If you need a payday loan, you’re probably wondering why you can’t get approved. The good news is that most reasons don’t have anything to do with your credit score or your ability to pay back the loan.
No situation can be worse when you urgently need money but get rejected for a payday loan. As mentioned above, the companies reject a payday loan application because of multiple aspects. Some of these are a result of avoidable errors and mistakes.
So if you are wondering Why Can’t I Get A Payday Loan, then stick to this article lisitng various reasons for loan rejection. Once you have this information, we hope you can get better results with your payday loan applications.
Reasons Why Your Payday Loan Application Got Rejected
They could reject your payday loan application due to the following;
- Income Proof
What matters is how much money you make and how long it takes you to repay the loan. If you don’t have a steady income or any proof that this is true, most lenders will not approve your application for a loan. Many lenders will also reject applications from freelance individuals or those who work as independent contractors. In addition to this, anyone who worked at a temporary agency has a high chance of rejection.
- No Checking Account
You cannot gain approval if you do not have a checking account. Almost all the lenders ask for post-dated checks. It is for the safety of lenders. The lenders ask permission to cut the loan amount from your account on the due date. So, if you do not have a checking account, it does not leave the lender with any security.
Hence, if your application got rejected, it might be the reason. If you urgently need a loan, get yourself a checking account. The process does not take long.
- Low Income
Even if you prove your monthly income, there is still a chance that the lender does not accept your application. The reason for such a situation is low monthly or annual income. Every lender or lending company has a standard amount of money you need to earn in a month or year. If your income is lower than that, you will get rejected.
So, if you can not prove that you make enough money to pay your loan, you can not qualify. So, you need to show a good amount of money to accept your loan application.
- You Have Already Taken Payday Loans
It will be extremely difficult to qualify if you have outstanding payday loans. A lender will get suspicious or doubtful about you if you have already taken multiple loans.
It is always easy to get a payday loan for the first or second time. However, if you have more than two outstanding payday loans, there is an 80% chance of rejection.
So, if you are going for a payday loan application, ensure that you do not have any outstanding loans. This increases your chance of acceptance.
- Poor Credit Score Or History
This is the most common reason for the rejection of payday loan applications. It can be difficult for you if you have a poor credit score. Almost all companies check the credit history of borrowers before anything else. So, if it is poor, you might face rejection.
A person’s credit score tells about their transactions, previous loan conditions, and bank statement. It is the best way to judge a person’s financial history. Hence, the companies ask for a high or average credit score.
However, multiple companies have emerged that do not care about poor credit scores. These companies will lend your money without checking your credit history. So, if you have a poor credit history, look for such companies. These companies have an extensive network of lenders. They will connect you with a lender that won’t ask you for your credit score. Hence, it will become easier for you to gain acceptance for a payday loan.
Having a history with gambling websites can affect your chance of acceptance for a payday loan. A lender does a thorough examination before lending money. So, if the lender or the lending company finds that you gamble on gambling websites, you might not get any loan.
Involvement with gambling websites means that you have transacted on such websites. In addition, if you have earned money through these websites, it will be unfavorable for your application.
A borrower earning or receiving money through gambling websites is unsuitable. You can either hide it while applying for the payday loan or stop using such websites before applying. It will increase your chance of acceptance.
- Not Meeting Lender’s Requirements
Many companies offer payday loans themselves. However, most of the companies connect you with different lenders. These companies or websites ask for your preferences. After this, they find you a perfect lender to connect with.
When dealing with an individual lender, you must comply with their requirements. Every lender, independent of the company policies, sets some requirements for its clients.
For instance, some lenders care too much about credit scores. So, your credit score must be good if you want to confirm the deal with the lender.
Other than this, some lenders care about your age or place of residence. For instance, a lender won’t give you a loan if you are younger than 21. Other lenders might lend you even if you are a teenager. If you review the requirements and find which one you didn’t qualify for, you will understand why your application did not get accepted.
Why Can’t I Get A Payday Loan? Final Thoughts
There is no single reason for your rejected payday loan application. If you have applied and did not get a positive review, see what your mistakes were. Take a look at your credit score. If it was poor, there is a high chance it was the reason.
However, if you have an excellent credit score, it might be because of your income. Either you could not prove your income, or your monthly income was insufficient to meet the criteria. After going through the points mentioned above, you will surely understand why. Furthermore, you can refer to Loan Service MS for such services.