Responsible cash advance lenders will do their best to verify an applicant’s information and inspect the bank account prior to approval status. Each lender will have their own set of qualifying standards, but in general, the outlook should be the same. A customer will need to be able to afford to pay back the loan. Those lenders that do not inspect an applicant’s information carefully are not following best practices. Many of these lenders would fall under the predatory lender category.
Don’t be offended if cash advance lenders turn you down.
If a lender rejects your application due to affordability, what do you do? Some applicants will send their application to another lender while others may try to find a new solution for their money emergency. For those of you who do get applications rejected, it may help you to understand why. Best cash advance lenders online take each application seriously. The process is done to protect the business as well as the applicant.
- Your monthly take-home income may not support the payoff. The loan amount should only be for a fraction of your monthly income. Requesting a larger portion is not acceptable to a reputable direct cash advance lender.
- If you don’t have direct deposit, there are no scheduled deposits to insure on-time payment. The short-term loans schedule the payoff around your pay cycle. It would be sad to fall behind because you couldn’t get to the bank on time. Expecting direct deposit will protect the lender’s risk as well as your income from paying extra in NSF and overdraft fees.
- When your paycheck is deposited, is the money gone with a day or two or does the account show a steady payment process throughout the month? Remember, a short-term loan will expect full payment in about two weeks. If the money comes out quickly for other payments, which one will get paid?
- Do you owe money to other direct lenders? How is your history with other fast cash loan lenders? Are you still paying towards those loans? Defaulted on any? Can you actually afford to take out one more? Sometimes applicants are desperate for quick cash and don’t think about the truth of how far income can realistically be stretched. A good lender will be looking out for you.
If a lender rejects your application, try to understand why. It may inconvenience you to not receive the quick cash, but it might save your next paycheck lots of discomfort. You don’t want to get caught in trap of needing to borrow more money in order to cover the rest of the month’s expenses.
Application information must also be verified. Phone numbers and employment status is important. Lenders will want to know that the phone numbers are those which will connect to you. They will also want to make sure you are still employed. No one wants to embarrass an applicant nor do they want to get anyone in trouble, but the loans are risky enough without credit checks. Verification procedures are handled professionally and anonymously by respectable online cash advance lenders.
