Sometimes, we get so tied up with our expenses and try to pick up ourselves from all the stress of getting our finances in order. There are instances that we cannot avoid when our expenses are more than what our income can cover. During these times, we try to recover from the financial problems that we face and one way of doing it is by getting a payday loan.
Payday loans help. It may not be something permanent, but it helps you get by. The greatest blow of all is when your application for a payday loan gets rejected. Here are a few of the reasons why payday loans get rejected so that you can find ways to avoid it next time you find yourself short on expenses.
- You have to many payday loans rolling over.
One reason for getting rejected is existing debt. Having several payday loans rolling over can push a lender or the bank to deny your application for a loan. If you already have existing debt that are either rolling over or in default, the lender deems that this next loan would result to a same fate.
- You are not employed and no source of income.
The main source a payday loan expects you to get from and settle the debt is from a steady source of income, usually your salary. Without employment, there is no guarantee for the payday lender that you have a source of income from which you can get your loan from.
- You have bankruptcy on your record.
Despite of a payday loan not requiring to review your credit score, having a record of bankruptcy speaks of how you handle cash or credit. The lender doesn’t need to go beyond that information to know that you have a bad way of handling your debts.
- Your salary is in cash.
When you have outstanding loans and get paid with cash, there is a high probability that you manage your finances poorly and most probably, you loose all your cash before it gets to your lenders. Lenders will always watch out for their business and make sure they can recover the money you borrowed.