Why Do Payday Lenders Want Your Debit Card Information?

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So you’ve found yourself in a bind and need some cash to cover an emergency expense? First step is checking out our blog post, Five Ways to Make Fast Cash, to see if you can make some extra money, quickly. If none of those are an option or not enough to cover your unexpected expense, then it might be in your best interest to get a payday loan.

Applying for a payday loan

Step one, get online and do a quick Google search for, “how can I get cash fast online?” or “online payday loan”. Second, click on Net Pay Advance site or another payday lender. Once you’ve vetted the website and can decide that they are a trustworthy lender, then you start the application process.

Applications usually can be completed within minutes. Lenders will ask you information about how to reach you, bank account information, your job and pay cycle, etc. After the short-term loan application is completed and submitted then it will go through an “underwriting” process where either a person or system reviews all the information on the application, and pulls additional industry decision tools to determine whether to loan the applicant money.

After all of this, you get the “We’re sorry we are unable to approve your loan at this time.” You’re frustrated and don’t understand why.

In a perfect world, every person that completes and submits an application would be approved and receive funds the next day. Unfortunately, this is not a perfect world and there isn’t (or at least to my knowledge) a loan company that can approve every application. Approvals and denials are just a part of business.

The good news? A denial one time doesn’t mean a denial forever. Here are some reasons why your loan application could have been denied and what you can do to get an approval in the future.

Reasons for denial?

One of the main reasons for denial is simply due to systems underwriting, if the information is reviewed and doesn’t meet a certain threshold then it is denied. While underwriting done by either person or system takes multiple factors into consideration when deciding, some of the most common are below.

  • Resident of a state where the loan company operates
  • Verifiable income
  • Confirmation of pay cycle
  • Verify applicant is over the age of 18
  • Verify applicant is not part of the military
  • Verify age of bank account

Sometimes, applicants wonder why they completed and signed the application in the first place, just to find out they were denied. Again, this is part of the application process. We are unable to verify your application for approval or denial until the application is completed and submitted.

The contracts that were signed during the application process are only valid if the loan is approved. Once a denial is made, the contracts become void. This is done for a faster process for approved applicants. Signing the contracts during the application process means that we can get on track for getting funds to them without the approved applicant returning to the site to sign documents.

Remember that just because you were denied once, doesn’t mean that you shouldn’t apply again should the need arise down the line. Follow our Net Pay Advance blog for tips on extending your bank account, making more cost-effective purchases and saving money so that you can begin your journey to financial health.

Net Pay Advance is a licensed loan provider, locally owned and operated in Wichita, Kansas. Our No. 1 priority is helping you, the customer, by providing access to the cash you need and helping support financial independence goals with valuable, informational, and entertaining content. Stay up-to-date on our posts by following the Net Pay Advance Facebook, Instagram, and Twitter pages. Our organization is committed to transparency; learn more about our authors and editorial policy. The information provided within this blog is for educational purposes only and should not be construed as financial or legal advice. Please contact us if you have any questions.

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