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There are reasons why someone might be denied for a payday loan. Not everybody is eligible and certain criteria has to be met in order to qualify. Payday loans offer a quick and easy solution for borrowing the money you need over a short period of time. Payday loans are widely available and allow borrowers with poor credit scores to receive the money they need, however this doesn’t mean everyone is eligible. 

What is the criteria to get a payday loan?

You must be a US citizen – You must be a legal citizen of the US and be able to prove it with documentation. If you cannot prove that you are a legal resident, your loan may be denied.

You must be over 18 years of age – For legal reasons you must be over the age of 18 in order to obtain a loan, this is why we ask you to give your birth date as part of my application process. If you are currently under the age of 18 you will not be able to obtain a loan and your request will be denied.

You need to own a mobile phone – Because your lender may need to contact you to confirm your details or request further information, you will need to own a mobile phone which you can answer after applying for a loan. If your lender is unable to contact you your loan may be denied.

You must have an income of at least $800 per month – In order to qualify for a payday loan you must have an income of at least $800 per month, although this does not necessarily need to be from working. If you are receiving $800 or more in benefits, this is also an acceptable form of income. However if you are not able to prove that you received more than $800 per month your lender will deny your loan on the basis that you will not likely be able to keep up with repayments.

You must  be able to afford repayments –  As well as considering your credit score and your monthly income your lender may deny your claim on the grounds that they feel you cannot afford to repay the loan. This may affect the amount you are allowed to borrow and for how long although there is always the chance that your loan will be denied.

You need to have a checking account to receive funds – If you don’t have a checking account there is no way for you to receive your loan, there is no option to receive your loan in cash and you must have a checking account to insure that the loan can be paid back. If you do not have a checking account currently your request for a loan will be denied.

You don’t need a good credit considered – The one thing that won’t necessarily mean your claim is denied is having a bad credit score. Those with a poor credit score can apply for a payday loan and are often approved. A poor credit score is not a barrier to borrowing when it comes to payday loans. However, there are certain instances where a lenders decision can be affected by a very bad credit score. If you have a long history of not repaying loans it is possible that your loan will be denied.

If I am denied for a payday loan what are my other options?

If you’ve been denied for a payday loan that are other options available to you. Firstly you could ask for an advance on your next paycheck. This would mean getting in contact with your employer, explaining your situation and asking for all or a part of your next paycheck early. If you are receiving benefits, it is also possible to ask for an advance on your benefits.

Another option would be to open a credit card. Opening a credit card would mean having access to funds quickly, and then having to pay them off at the end of the month. it is her important that you keep on top of your credit card payments, as the bills can mount up.

Being denied for a payday loan could mean but it’s time to seek the support from a financial adviser or debt adviser. If the reason that you have been denied for your loan is poor credit or large amounts of debt it might be time to seek support.  Many services even offer free financial advice for those in need, so if you weren’t able to get your loan it might be possible, with the help of a financial adviser, to make your next paycheck last longer.

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Charlotte Diffey

Charlotte is an expert writer with lots of experience in the financial world. Read her articles for useful guides on payday loans and advice on how to boost your savings.