Why Was My Cash Advance Application Denied?

Posted on Thursday, September 10th, 2009 at 5:25 pm in General Payday Loan Tips, Helpful Payday Loan Info, Miscellaneous Cash Loan Info

When you apply for a cash advance or payday loan, your chance of being approved will depend on a number of factors. Some of these are determined by the laws that apply in your home state, while others depend on the lender’s own rules. Although most people who seek a cash advance are granted one, there are always some who are turned down by the lenders. There are also quite a few cases where applicants are given a loan, but for a lower amount than they wanted.

So what are the reasons you might be denied the cash advance you’ve applied for? Well, for a start, you might not meet the most basic requirements, which say that you must be at least 18 years old and a US citizen. You also need to have a bank account of some kind, either a savings or checking account. That said, there are reports of payday lending companies that don’t check IDs properly, and that grant advances to illegal immigrants – who obviously don’t have American citizenship.

Another basic rule for getting a cash advance is that you need a monthly income of at least $1,000. If you don’t make at least this much, you’re very unlikely to be approved since even lenders that bend some of the other rules want to make sure their customers have enough money coming in to keep making their payments.

Your income doesn’t necessarily have to come from a job, by the way. Payday lenders are usually willing to consider you if you get regular payments from Social Security or in the form of child support or alimony. In some states there are cash advance companies that even accept unemployment as an allowable source of income, just as long as you’re bringing in enough to meet the $1,000 threshold. You should be aware that your income can play a part in how much you can borrow, though. So if you didn’t get as much as you applied for, it might be because your earnings are on the low side. Also, first-time customers usually can’t borrow as much as returning clients.

If you’re working and have been in your current job for less than four to six months, you might have a hard time getting your cash advance approved, depending on the lender. This can also be the case if you’ve recently moved to a new address. If you’re seeking quite a large payday loan, the company might do a quick credit check to see if you’ve filed for bankruptcy in the past year, or if you’ve gone bankrupt more than once. If so, you might not be able to borrow from them. They won’t turn you down on the basis of poor credit alone, however.

Another reason your application could fail is if your bank account is newly opened, or if you have bounced any checks during the past month. In addition, you need to make sure you’re not breaking your state’s rules about the number of cash advances you’re allowed at any one time.

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