A paycheck advance is a good way to get extra cash when you fall short on funds before you get paid or an unexpected expense rears its head. While these loans typically have fewer qualification requirements than traditional loans, there are things that may prevent you from getting approved. Here are two reasons your application may be denied.
You Don't Meet the Repayment Requirements
When evaluating whether you are capable of repaying the loan, the lender looks at a couple of things. First, the company will look at your income to see if you make enough money. Most payday loan lenders have a minimum income requirement you must meet to qualify for a loan (e.g. $800 per month) and base your loan amount on how much you make. If you don't make enough money to repay even the smallest loan, the company may decline your application.
However, payday lenders also look at how often you get paid. While technically the loan isn't due until the next time you get paid, the company may have a maximum number of days the loan can be outstanding (e.g. 14 days). If your paydays fall outside the lender's established due dates (e.g. you get paid once a month), you may not be approved.
Luckily, with the vast number of paycheck advance companies online and offline, it is possible to find a company who may have low income requirements and whose due dates matches your pay dates. Do a search online for information about companies that meet your specific needs.
You Are a Member of the Military
Another reason you may not be approved for a payday loan is you're an active member of the military. Payday loans to service members are tightly regulated by the government. Yearly interest rates for military members can't exceed 36 percent (the average payday loan interest rate is 400 percent) and some state laws have made it difficult for lenders to collect on past due accounts. Unfortunately, this makes military members unattractive to some companies.
However, there are lenders who do cater to service members. If you can't find one in your area, an alternative is to have your non-military spouse apply for the loan using his or her income. Be certain you can pay the loan back as agreed, though, as defaulting on the debt can have an adverse impact on your job.
For more information about qualifying for a payday loan, contact a lender near you like Cash Depot Inc.