When The Payday Loan Is Denied

Most people who apply for or request payday loans are approved during the day, and they get the money they borrowed the next day. This is because lenders only ask for the bare minimum. But there aren't many times when the loan application is turned down. Here are ten reasons why a loan application gets turned down.

1. The person who wants to borrow money has filed for bankruptcy in the past year. Lenders don't look at a person's credit history, but they do care about whether or not the person can pay back the loan. A person declares bankruptcy when he or she says that he or she can no longer pay for himself. And a year is not enough time to get out of this kind of financial mess.
2. The person who wants to borrow money doesn't make enough money each month. Most of the time, a $1,000 income is needed. If a person gets less than this, lenders will think he won't be able to pay back any money he borrows.
3. The person who wants to borrow money has a lot of NSF and/or overdraft fees in his checking account. The NSF and overdraft fees will make lenders nervous because they show that the person is not a reliable borrower.
5. The payday lender can't easily or directly check the information the potential borrower gave about his or her bank account. The lender usually thinks that the bank account doesn't exist anymore or isn't real.
6. It's not possible to find out who the possible borrower is. This happens a lot when the borrower uses a fake name or gives wrong information. This can also happen when the person's contact information is wrong or can't be used. Obviously, the lenders won't give money to someone they don't know.
7. The possible lender's checking account isn't very old. Payday lenders like to work with people who are financially stable, and a checking account that has been open for at least three months is a good sign of this.
8. The person who wants to borrow money hasn't been working for the required number of months. Most payday lenders want their clients to have held their jobs for at least six months. If someone has only been working for five months and needs a payday loan, he must look for a lender who is likely to accept his current work situation. Some lenders want their clients to have been working for at least three months.
9. The person who wants to borrow money does not have a job. The payday loan is a loan that is paid back with the next paycheck. Without a job, you can't get paid and can't pay back the loan.
10. The person who wants to borrow money has unpaid payday loans or checks that were returned. Like the last time, these outstanding loans will make lenders more likely to turn down the application.

If a person's loan request is turned down for a reason that isn't one of the ten listed above, he should contact the payday lender and ask why.