Known as payday loans online, deferred deposit loans or check advance loans – such are all short-term loans ranging anywhere between $100 and $1000 that appeal to individuals facing a difficult financial situation, offering them a quick fix until their next payday. “Defaulting” on a loan, otherwise known as missing a payment, can bring about many different consequences including automatic withdrawals from your chequing account, bounced checks or payments, NSF (Non-Sufficient Fund) charges. This payday loan will affect your credit rating, can lead to repetitive calls from collection agencies and even worse – a lawsuit. So, Can A Payday Loan Take You To Court?Facing an overdue amount – no matter how small that amount may seem? Then chances have it that you’ll be taken to court for a lawsuit. It is important to keep in mind that no amount is ever “too small” to be neglected. More so, once the court judgement has been decided, further and even bigger problems can come to be, including property seizure. In most places in the states, a judgement is viable for ten years and therefore, any property you may put your hands on over the next ten years can be used to repay your debt and any additional fees that have accumulated over time. Request Help Prior to getting Sued If you know that you aren’t going to be capable of making your payments on your payday loan online, then your best option is to start looking for help before you ever even get sued. No matter what amount you are dealing with when it comes to your payday loan online, you should never tell yourself that such isn’t important enough. If a court order is what ultimately encourages you to take action, then we’re here to help you get through that, too! Lawsuit For Unpaid Payday Loans While a lawsuit for an unpaid payday loan is not just possible but actually probable, threatening or harassing someone with arrest or jail time for not paying back said loan is in fact illegal under the Fair Debt Collection Practices Act. In many scenarios, the lender will pretend to be a law enforcement officer or government agent in order to request their cash, alluding to possible jail time. In the case that you are threatened, you should contact the office of your state attorney general, as suggested by the Consumer Financial Protection Bureau. Remain cautious though, for certain payday lenders have actually succeeded in using bad-check laws to successfully file for criminal suits. For this reason again, it is best to never ignore a court judgement because such orders are legitimate when it comes to failing to repay a loan. Court Judgement Just a small word of advice before we continue: Never, ever ignore a court judgement. Not showing up in court in order to discuss your settlement plan will only make matters worse – much worse, seeing as the creditor can now sue with the legal system on their side!
On a lighter note, failing to pay back a payday loan online is not considered a criminal offense and therefore, you can’t be sent to jail. However, the fact remains that a payday lender can still take you to court and cause you quite a bit of hassle. Source: Can An Online Payday Loan Take You To Court? When facing a financial emergency where you feel there is no way out, getting approved for a payday loan can be of great help. Despite being known for their high interest rates, such loans provide quick and easy cash when in urgent financial need. This may come as a surprise, but payday loans online are in fact quite popular among specific borrowers! Generally speaking, payday loans have high approval rates when compared to conventional bank loans. Furthermore, a payday loan is typically approved within a few hours and funds almost immediately deposited into your bank account sometimes in as little as 24 hours. That all sounds great, right? Well, it’s equally important to keep in mind that many requests are in fact rejected – it all comes down to the individual criteria. 7 Tips to Getting Your Payday Loan Approved Are you in desperate need of a payday loan and looking to help ensure approval? Read on and take note of the following 7 top tips and tricks to increase your chances: 1. Demonstrate Reimbursement Capacities Lenders will want to assess your level of risk before even thinking of providing you with a loan and one of the methods they do so is by ensuring that you can reimburse the payday loan. Moreover, the total amount of the said loan often goes hand in hand with your reimbursement capacities. You can demonstrate your ability to repay a personal loan through proof of incoming or the use of a cosigner. If you choose to go with a cosigner, make sure you are choosing a responsible individual, who has good credit score and is aware of the risks. If you fail one of your scheduled payments, your loan provider will request the sum from your cosigner. Furthermore, your cosigner will equally have to demonstrate their reimbursement capacities through proof of income. In many cases, having a cosigner can help ease a lenders worries in terms of lending to someone with a riskier credit report. 2. When Applying, Don’t Lie When it comes to requesting a payday loan online, nothing good comes of lying. In fact and in most cases, your lender will probably discover your lie and you’ll ruin any chances of ever getting accepted for a loan in the first place. Keep in mind that your problem won’t necessarily end there – your potential lender can also warn other professionals in the field, keeping you from obtaining a loan from others as well. To avoid any of the latter problems, provide only absolute, honest and correct information in terms of your application. 3. Be Timely with All Requests Your lender is guaranteed to request certain information on your behalf, including certain documentations. Make sure that all requests are fulfilled in a timely manner, including providing the requested papers and forms. Your loan application process depends on such documents, and such can be delayed or stopped altogether if you fail to fulfill requests on time. Read the loan application carefully and be sure to attach all requested documents. Even after this is completed, it is still possible that your lender requests additional information and this too has to be provided as quickly as possible. 4. Positive Credit Rating Alright, before you start freaking out – no, your credit score isn’t the biggest factor when it comes to obtaining a payday loan. But let’s face it – a positive credit rating can definitely go a long way. When it comes to a lender, you know they’re performing credit checks – even if advertising that credit and ratings don’t matter. As you know, a higher credit score increases your chances of approval so, keep an eye on your credit report, reimburse due payments, dispute any errors and keep your score above 760. Above and beyond this number, you can rest assured knowing that your report is in good shape. However, anyone under the 490 range has some work to do – for this score is considered rather negative. 5. Work Towards Improving your Score So, you’ve got a bad credit score: 490 and under. Don’t panic. A bad credit score can actually be improved within the matter of months if you work towards bettering it in the right way. Start by paying down debt, paying all your bills on time and maintaining low credit balances. Of course, this takes a little time and a lot of commitment, but is definitely doable if you give it what you’ve got. More so, keep in mind that although it’s best to work on improving your credit score before requesting a payday loan, sometimes emergency situations have it so that this isn’t possible. Obtaining a loan is still possible with a low credit rating, despite being slightly more difficult. 6. Search for Lenders who Accept your Credit Rating As earlier mentioned, a poor credit score doesn’t impede you completely from obtaining a payday loan. In a financial emergency, you probably won’t have the needed time to improve your credit score and therefore, you’ll have to start searching for lenders that work with clients having a bad credit rating. Every payday lender has their own set of requirements and many of them aren’t set in stone. In other words, certain lenders might not consider an applicant with a score of 600 and under while another lender will, as long as you can demonstrate repayment capacities. Make sure you aren’t getting yourself into more trouble by falling into the hands of a loan shark. Always request payday loans from reputable and credible agencies. 7. Verify Your Debt to Income Ratio If you’re looking to increase your chances of payday loan acceptance, then take the time to verify your debt to income ratio and request a reasonable loan. For example, if your total monthly income ranges around $2000, no lender will approve a $1000 loan. In fact, you’ll greatly increase your chances of acceptance if you’re only requesting a fraction of your income, in this example, perhaps $200 or a maximum of $400. Simply remember, the lower the request, the higher the chance.
In the end, when it comes to applying for a payday loan, there are many factors that come into play and many of such can increases your chances of acceptance. Keep in mind that lying for any matter in terms of your request won’t improve your chances – nor will lying about or exaggerating your monthly income. You’ll have to demonstrate stable income and therefore, part-time or freelance work is usually not taken into consideration. Source: How To Get Approved For A Payday Loan Online? from https://www.achievefinance.com If you keep getting denied for payday loans online, don’t take it too personally. After all, it’s just a computer on the backend making the decisions, right? Much like a doctors warning in terms of high-cholesterol can be a patient’s wake-up call to leading a healthier lifestyle, loan rejection might just be the wake-up call needed to clean up your credit score if you keep saying to yourself: I need a payday loan but keep getting refused. Think of it this way: Being rejected for a loan may keep you far away from possible consequences in the future. Common Reasons for Denying your Application1. Having too many Current Payday LoansWhen applying for a payday loan, one of the first thing a lender looks at is whether or not you can afford the loan. Part of the application process entails looking at your actual financial situation. For certain lenders, rejection may be deemed fit if you’re requesting a loan to pay off another financial engagement. You may equally be rejected if you’ve received more than one payday loan within the last 90 days You can also be rejected if you are currently repaying a payday loan. 2. Your Salary is Paid in Cash As earlier mentioned, lenders need to verify your current financial situation and therefore, being paid in cash can cause a few problems. If a lender can’t verify your income, you have high chances of being rejected. A lender will verify your bank statements and if you aren’t depositing your cash every pay cycle, then you aren’t leaving an online trace, making it impossible to check. If this is your case, then start looking for a lender who can verify your income through your payslips. 3. You’ve Filed for Bankruptcy Lenders use a lot of information stemming from your current financial situation in order to determine the risk in lending money to you. Having filed for bankruptcy within the last year will most likely have your request stamped as high risk – and you might see yourself rejected. Don’t worry though – if you’re dealing with recent bankruptcy, there are other options for you. 4. You Have No Job Let’s face it – without stable income, you’re likely to be rejected, for many lenders will question your ability to repay the loan in the first place. Sure, certain lenders may take the time to consider an unemployed applicant, however such an individual must still demonstrate a stable source of income – be it governmental benefits, work or otherwise. 5. Recent Overdrafts A dishonored payment occurs when a creditor attempts to retrieve money from your account however, there isn’t enough money to cover the fee. If your bank account history displays a history of overdrafts, you’re more likely to be considered a risk and hence, your request rejected. 6. Attaining Minimal Requirements Most lender’s have a specific list of mandatory criteria for payday loan acceptance on their website. It is highly recommended that you take the time not only to read such criteria, but to make sure that you meet such established standards. If you don’t meet the said list of criteria, you will most likely see yourself rejected by this lender. Additionally, many lenders equally have an internal scoring system where points are provided in order to determine your eligibility for a loan. If your score isn’t ultimately high enough, this is another reason your request may be denied. There Are Many Lenders! Although this has to be completed properly and carefully, it is equally possible to apply for a payday loan from more than one lender. Acceptance criteria can vary from one lender to the next and therefore, despite a previous refusal, you still have chances of being accepted. Avoid lining yourself up for repeated refusals and don’t keep applying if you have very poor credit score or a very high debt-to-income ratio. Always keep in mind that hard inquiries also directly affect your credit score in a negative way and the mark can last up to an entire year! In Conclusion If you’re facing a rejection for a payday loan – look at the bright side. Such a refusal can really give you the opportunity to carefully evaluate your goal and assess how you can obtain the funds in the quickest means possible. You can take advantage of this time to better your credit report and dispute any credit errors if needed. If you need the money right away, you can consider obtaining a payday loan from a different lender or start looking into different options altogether.
Source: Why Do You Keep Getting Denied For Payday Loans Online? from Achieve Finance |
Achieve Finance
Installment loans online Follow us on social media Business.site Blogspot.com Sites.google.com Feedburner.com Plus.google.com Wordpress.com Tumblr.com Evernote.com Twitter.com Drive.google.com Docs.google.com About.me Diigo.com Getpocket.com Instapaper.com Gravatar.com Youtube.com Behance.com Pinterest.com Soundcloud.com Categories
Tout
|