“I Keep Getting Denied for Payday Loans!”

I Keep Getting Denied for Payday LoansMany of our visitors tell us they eep getting denied for payday loans. If this is the case for you then you are probably wondering if there’s anything you can do about, or if there are some lenders that are more lenient than others.

Since most lenders don’t do a credit check before they approve you for a loan, you can drop that as a possibility for why you keep getting denied, especially if you’ve applied at multiple lenders with the same result. They basically just want to verify that you’re currently employed, that you earn enough per month to pay back the loan on your payday, that you have an open and active checking account, and that you’re of legal age. Fail to meet any of these requirements and you’ll likely get stopped at some point of the process.

You may be thinking that online lenders might be less picky about their requirements, but in many cases the opposite is true. Online lenders have to worry more about fraud since they’ll never actually meet you in real life. They usually end up doing more verification, such as calling your employer to see if you’re still employed and to verify your income.

Do You Keep Getting Denied for Payday Loans?

It’s important to have all of your ducks in a row. Call ahead and ask what the requirements are before you go to their office. Since real world lenders are subject to audits by their own internal staff as well as by state officials they like to keep everything in its proper order so they don’t get fined or shut down. That’s why they usually won’t make any exceptions to their requirements because they don’t want to suffer the consequences later.

Low Income
Payday lenders need you to make a certain amount of money in order to extend a loan to you. They need to know that you’ll have the funds in order to get paid back on payday, and many states will mandate the maximum loan amounts they can give you based on a percentage of your monthly net income. In these cases the lender can’t do anything for you, their hands are tied and they’ll give you a denial letter that will explain why this is the case.

Bank Account Issues
The bank account is a major feature to the payday loan process, and if a lender suspects that yours isn’t open and active they might decide to reject you. With many lenders you write them a check for the amount of the loan plus the fee. They will either have you come in and pay them back with cash, at which time they give you your canceled check back, or they will have you agree to allow them to cash your check on your payday. Online lenders will simply debit your account for the amount owed on your payday.

If you can’t produce a current bank statement showing funds going into and coming out of your checking account, they’ll sometimes allow you to get a current statement printed from your bank, and they may call the bank to verify that the account is open.

Too Many Loans Out
Many states have a cap in place for how many loans you can take out at one time. This means that if you’ve hit that limit and are unaware of the law you will get denied at the lender’s office when they check the statewide database.

It’s no fun getting denied for payday loans, since this is often the last resort in times of financial struggle. But on the bright side payday loans rarely fix the problem, and often add to it with their high fees and the trap that it can get you into if you’re not careful or lucky. You can attempt to fix the above issues you’re having, but that will likely take some time and when you need emergency money it’s usually not an option to wait.

It’s not a good idea to vow to do what it takes to get a payday loan. Instead, try to think of other ways you can get the money you need without spending so much on fees and interest. It could be the universe’s way of making you think a bit harder and more creatively.

Add Your Own Tips for Those Denied for Payday Loans Below

VN:F [1.9.20_1166]
Rating: 0.0/5 (0 votes cast)
VN:F [1.9.20_1166]
Rating: 0 (from 0 votes)
You May Also Like:

Leave a Comment