Lots of people turn to payday loans for their short term credit needs and in most cases, they are successful. But not always. For some, the application will be declined and this could be for many different reasons. The most common reasons for a loan falling through are the following:
You do not earn enough
When reviewing your application, if you do not earn enough money, your application will be declined. Most loan providers will stipulate the minimum weekly or monthly wage you need to earn to qualify for application. If your wage value cannot be verified, or if upon checking it turns out that you earn less than the threshold you will be rejected. This is for your own safety and loans need to be provided responsibly. If you are struggling but cannot obtain credit, you should really seek debt advice or counselling to find a suitable solution.
Your application is missing information
It’s easy done, to miss a field or a tick box and most people at one time or another have done this I’m sure. If it is as simple as that, your application may not be outright rejected but put on hold until the missing information is completed. If the information is not confirmed within a given time, then the application will be rejected and the process will need to be started again from scratch.
Your current credit management is poor
While some payday lenders do not check your credit rating, it can be in your interests to choose one that does, for the sake of responsible lending. Those that do check, tend to look at your current financial management rather than your previous history. If you are currently debt heavy and missing payments then you are more likely to be rejected than if you are managing your current finances well.
Your personal information cannot be confirmed
Make sure your address information is up to date and that the credit reporting agencies are aware of this. The easiest way to do this, is to make sure you are registered at your current address on the electoral roll. If there is any doubt over who you say you are, or your residency information, you could be rejected.
Your employer cannot be contacted
Many lenders require contact with your employer to confirm personal, work and income information. This is how they maintain security without the need for lengthy administrative processing with documents travelling back and forth. If your employer cannot be contacted, then it will delay the process until they are. If after a given time they still cannot be contacted the application may be rejected and will need to start again.
While these are the most common causes for applications falling through, there are many others. Different types of loan will have different qualifying criteria and processing policies, but for payday loans, these are the big ones.
Save My Bacon is one of New Zealand's most trusted and popular payday loan service providers. You can apply for our loans on the calculator below. Why not see what we do and review the following links if you would like to find out more about SaveMyBacon and how our loans works.
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