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Top 7 reasons for payday loan rejections

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.

Data indicated here is updated regularly
Name Product Filter Values Max. Loan Amount Turnaround time Requirements
Fast5kLoans Short-term Loans Connection Service
As soon as the next business day
Regular source of income, verifiable bank account, US citizen, ages 18+
Get connected with multiple lenders you might qualify with — even if you have bad credit.
CreditLend connection service
Varies by lender
Regular source of income, checking account, not currently involved in bankruptcy or bankruptcy relief
Find a line of credit — even if you don't have a perfect score.
LendYou Short-term Loans
Same business day to 1 business days
$1,000+ monthly income, direct deposit, US citizen or permanent resident, ages 18+
Get offers from potential lenders in minutes by filling out just one online form.
Depending on lender requirements, people from all 50 states may not be eligible for a personal loan.
With straightforward, simple qualifications, these loans offer easy approval for people with poor credit.
Slam Dunk Loans
Same business day to 1 business days
Employed, $800+ regular monthly income, checking account, ages 18+, US citizen
Fill out a simple online form to compare offers from several lenders that may be able to help.
CashUSA Installment Loans
As fast as same business day
Regular source of income, bank account, US citizen or permanent resident, age of majority in your state
Explore its online education center to get tips on budgeting, how to prioritize your bills and more. Payday Loans
1 to 2 business days
Employed, $1,000+ monthly income after taxes, US citizen or permanent resident, ages 18+
Use its repayment calculator to see how the loan term and amount you borrow affects the overall cost.

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

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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.

    • Avatarfinder 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.

    • Avatarfinder 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?

    • Avatarfinder 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.

    • Avatarfinder 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,

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