You may have heard that payday loans are guaranteed to you, no matter what. How much we wish this was always true! Though having a payday loan application in Canada declined is not uncommon, there are times you can be denied a payday loan. Have you been denied a payday loan before? Or are you just afraid you may be denied the loan someday? If you have been concerned having your loan application turned down, this post can shed some light on your question.
In this article, we are going to look at factors that might contribute to your loan application being denied, which can alter your borrowing strategy. This way, you will be able to prepare your loan application the right way and get the money you need.
So, how can you be denied a payday loan? First and foremost, when you apply for a payday loan, your private lender will want to determine if you will be able to repay your loan amount. Then, they will look at the information you provide on your loan application to give them an idea about your financial situation. The following is the information that your loan lender will be eager to know:
- Your lender will want to see if you have any other payday loans that you haven’t yet paid off;
- They will be interested to know if you have applied for more than one loan in the past 90 days;
- Your private money lender will check your financial history to see if you have a pending loan that you are hoping to pay with the loan you are borrowing from them now.
Other Contributing Factors to Having Your Loan Application Turned Down
Sometimes, other factors can contribute to your loan eligibility. Let’s take a look at a couple of the leading contributors.
Your Money Lender Will Want to Know About Your Employment
If you are not a first-time payday loan borrower, you must know that having a job or small business is key to having your loan application accepted. After all, in order to repay your payday loan, you need to have some source of income. Specifically, from your job or small business. So, if you don’t have any of these income sources, your loan lender will question your ability to pay back your loan amount.
There are also cases where some money lenders accept borrowers on welfare, but you need to have some supplementary income or you will be denied the payday loan. Then, you need to ensure you meet these criteria, or your loan application will be denied.
Money Lenders Don’t Like Borrowers Who Pay in Cash
As they review your loan application, money lenders will be interested to see if you deposit the money you receive into your bank account. Imagine if you don’t deposit your cash into your personal bank account? How can they trust you to repay the loan amount you are borrowing from them? This, too, can contribute to you being denied the payday loan you are requesting.
Final Thoughts: Can You Be Denied a Payday Loan?
Overall, the key to having your loan application being approved by your private money lender is meeting their basic requirement criteria as listed on your lender’s website. As you follow these steps, your payday loan application may be approved which would give you access to the funds you requested.
