Reasons You Don’t Qualify for a Payday Loan
Payday loans are usually one of the easiest loans to qualify for. All you need is proof of your income, and you can get the money in your bank account in a matter of minutes. But there are still many reasons why you might not qualify for a payday loan. Here are some of them.
Unemployment or Loss of Income
If you have recently lost your job, it is unlikely that any lender, including online lenders, will approve you for a short-term loan until you have found another income source.
These loans usually depend on your ability to pay, and without a job, it is virtually impossible for you to pay the loan back.
Unemployed borrowers should focus on finding another income source and then apply for a payday loan, if necessary.
Been Turned Down Before
If several lenders have rejected your application, it may be hard to find one that will approve you since they all share the information with each other. If you have been turned down for a short-term loan, don’t give up hope yet.
Apply with another lender who has direct deposit payday loans or one that offers a second chance credit loan. Often, if one lender turns you down, it is because your credit score was too low to qualify or they don’t think you’re creditworthy.
You Have Other Pending Payday Loans
It’s difficult to qualify for a loan if you haven’t paid the previous one. You may have to wait until the pending loans are paid before you can get approved for another one.
If you did not prepay your loan by the time it was due, and you didn’t pay it, lenders may not be willing to approve a new loan for any amount.
You Are Behind on Your Bills
If you fall behind on bills, your credit score will be lower, making it difficult to qualify for a loan. Some lenders may approve you if your bills are up to date but only give you a smaller amount than what you need.
If you have extra money, pay the minimum amount on any past due bills because this helps your credit score improve. If you don’t have extra money, set up an automatic payment for the full amount before it is due to avoid any late payments.
Your Credit Card Balances Are Too High
Lenders may reduce the loan amount if your credit card balances are too high because there’s a greater risk that you will not pay them back.
Try paying off some of these debts first or making extra payments to get the balances down. If you are already doing this, ask for a larger loan amount because lenders want to see that you pay your bills on time.
You Need More Than One Loan
Don’t apply for multiple loans at once because this will make it more difficult for you to repay them all if something unexpected happens.
Instead, apply for one loan at a time. When you are approved, take the money and pay off your other debts. Then make full payments on all of your loans.