Top 7 reasons you were denied for a payday loan |

Top 7 reasons for payday loan rejections

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Rejected by a lender? Here’s some of the common reasons they denied your application.

Wondering why your application wasn’t approved? We take you through some of the most common reasons why a lender may have decided not to work with you.

1. You have too many existing payday loans

When you apply for a payday loan, lenders want to determine whether you can afford the loan, so as part of your application they will look at your current financial situation.

  • If you have any other payday loans that you’re currently repaying.
  • If you’ve taken out more than one payday loan in the past 90 days.
  • If you are using this payday loan to repay another payday loan.

For some lenders, if any of the above is the case, that’s enough reason to reject you for a loan.

2. You’re unemployed

If you don’t have a regular source of income, many lenders will question your ability to repay your loan. While there are lenders who consider unemployed applicants, your acceptance usually hinges on a source of income–whether that be steady work or government benefits. If you don’t meet these criteria, it may be why you were rejected.

3. Welfare is your only source of income

Although there are lenders who accept borrowers on welfare, you’ll generally need supplementary income. If you only have welfare payments, this is likely a reason for rejection.

4. There are overdrafts on your bank account

When you apply for a payday loan online, lenders may ask to see a copy of your latest bank statements. If your history shows that you’ve dishonored payments–that’s when a creditor has attempted to debit from your account and there wasn’t enough money–you look like a risk, and a risky application is more likely to be rejected.

5. You’re paid in cash

Being paid in cash can make it difficult for you to be approved. Lenders need to be able to verify your income, usually through your bank statements. If you don’t deposit the cash you receive into your account each pay cycle, then lenders won’t be able to verify it. Instead, you’ll need to find a lender who is willing to use your payslips as verification. If a lender couldn’t verify your income, this is a likely reason your application was rejected.

6. You have a bankruptcy on your record

Lenders use your financial situation to determine the risk in lending to you. If you have a recent bankruptcy on your record (within the past year), you may be flagged as high risk and rejected. However, there are still options for people with bankruptcy on their record.

7. You didn’t meet the minimum requirements

Before applying for a payday loan, you should make sure you meet the minimum criteria listed on the lender’s website. These criteria are set to establish who the lender will accept. If you didn’t meet all of the criteria, this is likely why you were rejected. In addition, lenders also have internal scoring systems where they allocate points to help determine your eligibility. If your score doesn’t add up, your application is unlikely to be approved.

Compare lender-connection services

These providers work to help connect you to a short-term loan you’re likely to qualify for. Submit your information and potentially receive loan offers from a network of lenders.

Rates last updated February 20th, 2019
Unfortunately, none of the short term loan providers currently offer loans in your state. Learn more about short term loans in your state to find an alternative.
Name Product Product Description Term of Loan Turnaround Time Max. Loan Amount
Slam Dunk Loans
Potentially get approved for a short-term loan through this lender-connection service, even with poor credit history.
Varies by lender
As soon as next business day
LendYou Short-term Loans
Apply online with this loan-connection service offering unrestricted short-term loans with fast turnaround.
1 business day
CashUSA Installment Loans
A connection service for quick cash loans up to $10,000.
90 days to 72 months
As early as 1 business day
TriangleCash Payday Loans
If you have bad credit or no credit history, apply to be connected to a network of lenders for funding at rates that vary by state.
Varies based on lender
As soon as next business day
$1,000 Payday Loans
Whether for emergencies or unexpected expenses, this provider may be able to connect you among its nationwide network of lenders.
Up to 12 months
1–2 business days

Compare up to 4 providers

Bottom line

There are multiple reasons why you might have been rejected for a loan, but don’t be discouraged. You can review your application to make sure you didn’t miss any information or work through a lender-matching service. Not every loan option is right for you so be sure to consider all your options and compare the costs before applying again.

Don’t forget, there are other options when you’re in need of money

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

8 Responses

  1. Default Gravatar
    VonSeptember 25, 2018

    I was denied on my payday loan. I don’t have any other outstanding loans, I pay on time every month. The money is drafted directly out of my bank account. This is money that I depend on. This is the first time this has every happened. Called the lender and they say it was due to Veritec system.

    • finder Customer Care
      JoshuaSeptember 26, 2018Staff

      Hi Von,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      I’m sorry to hear about your situation. Veritec is used by some stated to determine loan eligibility. It is a third party database system that helps lenders meet their state lending laws and protect consumers who are taking out loans. For this reason, some lenders greatly depend on Veritec to decide whether to approve your loan or not.

      If your application was rejected, you may try other lenders. However, it would be a good idea to first determine why you were rejected in the first place. When you know that, fix that problem and then, try apply for another loan. This way, you can increase your chance of getting approved. Most importantly, please review the criteria, details of the loan product and contact the lender directly to discuss your loan options and eligibility.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!


  2. Default Gravatar
    BrandonApril 2, 2018

    I’m starting a new job tomorrow and I need help get a loan.

    • finder Customer Care
      JeniApril 2, 2018Staff

      Hi Brandon,

      Thank you for getting in touch with finder.

      Since you are starting a new job, you may want to check out this link to see which lenders can give you a personal loan. There are some minimum requirements to apply such as:

      – you need to be at least 18 years old to be eligible to apply.
      – you may need to be employed full-time and you may need to earn a certain amount of income to be eligible.
      – your residence, you will usually need to be a US citizen or permanent resident to be eligible.
      – your credit history.

      If you are a casual and part-time employee, kindly refer to this link to know your loan options.

      I hope this helps.

      Have a great day!


  3. Default Gravatar
    helpMarch 3, 2018

    if you are denied a loan at a payday loan place can they legally keep your information?

    • finder Customer Care
      RenchMarch 13, 2018Staff


      Thanks for your inquiry.

      Yes, your information is secured and stored with them for their records. If you have provided your banking details, this process is encrypted and secured, your information should not be stored. There’s no need to worry and you may also contact your lender to further inquire.

      Best regards,

  4. Default Gravatar
    NathanOctober 12, 2017

    I keep getting declined for a loan.

    • finder Customer Care
      RenchOctober 12, 2017Staff

      Hi Nathan.

      Thanks for reaching out to us.

      I’m sorry to hear that you’re getting rejected when applying for a loan. I suggest not to apply for another loan without further checking it’s eligibility criteria thoroughly because getting rejected from a loan adds negative reports to your credit score.

      You can have a look on this guide for helpful tips on how to improve your credit score and understand how it works. While on this page, you may compare loans that you may compare if you have a bad credit.

      Hope this helps.

      Best regards,

US Payday Loans Offers

Important Information*
CashNetUSA Loan

Apply for a short-term loan with an easy online application and dedicated customer service.

Check into Cash Payday Loan

With 1,000 branches in 30 states, get $50 to $1,000 in days from this direct lender.

OppLoans Installment Loans

Installment loans with competitive rates from a top-rated direct lender.

LendYou Short-term Loans

Apply online with this loan-connection service offering unrestricted short-term loans with fast turnaround.

Go to site