We all run into money problems. Payday loan is a great place to look for temporary financial help. Approval for the Payday loan can be done during the same business day as the application process, and a lot of people can receive the borrowed funds within 24 hours. The reason for that is because many Payday loan companies do not require much personal information and they also do not run a credit check before issuing a loan. Not every application is accepted. There are occasions when an application for a payday loan is rejected. I am going to go through each one of them below:
1. The applicant cannot provide evidence of employment. .Payday loans are given based on the applicant would receive enough funds from their employer to cover the loan. Once the applicant receives a pay check from their employer, he/she has to pay back the loan right away. If there is no employment can be verified, the Payday loan company cannot be sure to receive payment.
2. The applicant has filed for bankruptcy within the past year. Well, a lot of Payday loan companies do not run credit checks; however they still want to be certain that a person will be capable of fulfilling monetary obligations. Under the law, bankruptcy is basically states that a person is unable to support himself/herself financially, and most Payday loan companies believe that it takes more than one year to recover from such financial troubles.
3. The applicant has not been employed the length of time required by the particular lender. Most Payday loan companies prefer that the applicant has been at their present place of employment for at least half year. There are some Payday loan companies will do 3 month, however you will have to search for them.
4. The applicant does not meet the required monthly net income. A lot of Payday loan companies require that the applicant to have a net income of at least $1000 a month. If the applicant makes less than that, they would question the person's ability to pay back the loan money and are hesitant to lend.
5. Last but certainly not the least, the applicant has a great deal of overdraft fees or insufficient funds charges from their financial institution. This will immediately serve as a warning to loan companies. They will assume that this person is not dependable and will not be able to pay back any loan that is given..
My advice for you is that if you apply for a payday loan and was rejected; make sure you ask for detailed information why it was rejected. It could be the reason I said above or it could be that you completed a portion of the application incorrectly, which you can correct and then reapply. However, if you find that you do not qualify for a payday loan with a particular company, take some time to research other potential lenders as many have varying requirements.
