Payday loan online lenders and payday “brick and mortar” locations boast through their advertisements that payday loans are easy no credit bureau check loans. Yes, there are no credit bureau checks and the loan application is simple to do. Also, there are low-income borrowers. No, the responsible lender cannot approve everyone. There are specific qualifications set up in the approval process that are based on each company’s lending practices. Some people might be denied by one company only to be approved by another.
Denial Reasons For Payday Loan Online
- You are not employed, or the company cannot verify your employment. (Though benefits are fine)
- Your income is not high enough to support your loan payoff. Remember, these loans should be paid off with your next paycheck; not having enough to take care of running a household would set a borrower up for financial problems.
- You do not have a traditional bank account, or it is not at least 60 days old.
- You are in the military. Most lenders cannot loan to the military and follow guidelines. Double-check, before you take the loan out, falling into debt, can get military personnel punished. It is just good practice to be cautious.
- Your paychecks are not directly deposited. Not all lenders will require this, but the better ones will.
More Reasons To Not Get Approved
- You have too many current payday loans out. Some states regulate how many payday loans you may have out at once or even per year. There are payday lenders who have created their terms and policies as well as follow state guidelines. Responsible lenders will keep an eye on this.
- You have defaulted on previous payday loans. What lender wants to put money into a loan which is already high risk without proof of a potential customer having defaulted on past payday loans?
- You have too many NSF/Returned Item reports. A payday loan online company needs some assurance that money will be in the account when the payoff is due.
- The state you live in has banned payday loan lenders from servicing their residents.
- The company you are applying to is not licensed in your state. Some state regulations require online lenders to obtain a license to loan in their state. Some lenders will not bother to apply for this license for individual reasons.
More Disqualifying Factors
- You are self-employed. Income stability is not supportive of a short-term loan.
- You work for a temp-agency. There is no assurance of full-time employment when you work on an on-call basis.
- The information on your application was not verifiable. Incorrect phone numbers and homemade bank statements are a clear denial for a high risk payday loan. A best practices payday loan company will check your information to prevent future problems or steer off fraudulent applications.
Payday Lenders Doing You A Favor
As tough as your financial situation may be, a payday lender who denies your application is most likely doing you a favor. Responsibility comes from both parties. Payday loans are not the answer to all financial difficulties. Continue to look through some better options for yourself to take care of your impending money problem. Just because payday lenders do not do a credit bureau check doesn’t mean that getting approved is a slam dunk. There are other practices that payday loan companies can analyze to see if you are good candidate for a loan or not.
Make Some Calls For Explanation
These are some reasons why a loan application can turn you down for that online payday loan. There are other factors, but these might better explain why you can’t seem to get approved. If you still have questions, give the company a call. They should be able to find your application and may be able to inform you of the specific details. Keep in mind, most cash advance companies use very similar practices, so it’s best not to jump from one website to another. Get to the bottom of that denial. Sometimes, if you fill out too many online applications, that will be enough for a denial too.
Emergency Cash is Right Around the Corner
There may be other financial options out there if you need emergency cash, and you cannot get approved for a payday loan. Ask your friends and family; maybe some benefits are available for you. The government is trying to assist people financially with tuition, food, housing, and income, so you can try researching that. If you are in dire need, sometimes your local churches have special resources as well. Look around; many people want to help.