Refusal Personal Payday Loan – Reasons Most Frequently Referred
When unforeseen events or difficult financial situations arise, it is reassuring to know that banks or financial lending institutions can always be used to get out of a bad patch .
Yet, every year, unlucky people have the misfortune to see their application for personal payday loan without credit investigation or credit advance refused by the institution to which they had turned. That’s when they ask: but why was I refused?
In this article, we propose to explore the reasons most often cited to justify the refusal of a personal payday loan.
The reasons for refusing personal payday loans most often invoked
1) There is an error in your credit report
Nobody is perfect, not even your banker! Errors in credit files are more widespread than one might think. Moreover, it is more than a quarter of American taxpayers who have had or will have in the future an unjustified blame taint their credit.
The most common errors are erroneous notices of non-payment or deferral of payment and “closed” accounts that are still active.
That’s why even in comfortable financial times, it’s good to occasionally take a look at the “health” of your credit report.
2) Your credit report is too thin
The legend is unfortunately true, delaying the use of credit in your life as a consumer may ultimately prevent you from taking out a personal payday loan. See your credit report as a screening report and the agents of financial institutions as scouts. Before lending to an individual, lenders like to know the facts of the loan and without access to a sufficiently large credit report, a loan agency can feel chilly and question your ability to pay your debt once you arrive at a more fertile economic ground.
That’s why it’s important to start building your credit report early in life!
3) You have too many debts
Institutions that provide personal payday loans are most highly strategic in the way they lend. If your household has already accumulated a lot of debt, an institution might feel that a loan granted to you will have a lower chance of being repaid at maturity.
Be careful, several agencies rely on your household’s credit file, which means that even if you have no debt on your behalf, if your spouse has several debts to his credit, a personal payday loan could to be refused.
The refusal of a personal payday loan: a discouraging test, but not essential
personal payday loans can be contracted for a multitude of reasons, we also offer an article informing you about the best uses of a personal payday loan.
However, being denied this advance can be very discouraging. Be aware, however, that some institutions offer bad credit personal payday loans to individuals. It is therefore possible for you to get a new chance by trying to do business with them.