A much needed payroll advance may be the only money option you have when your credit has sunk below par. Instead of plunging full force into the application, you will want to take the time to understand how loans of this type work. A short-term loan does not fit into everybody’s financial plan. Some applicants will be denied pre-approval status due to fundamental reasons.
* You have to be employed in order to obtain a fast payroll advance online. The loans have short terms. They typically average a term of about 14 days. If your employment cannot be verified by a loan manager, how can anyone approve lending you money? Your employment will be verified. There is no reason to be embarrassed, the loan managers know not to give your financial troubles away to anyone. Phone calls are done discreetly to protect confidentiality between lender and customer.
*You are not old enough to apply. Most direct lenders will expect a person to be at least 18 in order to apply. There are some who up the age limit to 21. If you fall in this age range, you will want to verify the direct lender’s age policy prior to applying.
*You do not take-home enough income after taxes. A payroll advance should only be a portion of what you take home each month. Since the payoff scheduled is correlated with the arrival of your next paycheck, it is important that you will still be able to support yourself until the following pay period. You should never be approved for a loan larger than one-eighth of your net monthly income. It is a good figure to go by as it gives a reasonable limit to how much can be borrowed. Some lenders may be willing to lend you more than one-eighth. Do your calculations at home between debt and income and see how much you can truly afford before accepting any offer.
*Your bank account should be at least 3 months old. The loan manager will verify many things through viewing your most recent bank account statement. This is also a great place to see how your current money matters are flowing. Are there signs of distressed finances through visible overdraft or NSF fees? Are there bounced checks? Is there evidence of paychecks directly deposited? Current banking behaviors are a good sign as to how your finances are running now. Credit checks are part of a 7 year history and a score could remain low even though a person turned their money management skills in a positive direction.
*You have too many current payroll advance cash loans already. Because these loans are expected to be paid off quickly, there is not much give to a two week loan term. People struggle to make ends meet when only one payroll advance must be paid, never mind multiple ones. A good lender would not want to have more than one other loan out at the same time. There are some lenders that will accept more simultaneous loans. It doesn’t make financial sense to take out more money in loans than your net income can handle.
*Where you live may get your application denied. Between some state regulations preventing these loans being used by residents or the direct lender choosing to not do business in your state, your application may be rejected no matter how you qualify among the other fields.
If you do receive the initial rejection letter, you can always call the company and find out why. A good lending company will explain to you the reason behind any loan application denial. If you do get pre-approved for an online payroll advance, take a moment and make sure your budget can support the payoff before you sign the contract.