Getting a payday loan can sometimes be the only option we have when we come short of cash to cover for our monthly bills. Also why its also good to buy from online shopping store using short term loans & credit cards despite of our financial crisis. However Payday loans help us getting through the financial crisis that a regular employee must go through. But sometimes, even a payday lender wouldn’t want to extend a hand in covering your financial obligations.

Payday loans are one of the easiest to avail. With quick, simple, and easy loan application process, a payday lender can grant a loan within a day. In some cases, a rejection is given rather than an approval. Here are a few reasons why a payday loan can be declined despite of its easy application.

  1. Too many payday loans remain unpaid and rolling over.

In short, you are in debt. Like any other loan, the lender will always consider if you are financially healthy to pay for a loan. Licensed lenders will make sure that your debt to income ratio is sufficient to show that you are financially capable of paying the additional loan.

  1. You are looking for a job.

If you are searching for a job and have no consistent income, a payday loan will be difficult to get (even impossible!). Payday lenders depend on getting the short-term loan paid immediately to earn. Without an income coming in, the risk of them getting paid is very little.

  1. Bad payments made and rejected collections by your bank.

When collection will pose a problem for the lender, they will most probably decline your loan request. Any indication by your bank that there had been rejected collections, lenders will not extend their payday loans. A payday lender is fully dependent on earning from short term loans they provide and any collection issues will be a big factor for approval.

  1. Previously recorded as a default client.

If you have been reported to have been a client of any bank or lending institution, you will most probably be rejected of any type of loan. Lenders would want to deal with someone who they can trust to pay. If your records show being in default, there is a big possibility you don’t get approved.

  1. Length of Employment

If you are a new hire, there is a high risk that you can easily transfer jobs or not get regularized. These are some of the few things lender look into.