Reasons Why You Might Not Get Approved For a Payday Loan

Reasons Why You Might Not Get Approved For a Payday Loan

In lending industry, they all have different qualifications. Some use collateral (a property of a borrower that is same as the amount or higher than the amount being borrowed is lenders assurance that borrower can repay their debt) or also known as secured lending because lender has borrowers property that is being used as security for the loan. Other lender just depends on borrower's credit history or just simply trusts the borrower and hope they pay back. This is known as unsecured loan. Credit Cards and Payday Lenders can be the best examples of this type of loan, the only difference is Credit Card Companies look at their client's credit history or credit status before they get approved for a card while Payday Loans, they do not base it to credit history, instead they give them another chance and hope they pay it back.

This type of Short term loan is sometimes misinterpreted; some say its automatic approval or approval is guaranteed... this is not true. Some applicants are still being declined on this. Lending companies like this also has things they require before getting the loan approved. Here is the top most reason why your Short term loan might not get approved:

Unemployed- If the borrower is unemployed, this simply means that the borrower has no fixed income or has no source of income to pay back the lending company. It will be a head ache to run this kind of business if all type of loans will be approved... regardless of customer's income. Some companies allow people who have benefits like disability or social security, but other's don't.

Poor repayment history- some lending companies has this system that can check the "customer-to be" record of credit history. They would know if the applicant has past due or default on their credit cards, bills, etc. lending company has the option to approve these borrowers but these customers are also considered as high risk. Some of these companies are lenient and accept high risk applicant.

When we see that one lending company allows up to $1000 or $1500, we often ask for the highest amount they can lend us. We also have to keep in mind that if we have a not so good credit history, we should also consider lesser amount. These lower amount gets the higher chance to get approved while higher amount might not get approved.

POST COMMENT

SBA Loan Default: Why Is My Banker So Mean To Me? Monthly Income From ClickBank Virtual Bank Defined How Is An Assumable Loan Beneficial To A Borrower? Student Loans - 3 Simple Steps To Help You Clear Your Debt All About Cheap Secured Loans A general overview of Personal Loans in the United Kingdom 5 Clickbank Alternatives Jumbo Loans slowly returning Payday loans Toronto-Financial help for the Toronto people Last Year's Fall In Property Prices Has Affected Secured Loans, Mortgages And Remortgages 30 Days Payday Loans for People on Benefits: Swift Way of Getting Easy Funds Cash Loans To Your Door – Loan At The Convenience Of Your Home