Understanding Why Your Payday Loan was Denied

Payday loans are great financial instruments to get you through those hard times. However, not every will get an approval. Find out why here.

Are you wondering why your Kingston payday loan was denied? Certain reasons result in a denial despite making promises that you are able to pay the interest and principal of the loan on time.

Valid Proof of Employment
A Kingston payday loan may require less paperwork and personal information compared to traditional loans, but you still need to prove that you have a stable job that would enable you to pay for the loan. A lender will not risk lending money to someone who cannot pay it back. Make sure you have some form of employment or source of income to get an approval.

Previous Filing Application for Bankruptcy
Payday lenders do not usually run credit checks, but they still want to know the financial capability of the person they will lend money to. Bankruptcy is a red flag that raises several questions about how you manage your finances. If you filed for bankruptcy within the past year, the likelihood of denial is significantly higher. It normally takes at least one year to recuperate from financial troubles. 

Unemployment 
This is similar to the first reason, but in some cases, a lender sets a length of time for employment to approve an individual’s application for a payday loan. In most cases, creditors want their applicants to be employed at least for the past six months. You have to look for companies that allow these circumstances to approve your loan application.

Failure to Meet Net Income Requirements
Certain lenders set a monthly net income before they approve a loan application, failure to meet these requirements will result in a denial. Most payday creditors ask applicants to at least make $1000 a month. If you make less than that amount, your financial capability to pay it back becomes questionable.

Unpaid Loans
A creditor wants to make sure you have no other outstanding pay loans or returned checks because of insufficient funds. You have to pay off other loans to have your application approved.

Unable to Verify Identity
Your Kingston payday loan application might be denied if the creditor cannot verify your identity. This occurs when an applicant uses a fake ID or provides invalid personal information. Lenders will deny any applicant whose identity they cannot verify.

These reasons will reduce the likelihood of an approval; make sure you make enough money to meet requirements and not have any other outstanding loan.

One reliable Kingston payday loan provider that can offer you fast and easy payday loan application is GoDay. To qualify for a loan, it is best to find out what their requirements are.

 You can find out more about this Kingston payday loan company by visiting https://goday.ca/kingston.aspx