When The Payday Loan Is Denied
Written by: Grace Palce
Most people who submit requests or applications for payday loans are approved during the day and they receive the amounts they loaned during the next day. This is because lenders demand only the minimum requirements. There are, however, few instances when the loan application is denied. Here are ten reasons why a person's loan application is not approved.
1. The potential borrower is not holding a job. The payday loan is a loan against the wage that an employed person receives. Without employment there is no payday and no capacity to pay the loan.
2. The potential borrower has filed for bankruptcy during the year. While lenders do not check a person's credit history, they are concerned about the person's capacity to meet his financial obligations. A bankruptcy is a declaration that the person can no longer support himself financially. And one year is not sufficient time to recover from such financial mess.
3. The potential borrower has been employed for less than the required number of months. Most payday lenders require a client to be holding his current job for at least six months. If a person has been employed only for five months and he needs a payday loan, he must search for a lender who will likely accept his present employment situation. There are a few lenders who require a client to be employed only for at least three months.
4. The checking account of the potential lender is relatively new. Payday lenders prefer clients who are fairly stable and a good indication of this financial stability is a checking account which is at least three months old.
5. The monthly net income of the potential borrower is less than the required income. The required income is usually $1,000. If a person receives less than this, the lenders will assume that he will not be able to pay any amount that he will loan.
6. The potential borrower has a considerable number of overdraft fees and/or NSF in his checking account. Such will alarm the lenders because the NSF and overdraft fees indicate 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 urge lenders to deny the application.
8. The identity of the potential borrower cannot be confirmed. This often happens when the borrower uses a false name or provides inaccurate information. This also happens when the contact information provided by the person cannot be used. Obviously, the lenders will not release funds to an unknown entity.
9. The payday lender cannot easily or directly establish the bank account information provided by the potential borrower. The lender tends to assume that the bank account no longer exists or is not valid.
10. And lastly, the potential borrower receives his wage once a month. Payday loans are short-term loans and the loan period is usually within 18 days. Employees who are paid monthly do not satisfy this requirement.
If a person's loan request is denied but not due to any of the ten reasons above, he should contact the payday lender and ask for details.
About The Author
Mrs. Grace Palce is writing short term loan and payday advance articles for http://www.sameday-payday-loan.com and faxless payday loan articles for http://www.faxless-paydayloan.org.
Employ Bridging Loans for short term financial gaps
Each one of us may face financial crisis in our life. I too have
faced. I always wanted to own a home with a big beautiful
garden. I had been looking for it for a long time and one day I
found it. However, there was one problem, I would say a...read more
Meeting a Financial Need With A Payday Loan
You may be in the position where it may be impossible to see how
you can possibly make it through a financial problem; this is
why many people are very grateful to the Payday Loan Companies.
This type of short-term loan can be extremely...read more
How to Find a Low-Interest Debt Consolidation Loan
Debt consolidation loans help debtors lower their monthly bills
while paying off credit cards with high interest rates and debt,
adhering to an overall debt strategy. Many online counselors or
debt management services will offer to make your...read more
Return to Home