Why Am I Not Getting Approved for a Payday Loan
Why Am I Not Getting Approved for a Payday Loan?
Payday loans create a dark cycle that could take you towards a hand to mouth situation. You try to come out of it, but its 200% annual interest rate does not let you get out of it. Payday loans are generally not for everyone. A large number of people complain that they could not get approval for a payday loan. They want to ask the reason for rejection of their payday loan. Here are a few solid grounds for denial of your payday loan request.
Monthly Income below the Set Line
When you apply for a payday loan, and you do not meet the minimum financial requirements, your application is rejected. The states have set some rules and regulations for the money lenders in this context. No payday lender can show flexible attitude in this matter. If you are earning less than $800 every month, you are not eligible to get a payday loan. The minimum monthly salary to get the approval is $800.
Sometimes, the people who do not have sufficient employment proof cannot get the payday loan. Some self-employed people cannot provide with the company the required financial evidence of the next payday. So, the payday lender feels hesitation to approve their payday loans.
Bank Account is a Must
You should have a bank account where the payday lender could transfer the payday money. It is the same account from where they will deduct the full loan on the next payday. If you do not have a bank account, the money lender will not find a way to allow this transaction. Thus, it will reject your application, and you do not get a loan. However, if you do not have a bank account, you can show your saving account details. It may satisfy them to approve your payday loan but not sure about it. It can also go against you. Everyone knows that the people having saved money in the account do not need a payday loan for their sudden expenditures. When you are applying for a payday loan, you are going to get a small amount with 600% interest rate annually. So, why you intend to get a payday loan with a huge interest rate while having a handsome amount in your saving account? This type of things can make your account provision suspicious. Finally, the company rejects your loan.
If you have taken some other payday loans and you did not return them in time, you will be in the danger zone to get more payday loan. The company will consider your bad credit a serious risk and will not approve your loan request.
Unavailability of a Financial Recommendation
If you have bad credit, you should attach a recommendation from any of your wealthy family members or friends. You can use this recommendation in your favor. The company will consider it a high proof and will approve your loan. If you do not attach a recommendation from a wealthy person in spite of your bad credit, you cannot get approval for a payday loan.