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aug 07

The checking account

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Most people who submit requests or applications for payday loans are approved throughout the day and they have the amounts they loaned during the next day. The reason being lenders demand only the minimum requirements. You can find, however, few instances when the loan application is denied. Here are ten main reasons why a person’s loan application is just not approved.

1. The potential borrower is not holding a job. The payday loan is really a loan against the wage that the employed person receives. Without employment there is no payday with no capacity to spend the money for loan.

2. The potential borrower has filed for bankruptcy in the past year. While lenders do not check a person’s credit history, they are concerned about the person’s capacity to meet his financial obligations. A bankruptcy is a declaration that the person can no longer support himself financially. And one year is not sufficient time to overcome such financial mess.

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3. The potential borrower has been employed for less than the desired number of months. Most payday lenders need a client to be holding his current job for at least six months. He must search for a lender who will likely accept his present employment situation when someone has been employed only for five months and he needs a payday advance. There are a few lenders who require a client to get employed only for at least ninety days.

4. The checking account in the potential lender is relatively new. Payday lenders prefer clients who are fairly stable along with a good indication of this financial stability is really a checking account that is at least ninety days old.

5. The monthly net income of the potential borrower is less than the desired income. The desired income is usually $1,000. If a person receives less than this, the lenders will assume that he will struggle to pay any amount which he will loan.

6. The possibility borrower features a considerable amount of overdraft fees and/or NSF in his checking account. Such will alarm lenders because the NSF and overdraft fees indicate that the individual is not a dependable borrower.

7. The potential borrower has unpaid payday loans or returned checks. Similar to the previous situation, these outstanding loans will urge lenders to deny the application.

8. The identity from the potential borrower cannot be confirmed. This often happens when the borrower utilizes a false name or provides inaccurate information. This also takes place when the contact information provided by anyone cannot be used. Obviously, lenders will not release funds for an unknown entity.

9. The payday lender cannot easily or directly establish the lender account information provided by the possible borrower. The loan originator tends to assume that the bank account no longer exists or is not valid.

10. And lastly, the possibility borrower receives his wage once a month. Pay day loans are short-term loans as well as the loan period is usually within 18 days. Employees who are paid monthly do not satisfy this requirement.

If a person’s loan request is denied but not due to any of the ten reasons above, he should contact the payday lender and ask for details.