It’s easy to get cash loans online if you have a computer or a phone with an Internet connection. So many people think: they just fill out the application, enter personal data and sit back comfortably to hear “Your loan is approved.”
In fact, everything is not so easy: online lenders, just like banks, have learned to check potential customers for solvency. Despite very limited tools for verifying the information about the borrower, it helps microfinance organizations to take a weighted decision to refuse same day cash loans.
The result – you were denied a cash loan and have a question “what to do?” It seems that you have done everything correctly.
Is it possible to determine the reason for declining a quick cash loan?
Act the following way: to get approval next time, you need to find out why your loan was declined. Attempts to convince the lending company or telephone operator that this loan is very important for you in most cases do not bring results. The law does not oblige lenders to argue their unwillingness to cooperate with you.
There are 2 options left:
- Submit a written application to the office asking them to explain the reason for declining a payday loan;
- Conduct an analytical study and make a conclusion.
The first option is more appropriate, but online lenders do not hurry analyze your situation and write a response. Either you have to spend time on multiple trips to the office to get the truth, or just abandon the idea. In the second case, you have all the chances to clarify the situation, without employees of the microfinance institution.
10 reasons lenders decline online cash loans
There are 2 factors that influence the decision of the company: the objective – coming from personal characteristics, and “human” – when you entered incorrect personal information, for example, SSN number.
The second aspect is subjective, therefore it can be easily corrected. It is only necessary to contact the lender, and the decision may change radically.
Below you will see a list of 10 most common reasons why your loan is declined:
- Error(s) when filling in personal data: it happens often, and typing errors are made by both employees and customers themselves;
- Bad credit history and current debts are the most weighty argument against you. If this is the only reason for a loan decline, you have chosen the wrong company. Read carefully terms of an online lender. Some companies develop special strategies for cooperation with debtors, giving them cash loans with no credit check and improving their credit score;
- There is no account in social networks or it is unsatisfactory. In this case, you may also find another lending company and get cash loans now;
- The client has an uncovered conviction or he is under investigation: one of the most weighty stop-factors. You can try applying to another company, which may not check this aspect;
- You are a draftee: you can convince a specialist that you will return a payday loan. It will be difficult to do this. Note: If you’ve reached military age, but unfit for military service, you will have to show military ID or another document as evidence;
- You are not employed for a long time. Choose another company that turn a blind eye to your employment and income;
- You are registered with a mental health center: 100% rejection. No comments;
- Debts for utility bills or mobile communication: some lenders choose this way of checking customers. Pay off all debts and take payday loans online without any problems;
- You lose your SSM or driver’s license or someone used it to get payday loans online. Only the court can help in this situation;
- The budget of the family does not allow you to take 1-hour payday loan: the denial, in this case, is for your benefit.
To minimize the probability of a loan declining do the following steps before submitting an application:
- Submit a request to three major Credit Bureaus and find out which credit history you have;
- Make all delayed utility payments;
- Fill out the questionnaire accurately, enter only valid data;
- Answer questions about employment, wages, marital status honestly: documentary evidence is not required here, but any issue may seem suspicious and affect the decision.