When a person desperately needs funds, the only thing more vexing than being rejected for a loan is not knowing why the rejection occurred. Denials are actually somewhat of a good thing, as they indicate that a lender is reliable and won’t give money to just anyone. In this guide is a list of reasons why borrowers are denied by companies like MaxLend Loans.
If a borrower has no recurring income from a stable job, they’ll find a limited number of lenders to work with. Few companies consider applications from unemployed borrowers, and eligibility depends on the company’s standards, the borrower’s finances and whether they get government assistance. In short, an out-of-work borrower may have a tough time getting approved.
When a borrower applies for a short-term or installment loan, they must provide a copy of their most recent bank statements. If there are dishonored payments or bounced checks, the application may be denied. An overdrawn account is a red flag to lenders, and borrowers should consider this when applying for an online cash advance.
Creditors assess a borrower’s finances to determine whether they are a substantial risk. If there’s a bankruptcy within the past year, the lender may see a borrower as being too high of a risk.
Not Meeting Minimum Requirements
Before applying for a loan, the borrower should check the minimum standards and determine whether they meet them. Income and residency requirements, employment history, age and military status are generally used to determine which borrowers a lender may accept. If a borrower doesn’t meet all of a lender’s standards, his or her application will be denied.
Multiple Cash Advances in the Past
When someone applies for a short-term loan, creditors want to know whether they can really afford it. In making that determination, the creditor will examine the borrower’s payday advance history, current loan status and whether the funds will be used to repay another loan. If any of the above situations apply, the application will be declined.
Before seeking a cash advance, the borrower should review not only the eligibility criteria but the fees, terms and features of the loan to ensure they’re making the right choice and the application will be approved.