Understandably, no teletrack payday loan lenders like WithNoTeletrack.com tend to approve applicants who are likely to repay their debts on time. Thus, they devise affordability assessments with a view to shielding themselves against risky, untrustworthy borrowers. A recent bankruptcy, for example, is a common deterrent for payday lenders. However, a single rejection does not mean ultimate denial for life, and you may get a second chance once you review your application.
If a payday lender rejects your request, this may be due to a number of factors. It would be good to first determine exactly why this happened. Do not be discouraged. Once you identify the reasons, you may fix the problem and re-apply with increased chances of success. You may always contact your lender directly to enquire about their offers and eligibility criteria.
Aside from identity verification failures or employment requirements, past borrowing history is a major indicator of an applicant’s reliability. A common reason is the presence of agreements with other lenders. There are two measurements reflecting your ability to take on additional debt. These are debt-to-income and credit balances-to-credit limits (also known as credit utilization) ratios.
The lower these indicators, the better your chances of securing another loan. Otherwise, lenders may not be confident you will afford your minimum payments. In this case, you should put your borrowing plans on hold until you pay down all your balances to lower the ratios.
It is always better to pay all any old debts before applying again. Newly added debt emerging over a short period of time may be a red flag for many lenders. Your income must be sufficient to cover all your bills.
When you apply online, payday lenders may require a copy of the latest bank statements. Hence, if these show any dishonored payments – i.e., situations when your creditor’s attempts to debit from your account failed due to a lack of money in it – you are perceived like a potential risk.
Therefore, the presence of overdraft on your bank account may be a concern.
Another reason may be multiple payday loans you are yet to repay.
Naturally, as a borrower, you have to prove you will afford another loan, and any lender will access and examine your credit history.
Although requirements and policies vary, possible obstacles in the way of approval include:
- other currently outstanding payday loans;
- two or more payday loans received within the past 90 days, or;
- using new payday loans to repay older ones.
Any of the above might serve as sufficient basis for denying you a loan.
Therefore, whatever reasons cause a lender to reject you, do not be discouraged.
After reviewing the criteria and comparing the costs, you may select another loan option. Any failure to meet lender’s requirements does not entail denial for life.
Both bad credit and debt-to-income ratio may be fixed with a little patience and responsible practices. Knowledge and action are key to improving your chances to get a “yes” the next time you apply.