Why Can’t I Get A Payday Loan? 10 Reasons You Were Denied in 2023

Why Was My Payday Loan Application Denied

Payday loans are short-term loans meant to be repaid when you receive your next paycheck. This type of loan is relatively easy to get compared to personal bank loans or loans from other traditional credit providers. However, there is no 100% guarantee that you’ll get a loan. Payday lenders typically don’t do a credit check. However, there are several other criteria you may need to fulfill to get approved for this type of loan. If you fail to meet these conditions, your loan application may be denied. 

Is It Hard To Get Approved For A Payday Loan?

No. It isn’t hard for the average payday loan borrower to get approved for a payday loan. They’re unsecured loans which means you don’t need collateral. Also, most lenders will lend you money regardless of your credit score. Of course, there are no absolute guarantees, but you stand a very good chance of getting a loan within a short time. 

Why Would I Get Denied For A Payday Loan?

There are several reasons why a payday loan application may be declined. If you fail to meet any of these 10 criteria, you’re likely to be denied a loan: 

#1 You Do Not Meet the Basic Application Requirements

There are some minimum requirements that every payday loan lender requires applicants to meet. Some of these basic conditions are based on federal laws governing online payday loans. They include: 

You will be disqualified from getting a payday loan if any of these conditions are not met. 

#2 Unable To Prove Your Income 

Payday loans are approved based on the assumption that you can pay back the loan when you get your next paycheck. The lending company will require you to submit your pay stubs or bank statement that shows direct deposits from your employer. If you earn in cash, you’re self-employed or an independent contractor, it will be difficult to prove that you have a stable means of income.

#3 You Do Not Earn Enough Money 

Payday loans are short-term loans. This means the payday loan providers expect you to pay back the entire loan amount on your next payday. Some lenders set a minimum income requirement for payday loan applications and you may not qualify for a loan if your income cannot cover the loan amount you’re trying to get. 

#4 You Don’t Have a Checking Account

As part of the online payday loan agreement, lenders often require payday loan borrowers to sign a post-dated check or fill out an ACH withdrawal which allows them to automatically take the repayment on the due date. You will not be able to do these if you do not have a checking account. 

#5 You Have Outstanding Payday Advances

In most states, you can only have one cash advance at a time. If you still have outstanding pay day loans to repay, payday loan lenders are not permitted to grant you another loan until you repay the previous one. 

#6 Overdrafts On Your Bank Statement 

If you have a history of not making the funds to repay your payday loan available on the due date, it will reflect on your bank account. This makes you a high-risk borrower and reduces your chances of getting a quick payday loan. 

#7 You Have Made Payments To Online Gambling Sites In The Past 

Although they don’t do a credit score assessment, a payday loan lender scrutinizes your bank statement before approving a loan. If it shows a history of gambling, your application may be rejected as this shows some level of financial irresponsibility. 

#8 Bad Credit History

Although most payday loan providers don’t run a credit check with a credit bureau before processing your application, a few lending companies do this. Such a payday loan provider will not give you a loan if your debt-to-income ratio is too high. 

#9 Failure To Meet State Or Specific Lender Requirements 

In addition to the general requirements, there may be additional requirements set by state laws or individual lenders. For instance, lenders in Florida often run a Veritec check before approving a loan. While some lenders may decline you a loan based on certain grounds, you will still be able to get the money you need from less strict lenders. 

#10 You’ve Filed For Bankruptcy In The Past Seven Years

If you have filed bankruptcy in recent times, some lenders may consider you as a high-risk borrower and may reject your application. However, you may still be able to get other types of personal loans. 


Applying for a payday loan through AdvanceSOS is a sure way to get the cash you need to settle your urgent financial needs.

However, your application may be declined if you do not meet certain criteria as highlighted above. In some cases, you may still be able to get a loan by fulfilling some additional requirements or going for a less strict lender.

You can also consider other payday loan alternatives if you’re having difficulty getting approved for a payday loan.

Why Can’t I Get A Payday Loan? 10 Reasons You Were Denied in 2023

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