Best cash advance lenders work hard to keep up with all of the regulations set upon them. A lender’s reputation is at stake every time a predatory lender enters the news. With all of the legislation trying to regulate the loans, there never seems to be a lull in loan applications. Why is there such commotion within the short-term loan industry?
It’s true! There are online cash advance lenders who reject loan applications. One of the most common causes for rejection is that the lender does not loan in the state the applicant resides in. This may be because state regulations ban the loan altogether or have capped the loans which makes business not profitable. Some lenders choose not to pay for licensing or opt to keep their lending in certain areas.
Another reason for denial is failing qualifications status. Online cash advance lenders set certain criteria which must be met for any applicant to achieve approval status. With the reputation for being a predatory lender, it may come as a shock to some that there are lenders who will reject an opportunity to fund a loan. These short-term loans are risky enough without processing credit checks. There are many lenders that set standards for loans.
An applicant must:
*Have a functioning bank account in good standing. Overdraft fees are not a good sign of a person who manages money well.
*Receive their paycheck by direct deposit. It shows proof of steady income.
*Set income limits vary among lenders.
*Provide accurate and current contact information.
During the verifying process, there may be other qualification assessments made. Each lender has their set of “rules” to follow. Many lenders will not approve a loan when other short-term loans are currently unpaid or were defaulted upon in the past. Just because the direct cash advance lender does not pry into the credit bureaus report, it doesn’t mean that they want to process a loan with someone who has had problems paying off short-term loans in the past.
Many states have regulations which will not allow a person to have more than one or two of these cash advance loans out at on time. Some regulations will not allow a person to use too many in a year. These state regulations are made to protect the residents. There obviously was evidence of too many residents failing financially when using short-term loans in the past.
It’s easy to try to blame he cash advance lenders for these financial difficulties, but in order for someone to be applying for a high interest loan, there has to be some financial problem fueling the need. Anytime a loan gets processed and the borrower does not have the money to return payments on the original due date, these low fee cash advances online become more expensive.
If you are trying to apply for a loan and get denied, assess your situation before looking to another lender. Ask yourself why or better yet, call the company and find out why the application was rejected. You may find yourself thanking the best cash advance lenders for protecting your accounts from further problems.