While the concept of getting a payday loan or cash advance may seem like a very simple process that cannot go wrong, you would be surprised to know that it is possible to be rejected. While the absolute majority of the people who apply for loans are approved, there are some circumstances that can lead your application to be declined. There are some things that you can do to avoid this situation, but knowing in advance what can cause your application to be declined can be a huge help in avoiding the situation.
First, in order to be approved for a cash advance you must have a checking account. Additionally, most cash advance lenders will not approve your account if it is a business checking account. The account must be a personal checking account, and your name must be listed on the account. In addition to having a checking account the majority of lenders require that the account not have a negative balance at the time of application. Many also require no negative transactions for the last 30 days as well, this means you account should not have a negative balance at all during that period.
Another common problem that can cause a rejection is not having a job. While a steady source of income can often be supplemented instead of a paycheck such as a monthly government check, most lenders are going to want to see a good steady source of income. If you have not been on your job long, you are typically not denied. However, having no income that is verifiable will almost always result in a rejection. Ensure that you have at least one pay stub that you can take with you to apply. Be aware that many payday lenders do want to see more than one pay stub, you can call ahead and ask about their exact policy in regards to pay stubs.
Proof of residence is something that you are going to need. The payday lender is not going to be impressed that you live at the third house on the fourth road down the block past the brown cow. Instead, they are going to want something that is verifiable, such as a piece of mail, or even a copy of a lease. You must have something to verify your address in order for the payday advance application to be approved. Very seldom will an application be approved without a verified address.
The last major reason that can cause a rejection in your application is if you have had a cash advance before, and not paid the advance. Typically, cash advance lenders report bad transactions to a central database that allows others to view any loans that you have defaulted on. If you have been reported as defaulting on a loan previously, the chances of having a loan in the future approved is typically quite slim. If you have any doubts about this, check over your records carefully to ensure that you keep track of all payday loans to ensure that you are keeping track of all payments. If you let a loan default it can also be put on your credit as well, which can give another red flag to any cash advance lenders that do check credit as well.