Factors Responsible for the Rejection of Most Payday Loan Applications

Have you ever applied for an easy payday loan only to have it rejected? Well, there could be a number of reasons why you are ineligible to receive the loan. Knowing what these reasons are will enable you to quickly resolve the problem and reapply as soon as possible. Factors responsible for the denial of most payday loan applications include:

Unemployment

The main reason for most loan application rejections is unemployment. A reason which, it must be mentioned, is very justifiable. The rationale behind a moneylender loaning you money is that you’ll pay it all back with interest once your paycheck comes in. If it so happens that you don’t have any money coming in, then lending you money becomes a very risky decision. If this happens to be the position you’re in, the best solution is to get a job before reapplying.

Having multiple payday loans

It’s not uncommon for moneylenders to discover that their applicants have taken out multiple payday loans from different lenders. Such findings have a way of making a lender very jittery about handing their money to such individuals. When handing out money to an applicant, lenders need the assurance that you have the ability to pay it back in the stipulated time.

An applicant who has several loans is one whose finances are already a mess. Moreover, such a financial history could hint a questionable activity. Should you find yourself in such a scenario, the best thing you can do is to focus on clearing your current debts first.

A bad credit score

There are a number of lenders out there who have no reservations working with people with bad credit. Nevertheless, the vast majority of respectable and legitimate moneylenders wouldn’t dare touch anybody with a bad credit score.

The main reasons for this include over-borrowing, indebtedness and an inability to pay things on time. These factors paint a picture of an individual who many moneylenders try to avoid. Applicants who find themselves in this situation should take the hard route of painstakingly restoring their credit status. This will involve striving to do the inverse of all the activities that got them the bad credit score in the first place.

Gambling

Moneylenders, as a rule, don’t give payday loans to individuals who gamble. It doesn’t matter whether the individual in question only occasionally visits gambling sites, the lending institution doesn’t want to place itself in a situation where it is serving as a financier for gambling activities.

Therefore, it follows that all applicants will have their financial statements analyzed for such payments. The solution to this problem? Avoid online gambling sites altogether. If you absolutely have to gamble, then take the safe route and visit a bookmaker in your local area.

Welfare being your only source of income

There are a few lenders that don’t mind giving money to people whose only source of income is their welfare earnings, but the majority will only approve applicants who have a supplementary income. This additional income gives the moneylender the confidence that the applicant will have the means to pay back the money on time.

Getting cash payments

A common practice in many workplaces involves employees getting paid in cash rather than payments being made into their bank accounts. It’s also not uncommon to discover that such establishments usually lack any contracts for their staff. While the benefit of such a policy is that employees don’t have to pay any taxes, the downside is that they may have problems getting a payday loan.

All moneylenders will require evidence that such individuals have a regular income. If this evidence cannot be provided, the lender will have no option but to reject the application.

Bankruptcy in your financial records

If you have been bankrupt within the past year then there is a high chance that your application for a payday loan will be rejected. A moneylender will be of the opinion that your financial position is not strong enough to warrant giving you a loan at the moment. Nevertheless, there are moneylenders who have a separate loan policy for recently bankrupt individuals.

The upside of such conditions

The above-stated reasons might make it seem like moneylenders are too strict, but there is an upside to these conditions. This proves that the lender isn’t prepared to give their money to just about anybody who walks through their doors, so such a moneylender is most likely legitimate and worth engaging with.

About the author

Haley Grant

Haley Grant is a full-time content writer at Konsus who previously worked as a freelance writer with Glamping Hub, Inc. With a degree in English Creative Writing and Business Studies from Providence College, Haley recently moved from her hometown in New York to Madrid, Spain. Haley is passionate in all things related to writing and content creation, and ensures client satisfaction in her work.

Copyright © 2021. SlickCashLoan.com. All rights reserved. [email protected]

 

General Information: Slickcashloan.com website’s owner doesn’t lend or represent any lender or provider of such service, doesn’t make decisions regarding credits or loans, and isn’t implicated in any way in the process of lending.

 

Terms of Loan Request: Slickcashloan.com is a platform that connects potential loan borrowers with reliable and reputable loan lenders. It doesn’t regulate the lending process hence isn’t liable for the actions of the lenders. The particular lender offering the services is responsible for and controls loan terms, rates, fees, loan amount, terms of repayment, legal actions for late and non-payments, as well as cash transfer times.

 

State Regulations: Borrowers in some states might not be eligible to apply for some online loans. Additionally, loan services aren’t available to all jurisdictions or states.

 

Credit Implications: Lenders on slickcashloan.com can review a borrower’s credit history when making the lending decision. This process can involve contacting an applicant’s credit bureau to determine their credit aptitude, worthiness, and standing.

 

Loan Approval: Slickcashloan.com doesn’t guarantee approval of any loan. This website is just a platform for linking borrowers and lenders. Therefore, the decision to approve or not to approve the loan depends on the lender.

 

Borrowers Beware: Short-term lending is intended to address financial needs for a short time; hence, it can’t be used as a long term solution. Short term loans come with some costs that may make a borrower’s financial situation worse. Applicants are advised to consult with a financial expert about the risks involved in taking a short term loan and the best alternatives.

 

By using slickcashloan.com, the User acknowledges that they’ve read and understood the Privacy Policy, Terms of Use, Rates, and Disclaimer.