Applying for a payday loan is usually a simple process with a few requirements. However, while most lenders who provide payday loans are considerate, not all of them may accept your loan application. Here are some of the reasons lenders may reject your application:
You Have Many Existing Loans
When applying for a payday loan, lenders will determine your ability to pay off the loan. They will check your current financial situation. They will reject your application if they find out you still have many unpaid loans, including other payday loans. Lenders will assume you may not be able to pay off your loan with them because of your many financial obligations.
You Don’t Have a Job
Payday loans are designed for employed borrowers who need an immediate source of funds while their paychecks are still a few days away. Lenders will determine your qualification based on this criterion and when reject your application when you are not employed.
You have Bank Overdrafts
For your payday loan applications, you may be requested to provide a copy of your latest bank statements. In case your history shows you have dishonored payments, lenders may see you as a risk. A dishonored payment is when creditors have tried to debit from your account that doesn’t have enough money in it. This kind of history can get your payday loan application rejected.
Your Employer Pays in Cash
Being paid in cash can make it hard for you to get your loan application approved. Providers of payday loans will verify your income, often through your bank statements. In case you do not deposit the cash you get into your account every pay cycle, they will not verify it. Rather, you must look for a lender who will use your payslips for verification. Lenders that could not verify your income will reject your application.
You have a Bankruptcy Record
Just like any lenders, payday lenders will use your financial situation to identify your risk as a borrower. In case you have a bankruptcy record within the past year, they may take you as a high-risk borrower and reject you. Try to check for options if you have a bankruptcy record as some lenders may not care about this. For these lenders, the most important is your current ability to afford a loan and pay it back. Visit www.heartloans.co.uk.