We all need a little extra cash now and then, for countless reasons that life throws at us. One possible issue is being declined for a payday loan. If you have recently been denied a payday loan, you aren’t alone. Payday loans are seen as one of the most effective solutions for short-term funding needs, but despite what many people think, approval isn’t guaranteed. Several factors can impact your approval odds.
Many factors can lead to a declined payday loan application. We’re going to dig into some of the most common reasons why you might get a denial for a payday loan, as well as what you can do to increase the chances of approval in the future. In the end, we’ll talk about why Lending Bear is one of the leaders in payday loans.
One of the biggest and most common reasons to find yourself being denied a payday loan is the lack of an income or employment history. Lenders want to know a bit about your income and employment history. This is to ensure that you have a steady income, and thus the means to pay back the loan that you’re applying for. Before applying, make sure you have employment or regular income to pay the loan back.
While some payday lenders have a more lenient credit history requirement compared to conventional lenders, many of them will still take your recent credit history into account. If your credit history shows a pattern of later payments, defaults, or multiple bankruptcies, lenders are going to be far less likely to approve your application.
Loans of all types will require documentation to verify your identity, income, and various pieces of personal or bank information. If you fail to submit the required documentation or provide incomplete or false information, your loan application will get declined.
Many states have regulations that limit the number of loans that you can have at once. If you have already taken out one or more payday loans, or other outstanding short-term loans, potential lenders may see this and decline your application. If they violate state regulations they could face fines, and you could face unmanageable financial burdens.
Payday loan laws vary from one state to another. These regulations include limits on loan amounts, caps on interest rates, and mandated repayment terms. If your application doesn’t meet the specific regulatory requirements in your state, your lender won’t be able to approve your application.
If there are errors or inconsistencies in your payday loan application, it can be an indication of fraud or identity theft. In these cases, any reputable lender will decline the application. If you’ve had your identity stolen before, it can lead to this issue popping up from time to time.
At Lending Bear, we know that there are times when you need fast cash for many different reasons, and we’re here to help. We’re one of the most rapidly growing short-term lenders in Alabama, Florida, Georgia, Tennessee, and Louisiana for payday loans. Our loan process is fast, and most loans are approved in just 15 minutes or less. Don’t worry about credit damage or bad credit history, we won’t need your credit score, just a brief online or in-person application. Reach out today to get started.