Avoid a Payday Loan If You Are In These Five Situations
Most of those who apply for payday loans in Australia or any other country do so because they have an expense that needs to be immediately paid. The most significant benefit of getting a payday loan is convenience.
Lenders understand that you need money immediately, and they have a hassle-free application process. However, there are a few situations when your payday loan application can be denied. Do you know the future of business is digital?
In this article, we look at the situations when you should avoid a payday loan.
You Have More Than Two Existing Payday Loans
The chances of getting a loan if you already owe one are very low. Lenders can see that you have a loan on your head and won’t approve for another.
While you apply for a payday loan, the lender will determine if you have any other payday loans that you’re repaying currently, if you’ve taken out more than one payday loan in the past 90 days or if you are using this payday loan to repay another payday loan.
Also, paying off two payday loans on your next pay date may be too much of a strain for your budget. It is wise to take out one short-term loan at a time; else, it will be a great burden for you.
If you are not receiving any pay from employment, there are very few chances of your loan being approved;many lenders will question your ability to repay the loan. However, there are few lenders who consider unemployed applicants.
In the case of unemployment, your eligibility entirely depends on the lender’s criteria, whether you receive Centrelink payment or not, what payments do you receive and your general financial condition.
Without a stable income, you may be seen as a risky borrower, and that can be a considerable reason for the rejection of your application. So, check the lender’s policy carefully before applying for a payday loan while you are unemployed.
Misleading Information on Your Application
You might want to make your applicationattractiveas possible by exaggerating your income. You could selectively leave information off of your application.
If you do this, there’s a high chance that the lender will find out and deny your payday loan.
You Don’t Have Verifiable Means of Income
Lenders need to verify the means of your income and your current financial situation. Thus, being paid in cash can cause problems. If the lender is not able to verify your income, there are high chances of your application being rejected.
For the lender to verify your income, you must supply to us 90 days history of your current bank statement, up and to the day of application.
If you are paid in cash, you must deposit the cash you receive as pay in your bank account each pay cycle. If you don’t deposit your pay, you will have to look for lenders who can verify your income through payslips.
Make Sure You Meet the Minimum Requirements
Before you apply for a payday loan, you should check if you meet the basic requirement. Age, citizenship verification, income, employment, and residency requirements are usually the minimum criteria.
Your age should be 18+, and you should be an Australian citizen.If you don’t meet all these criteria, there are chances of being rejected.
Additionally, many lenders have a scoring system, where points are provided to determine your eligibility for a payday loan. If your score is not high enough, your request may be denied.