How to Get a Payday Loan After Being Denied

Payday loan interest rates are sky-high, but they are a potential source of short-term cash in a financial emergency. If you were denied a payday loan, ask your lender the reason for the denial, take steps to resolve the problem and reapply with either the same lender or a different agency.

Determine Why You Were Denied

Ask the payday lender why you were denied the loan. According to the U.S. Consumer Financial Protection Bureau, most payday lenders require that you:

  • Show proof of income.
  • Provide valid identification.
  • Be at least 18 years old.
  • Have a checking account.

Lenders may have additional criteria you must meet. Some lenders make requirements such as:

  • You've worked at your job for a minimum length of time.
  • Your checking account has been open for at least a month.
  • Your income is recurring and substantial enough to repay the loan.
  • You're not currently involved in a bankruptcy proceeding.
  • You're not a member of the military, since federal law more stringently regulates the rates and terms of payday loans to individuals in the military.
  • You live in a state that limits the amount of interest payday lenders can charge because of strict regulations on the industry.
  • Your credit score exceeds a minimum requirement.
  • You don't currently have another outstanding payday loan.

Resolve the Problem

Once you determined why you were denied the loan, take action to resolve the issue. Ask the payday lender you worked with what you would need to provide or change to resolve the issue. For example, if the lender wasn't able to verify your income, get copies of pay stubs from your employer or switch to direct deposit to show the net income you receive from wages. If you haven't been at your job long enough to qualify for a loan, provide proof of income from previous jobs in the same industry, or get a letter from your employer stating that your employment is in good standing.

If you were denied because of credit issues, order a free copy of your credit report. If there are outstanding credit items you didn't know about, you can pay them off and potentially improve your score. If information on your credit report is incorrect, you can dispute the items with the credit bureau and have them removed.

Reapply for a Loan

After resolving the issue, you're free to reapply for a payday loan. Be careful, though, because too many loan applications within a short period of time can hurt your credit score. If you simply can't meet the requirements from your original lender, shop around for a different payday loan provider. You may find one that has less stringent requirements that you can qualify for.