Reasons Why You May Get Denied for a Payday Loan

Did you apply or request a payday loan and got denied? Wonder why it wasn’t approved? Read through this list to find out the most common reasons a person is denied a payday loan. Note that bad credit is not a strong reason, but these other situations happen with some frequency. Here are the most common reasons.

Denied payday loan

The two most common reasons you may get denied for a payday loan are:


You do not meet the lender’s minimum requirements

Every payday lender has minimum requirements. Some of these are set by the state you live in which the lender is required to follow. For example, you must be at least 18 years of age to get a payday loan, or you cannot be an active member of the military. Check your state website if you want to learn more about any restrictions in your state. Also, note that some states do not allow payday loans.

You have requested a payday loan from multiple places

This includes more than one online website. Lenders have common databases for specific information and will know if you are applying in multiple places. If so, they will automatically reject your application even if you are qualified. This is because they don’t want you to get multiple loans as the default rate is very high when this happens.

Here are some other reasons you may be denied for a payday loan:

  • Your income is not stable – if your income has not been steady for 3 or more months, then you will often be denied a payday loan. This is sometimes true when you are self-employed.
  • You can not verify your income. If you are self-employed, you may be asked for bank statements or other documentation to verify your income is both stable and large enough.
  • You have an outstanding payday loan right now – most lenders do not make loans to consumers with an open payday loan.
  • You are currently on unemployment or welfare as your primary income. Lenders want to know you can pay back your loan, and those on unemployment or welfare are not considered a fair risk.
  • You filed for bankruptcy recently. If it has been some time since you filed, this will probably not be a factor as your steady income and job are far more important.
  • There are recent overdrafts on your bank account. This is a red flag to lenders that you are more likely to fail to pay them back on your next pay date.
  • Information on your application is misleading or untrue. If you are not completely honest on your application, most lenders will reject a payday loan for you. They assume if you lie on your application, you are too high a risk to lend to.
  • Very poor credit score. Most people with bad credit can get a payday loan, but if your credit is horribly poor, they will usually deny a payday loan to you. This is because a super low score means you probably have several of the reasons stated above that are true.

A high percentage of applicants are approved for payday loans but certainly not all. If you are denied, be sure to ask family and friends for help. If you already did so, then check for local support services in your city. There are agencies and others willing to help you with financial planning and to improve your score as well as other related services often for free.

Last, if you applied for a loan on a weekend or holiday, there is a chance that you will qualify on a weekday. Why? Because many lenders do not work on holidays or weekends, so your odds of approval on weekdays are higher.

If you are in need of emergency cash, request your emergency payday loan today from the payday loan business with more than a decade of experience and over 100 lenders waiting to serve you!

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Robin Williams

Robin Williams is the General Manager at CashOne, a reputable financial services company that helps consumers tide over their short-term financial crises. Our fast, convenient, and secure online loan application eliminates the unnecessary hassles or time required to procure payday loans online.

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