What Will Stop You From Getting a Payday Loan

By: Branden S.

The only thing that will stand in your way from getting online payday loans to cover your personal expenses and short-term financing goals is when you are not evidently able to show your direct payday lender how you will pay back the debt settlement when due.

This, in turn, poses a massive threat to consumer financing and short-term payday lending.

The problem is that most customers fail to understand the level of risk imposed on a direct lender when offering short-term financing, specifically for online payday direct lenders.

Online payday direct lenders will never ask you for collateral nor to show a good credit score or rating for the loan offer you are applying to get.

These loans are only structured to help individuals in the toughest of financial conditions to pull through easily while ensuring maximum security on the part of the direct lender.

What will Stop You from Getting an Online Payday Loan?

As discussed earlier, the main reason an online payday direct lender will deny you short-term financing is when you are not able to show them your ability to pay back the debt when due.

As a result, online payday lending security for direct lenders is usually tied around the following –

  1. Employment status
  2. Size of salary

Basically, someone unemployed is more unlikely to have any income coming to them either as a salary or a regular monthly paycheck.

1. Employment Status

This is a total red flag to lenders.

Not only does your current employment status assure an online payday direct lender of your ability to pay back the debt, but it also gives them a form of security – knowing that they can always reach out to your employer or hiring manager to work out a more reasonable payment plan for your loan settlement in accordance with your current salary standard.

As a result, online payday direct lenders will generally require you to show an employment status of at least three (3) months of work in your current company or organization.

Now, while the customer is always right, in this scenario, the online payday direct lender is the one who is not wrong.

Online payday direct lenders can only garnish your wages if you fail to maintain steady communication with them as it relates to the late payment of your pending loan settlement.

2. Size of Salary

The size of your current work salary or paycheck determines how much you can get from an online payday direct lender.

This, in turn, can restrict your access to an online payday loan.

Applying for online payday lending from a direct lender that exceeds your current salary size is a sign to the lender that you will find it pretty challenging to pay back the debt.

As a result, lenders will either decline your funding request or offer you a much higher interest rate and late payment fee on the loan offer.

Higher interest rates and fees are often attributed to loan offers like this that pose a higher level of risk on the path of the online payday direct lender; thus, the lenders use this to commensurate the level of risk involved.

How to Get an Online Payday Loan after an Immediate Disapproval?

The most limiting factors for online payday loan guaranteed approval include the following:

  1. Credit utilization ratio (credit-to-debt ratio)
  2. Loan terms

1. Credit Utilization Ratio

Your credit utilization ratio (or credit-to-debt ratio) is simply the balance settlement left pending on your loan offer relative to how much you have left to borrow.

Thus, credit utilization ratios are often represented as a percentage of your total available credit that is currently in utilization.

Credit experts always advise borrowers to maintain a steady credit utilization ratio of 30% and below, especially if they want to maintain a good credit standing with lenders and other traditional financial organizations.

This is mainly because, according to the FICO scoring model, your credit utilization ratio contributes about 30% to your current credit score.

While a credit utilization ratio of below 30% can get you as much as you need in personal credit financing for your household expenses and emergency spending, the case is quite different for a higher credit utilization ratio.

Having a low credit utilization ratio is totally possible!

The low credit-to-debt ratio can be achieved by first ensuring that you don’t exceed your current credit limit when taking up any form of a loan or short-term financing.

It gets worst when the size of your salary does not correspond with the terms of the loan offer as well.

Applying for an online payday loan with a considerably high credit utilization ratio will only result in a decline in your funding request or higher interest rates and fees on the loan offer.

2. Loan Terms

Online payday loan repayment terms vary by lender.

This, in turn, gives consumers that competitive advantage when dealing with direct lenders.

It’s so unfortunate that despite all these, people still make the mistake of applying for short-term financing with direct payday lenders that are not best suited for their current funding preferences.

As a result, they find themselves caught in a tough financial bubble where they are not able to pay back the loan settlement when due.

Online payday loan terms will often reflect the following:

  • The complexity of a customer’s financial situation
  • Budget
  • And the time of payment of your salary.

Online payday loan terms come with different time intervals for repayment or settlement – there are online payday loan offers that last just two (2) weeks and those that last for up to a month (4 weeks).

Hence, a customer who takes up a two (2) week online payday funding offer will find it really to pay back, especially when their salary or paycheck is due by the end of the month.

Applying for online payday direct funding with a salary structure like this will likely not guarantee funding from your direct lender.

Not only will this affect your ability to pay back the debt, but it also goes a long way to negatively affecting your current household budget.


While online payday loans are one of the most effective ways of dealing with a shortage of funds at the toughest of all situations, there are certain things to check before applying for one.

The great news is that all these can be fixed easily.

Online payday direct lenders will also allow you access to funding without a job, only if you can show reasonable proof of some other way of raising income for yourself monthly.

You can get online payday loan direct funding without a job by showing the following as proof of income: child support or alimony, dividends or interest, long-term disability, social security, retirement funds, trust fund, rental property, etc.

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