The lender rejected your loan application? Do not panic! You still have a chance for payday loans at other loan companies. Check why you were denied a loan beforehand. We advise you on the most common reasons for rejecting a loan application and what to do if it affected you as well.
Although loans can be easily obtained at non-bank companies, this does not mean that anyone who submits an application will get it. In addition to the guidelines imposed by law (customer creditworthiness control), loan companies have their own rules according to which they choose their clients.
Therefore, the reasons for the rejection of instantaneous applications should be seen both in the financial aspects of the borrower and in formal matters related to the regulations of the given lender. Considering these two factors, we have distinguished the seven most common reasons for rejecting a payday application.
Why was your loan declined?
- You have low creditworthiness – if you are late or do not settle your financial obligations at all, your data may end up in debtors’ databases. Loan companies cooperate with such registers and on the basis of their data they are able to determine whether a given client is solvent and whether it is worth trusting him at all. For some lenders, a negative customer entry alone is already a reason to reject a loan application.
- You have no stable income – the lender must be sure that you will be able to return the money you borrowed. So if you don’t have a regular income, you probably won’t be able to pay the liability on time. You may not be able to give it back at all.
- Therefore, lenders are reluctant to grant loans to people who do not have a permanent source of income. Lack of income may therefore be the reason for rejecting your loan application.
- You have an active loan in a given non-bank company – as a rule, the lenders reserve the right to have only one active loan at a time. An active loan is the one you repay or the one you are overdue for. What’s more, there are many sister loan companies on the non-bank market. By borrowing in one of them, you cannot simultaneously use the services of the sister company. In this case, your loan application will be automatically rejected.
- You do not meet the requirements set by the company – each loan company decides how old its borrowers should be. For some lenders, the minimum client age is 18, but for others it may already be 23. If you do not meet the age criterion of the loan institution, you must consider rejecting the application.
- You have provided false data in the loan form – these types of errors most often relate to overstatement of received remuneration or concealing information regarding debt. Lenders are able to verify such information very quickly, and false data is immediately the basis for rejecting the loan application.
- You have incorrectly completed the registration form – typos in personal or contact details are common mistakes. Even if you check the form twice before sending, something may always escape your attention. Unfortunately, these types of errors may also disqualify you from the loan application process.
- You haven’t confirmed your identity – every lender must be sure that you are the person you claim to be. Therefore, it will ask you to perform a verification transfer or use a special application confirming your identity. If you do not do this, your loan application will be canceled.
The lender rejected your application? You can still do it!
Knowing the reasons for rejecting an application, be sure to check which of them occurred in your case. First, analyze your creditworthiness by monitoring your history in the debtors’ databases. A low credit rating is the most common reason for rejecting loan applications.
Remember, however, that a negative response from one loan company does not yet bar your competition. So try to apply for payday loans elsewhere. You may have more luck with another loan company.