Most people who apply for payday loans are approved within a few hours, and they get the money they borrowed the same business day. This is because lending companies only ask customers to meet the bare minimum. There may be few times, though, when an online application is turned down. Here are ten reasons why a lending company might not give you a cash advance.
- The person who wants to borrow money has filed for bankruptcy in the past year. Cash advance companies don't check your credit score, but they do care about whether or not you can pay your bills. If a person declares bankruptcy, it means that he or she can no longer pay for his or her own needs. And one year is not enough time to get back on your feet after serious financial problems.
- The possible borrower's checking account isn't very old and doesn't have a long enough history. Lending companies want customers who are stable, and a checking account that has been open for at least three months is a good sign of that.
- The person who wants to borrow money doesn't have a stable job. The payday loan is a loan that is paid back out of a person's salary. Without a job, there is no way to get a paycheck and pay back the payday loan.
- The person who wants to borrow money hasn't been at their current job for the required 3 months. Most cash advance companies want their customers to have had the same job for at least three months.
- 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 not want to give you money.
- The person who wants to borrow has a lot of NSF and/or overdraft fees in his checking account. The overdraft and NSF fees show that the person is not a reliable borrower, which will worry your lending company.
- It's not possible to find out who the possible borrower is. This usually happens when the borrower gives false information about himself or herself. This can also happen when the client's contact information can't be used.
- It's hard for the cash advance company to verify the bank account information given by the applicant. The lender usually thinks that the bank account doesn't exist anymore or isn't real.
- The person who wants to borrow doesn't make at least $1,000 a month. If a person makes less than this amount, payday loan companies will think that he won't be able to pay back any amount he gets.
The applicant only gets paid once per month. Payday loans are small loans for a short amount of time, usually between two and four weeks. This is not true for employees who are paid once a month.
If your loan application is turned down for a reason that isn't on the list above, you should talk to your payday lender to find out what happened.
