Requesting a personal payday loan can be very convenient to avoid other forms of financing and to immediately obtain the money useful for shopping or facing situations of economic scarcity.
Why can a payday loan be refused?
However, banks are not always inclined to accept payday loan requests from their users, even if they already account holders at their institutions.
In general, it can be said that banks refuse the payday loan request when the applicant does not demonstrate his creditworthiness, that is when he cannot guarantee to be able to repay the payday loan in the agreed forms.
This guarantee is given by criteria established from time to time by the banks themselves. It also depends on the size of the loan and the amount of money you intend to get.
In fact, for a low loan, some institutions accept minimum guarantees, such as the existence of an employment contract lasting longer than the loan installments.
For more substantial loans, such as that for the purchase of a house, permanent employment contracts will be requested, the applicant’s profitable credentials will be examined, as well as the guarantors that can take over in the event of non-payment of one or more installments.
So it is good to know first what criteria you need to have so that the bank does not refuse a loan.
Most frequent conditions that lead to a bank’s refusal of the payday loan
- insufficient income. As explained above, one’s income status does not promise security and stability for the repayment of the loan in a timely and precise manner;
- bad payers. If in the past, you have accumulated delays during other ongoing loans, you will certainly be included in a list of bad payers shared by all the credit institutions. This greatly affects the possibility of obtaining a loan, since you have already been reported as bad payers;
- multiple financing. The bank refuses other loans if you already have mortgages or loans in progress;
- I refuse within 30 days. After a refusal you cannot apply for a loan for 30 days;
- problems with the guarantor. If your guarantor is a bad payer or does not have adequate income and capital conditions, the loan will be easily refused.
Check that all documentation and income status are sufficient to easily obtain a payday loan before applying for it.
To do this, ask for help from Maximo Michelle agent for Lite Financial, Dredem group and his team of professionals, who can prepare with you all the documents necessary for the loan application.