When The Payday Loan Is Denied

When the​ Payday Loan is​ Denied
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.

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