons for Rejection
Your permanent income is too low. The government has stopped requiring proof of borrowers’ ability to repay a payday loan. Even so, many lenders set a minimum income level, and in some states, they evaluate paying capacity of borrowers. Borrowers may be turned down for a loan if they have no regular income, or if they have very low income
You have not passed a credit history check. Some lenders accept bad credit and do not practice careful credit checks. But some lenders investigate your credit history when they review your application. This does not mean that if you have a bad credit history, you will certainly be turned down for a loan. But you should be prepared for the possibility that some factors, such as bankruptcy, may become a reason for refusal
Absence of a bank account. It is still possible to get a loan even without a bank account, but in this case, the process is much more complicated. Most lenders generally transfer funds to the borrower’s bank account and then write off payments within an agreed time frame. And those lenders who give cash loans check if the borrower has a bank account before approving the application
You have an overdraft on your bank account. Lenders have the right to ask for a recent copy of your bank statement when reviewing your application. If you have any overdrafts in your credit history, the lender may doubt your ability to repay a loan and decline the application
You get your income in cash. If you get your paycheck in cash, it will be difficult to prove your ability to repay a loan to a lender. Lenders usually require a bank statement to prove that you have a regular income
You do not meet the age requirement. In most states, the minimum age to qualify for a payday loan is 18. Some lenders do not give loans to people under 21. So before you apply for a loan, make sure you qualify in terms of age
By knowing the most common reasons for rejecting borrowers for payday loans, you can prepare as much as possible before your application.
We wish you good luck!