Why would I get denied for a payday loan

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The most common reasons you would get denied for a payday loan (or any loan) could be your credit score, your income, or your past borrowing history. While many payday lenders do cater to borrowers with less-than-average credit scores, some won’t lend to you if they know you don’t have the ability to repay the loan. But is getting a payday loan the best choice for you? According to Pew Charitable Trusts, the average payday loan user finds themselves in debt approximately five months out of the year!¹

A payday loan is a common, short-term emergency loan for borrowers who struggle with their credit score. They’re typically used to pay for emergencies like medical bills, car repairs, or other unexpected bills. Borrowers can typically get cash very quickly, but will likely be required to pay it back very quickly as well. Payday loans online are usually due back with interest and fees within two weeks, or by the borrower’s next payday. 

The short repayment periods, coupled with high interest rates, can make these loans difficult to repay on time. If you know you’ll have the money to repay the loan on time, and you have no other financial options available, then a payday loan may be able to solve your cash emergency. But if you know you’ll struggle to pay off the loan and interest by the due date, then a payday loan could potentially create more problems than you currently have. 

While payday loans are generally designed for low-credit borrowers, you may still have a difficult time getting one without a steady income. Many credible lenders will want to confirm your income to make sure that you have the ability to repay the loan before they issue one to you. If you don’t have a steady income, or you have a low income, they may not be able to provide you with a loan. In the long run, this is still probably better than taking out a loan you can’t afford. 

The most important advice we can give you about payday loans is to make sure you’re able to repay the loan in full by the due date. While you may not go to jail for not repaying a payday loan, not repaying on time could result in additional fees and interest, and a practice called “rollover.” This is when the lender extends the loan and charges you more. It’s important to avoid this if possible.

If you are looking for a more affordable option when you need a quick loan, let CreditNinja help you out! Specializing in personal installment loans, CreditNinja seeks to be a better alternative from predatory payday lenders. 


  1. Payday Loan Facts and the CFPB’s Impact – The Pew Charitable Trusts

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