What will prevent us from obtaining a Payday loan?
Getting a Payday loan these days seems very simple. However, we must remember that the failure to meet certain requirements may be an obstacle to obtaining the funds we need. What can cause that we will meet with a refusal to grant a Payday loan?
When we do not have enough savings, we can use easily available loans to finance our expenses. We borrow money for various purposes – for a holiday trip, for kitchen equipment, for renovation, for the purchase of a car, for an important event or for paying bills.
Banks and non-bank loan companies offering Payday loans tempt us with attractive offers in their advertisements – they promise convenient conditions and quick processing of applications as well as instant payment. Therefore, it may seem that everyone has a chance to get money. However, in reality, we can also be refused.
If you want to reduce the risk of rejection of your loan application or you have already received a refusal, but you did not know why, check our tips – you will learn more about the specificity of Payday loans and read what can really prevent you from getting a bank deposit or in a loan company.
Payday loan – basic information
Payday loans are one of the most frequently granted loans chosen by both individual and business customers.
Thanks to Payday loans, we can get money for any purpose – then we do not have to provide the lender with information about what we intend to spend the funds received. Therefore, we can finance virtually every expense.
The maximum amount of a Payday loan depending on the lender ranges from approximately PLN 3,000 to even over PLN 100,000. The repayment period is usually up to 10 years, but most of the Payday loans are loans up to 2-5 years. The group of Payday loans also includes payday loans – loans granted for up to about PLN 5,000 for a period of one month.
For a loan, we can ask both the bank and non-bank loan companies, for example Aasa. We can also get a loan from private individuals – friends and strangers.
The rules for granting loans can be found in the provisions of the Civil Code, specifically art. 720 – 724.
Why are Payday loans so popular?
Payday loans are currently being selected so often because they are easily available and allow for quick money acquisition. We take them for various purposes, both those related to private life, as well as running a business.
We do not have to present a number of documents necessary to obtain them – that is why many Payday loans are loans for evidence, i.e. we do not have to provide the lender with other documentation, for example certificates from the employer.
Not without significance is the fact that Payday loans can now also be obtained via the Internet – it is possible both in banks and non-bank loan companies. The application can then be submitted completely online, and the money after its positive consideration can be on the customer’s account in just one day – without the need to leave the house or office and go to the loan company facility.
Therefore, the popularity of Payday loans is determined by:
– a wide range of banking and non-bank offers
– the possibility of allocating funds for any purpose
– favorable loan terms
– the possibility of submitting an application via the Internet
No wonder then that Poles have so many Payday loans. Together with them we are able to finance practically every purchase – almost without any formalities!
This does not mean, however, that each of us can easily get a Payday loan. Banks and non-bank loan companies also have their specific requirements and if we do not meet them, we can get a refusal.
Other conditions in banks and non-bank loan companies
The terms of granting Payday loans vary depending on the lender. As we mentioned earlier, we can get a loan of this type in banks as well as in non-bank lending companies, for example in Aasa.
The lenders examine the creditworthiness of their clients in various ways – some do it very scrupulously, others in a looser way, which is why it is easier to get a loan.
In addition to creditworthiness, there may also be other requirements, such as the age of the borrower, with his place of residence. Therefore, it is difficult to clearly indicate what are all the conditions for granting Payday loans and which of them may lead to non-payment of funds.
It has come to be assumed that we will get a Payday loan more easily in non-bank loan companies than in banks. Indeed, we can get the required money more easily, but that does not mean that loan companies grant loans to anyone who applies to them.
It is therefore worth analyzing the main conditions in banks and loan companies, as well as the reasons why the customer’s request for a Payday loan may be rejected. As a result, you can reduce the risk of failure if you apply for funds – both at a fixed location and via the internet.
1. Identity card after deadline
The first and most important document that we will be asked to apply for a Payday loan, as well as for other loans and credits, is an ID card.
The personal ID card is the main identity document in Poland issued to adults. Therefore, the very nature of the evidence indicates that the loan can only be obtained by an adult who is over 18 years of age.
Even if the ID card is overdue by one day, the requesting system of the bank or loan company will detect this and will not allow you to submit a loan application.
Therefore, before submitting the application, both stationary and online, it is worth checking if the ID card is still valid. If not, you should apply for a new identity card to the local office – the waiting time for its preparation lasts usually up to a month.
2. Place of residence outside of Poland
Banks and non-bank companies want their clients to live in Poland and it was here that they had their permanent address. This is due to the fact that granting loans to a person living outside the country is more risky – if the obligation is not paid, reaching such a person and recovering money from it will be very difficult, and sometimes even impossible.
Therefore, if we want to apply for a Payday loan, we must provide the Polish address of residence. We will also receive the necessary loan documents if we conclude a contract via the Internet.
Of course, it is possible to obtain a loan when we work seasonally abroad, but we live permanently in Poland and it is here that we have our permanent address of residence, which we can provide in the application.
3. Inadequate age
We have already mentioned that it is necessary to be an adult to obtain a Payday loan. Therefore, a potential borrower under 18 years of age will not be able to receive money from a bank or non-banking loan company.
However, it is worth pointing out that some banks and loan companies apply additional age limits for their clients, so even after reaching the age of majority we can meet with refusal to grant a loan.
Age requirements are aimed at reducing the risk for the lender – both too young a client, as well as the elderly, create a risk of non-payment, which is why loan companies and banks introduce special limits.
Depending on the lender, we can meet minimum limits from the age of 20, 21, 22 or even 23 years of age. In turn, in the case of the maximum age of the borrower, he can be 70 years, 75 years or sometimes even 80 years.
It is worth getting acquainted with the loan requirements so that it does not turn out to be rejected due to the unfulfilled condition of the appropriate age.
4. Insufficient creditworthiness
Most often, however, loan applications are rejected because the client does not have sufficient creditworthiness.
Creditworthiness is defined as the ability to repay a liability, i.e. capital together with costs at a given time. This ability is calculated based on a number of different factors and each lender has slightly different requirements in this respect.
It happens, therefore, that in one bank we may face a refusal to provide a Payday loan due to low creditworthiness, while in another bank or in a non-banking loan company, we will get permission.
So what makes creditworthiness? What could be an obstacle in getting financing? Below we present the main elements that make up this requirement.
The amount of earnings
The main factor shaping creditworthiness is the appropriate amount of earnings. The more we earn, the more our creditworthiness grows.
However, it is worth pointing out that we do not have to earn a lot to get a loan – often only the minimum wage or even lower is enough, but depending on how much and for how long we want to take out a loan.
Source of earnings
The source of earnings, that is where we get it, is also very important. Banks and non-bank loan companies prefer permanent sources of income such as an employment contract of indefinite duration, a pension, and a pension.
Of course, we can also get a Payday loan with earnings achieved through civil law contracts – a contract of mandate and a contract for a specific work, when we have our own business. Banks and loan companies, however, treat such sources of income differently, so we can have a reduced creditworthiness.
The amount of expenses
The amount of earnings earned is also related to the amount of expenses – when we earn a lot, but also spend a lot, then our ability will not be so high.
When determining the expenses in the loan application, we firstly point to the overall monthly amount of our invoices, maintenance costs, fees, for example those resulting from other loans and credits, insurance, and maintenance. Therefore, the less regular expenses we have, the higher the creditworthiness.
It is also important in which family situation we are. That’s why you often need to enter information about the marital status and the number of people in the family in loan applications.
People who are married, with children, have lower creditworthiness than those who are singles and have no offspring. The more people to maintain, the lower the ability will be.
Education and occupied position
In addition, in loan applications we often find a request to enter your education and position.
This information is also important for determining creditworthiness. It is higher for more educated people and those in higher positions. The lower the education, the lower the ability, but this does not mean that people with primary or secondary education who work physically can not count on a good loan – a lot depends on other factors, including earnings.
Attention! It is possible to get a loan without BIK or BIG, i.e. without having sufficient creditworthiness, but we must remember that loans of this kind are very expensive. Borrowing costs are then much higher than for other offers.
5. The amount of the loan requested and its repayment period
It is also worth noting that the client’s Payday loan application is also important when it comes to the amount he is requesting and what repayment period he chose.
The amount of loan requested and its repayment date are directly related to our creditworthiness. If we apply for a loan for a higher amount and with a short repayment period, then we must also present ourselves with a high credit rating, because the monthly installments will then have a large amount.
Of particular importance is the repayment period in this case, because it determines the amount of installments. With the same sum, a shorter repayment period means that the installment is higher, while if it is longer, the installment decreases. So if we earn less, it is worth thinking about extending the repayment period – then there is a greater chance of granting a loan.
It is also worth noting that the longer the repayment period, the more expensive the loan will be – we will give the bank or non-banking loan company a larger sum in the form of interest and other payments.
6. Other loans held in the same loan company
Although most often having other loans and credits is not an obstacle to getting more, unless we have very low creditworthiness, it happens that in some loan companies we can only have one loan at a time.
Therefore, we can not apply for another loan in the same company until we repay the current one.
7. Errors in the loan application
Quite often the reason for rejecting a loan application is also an incorrectly completed loan application. It happens that we make simple errors in it that go beyond the omission, for example, we forget about filling in a column, we give the wrong address, we make typos.
These errors in the loan application may cause a delay in the processing of the application or its complete rejection – then we will have to submit it again.
What will prevent us from getting a Payday loan via the internet?
The above reasons for the rejection of loan applications concern both Payday loans granted on a fixed basis as well as via the Internet. It is worth mentioning, however, about several other requirements that concern on-line loans provided by banks and by non-bank loan companies.
First of all, to obtain a non-bank loan via the Internet, we will need a bank account – preferably with online access, because then we can conveniently make transfers from it. This account must belong to us! It can not be an account of someone close to us, for example a partner or partner, because then it is founded on other data. This is especially important when making a special online confirmation procedure – it consists in making a transfer from your own account to the account of the loan company. When the data from the transfer match the data entered in the loan application, the identity is confirmed positively. Otherwise, the application will be rejected.
It is also worth remembering that in the case of on-line loans, it is often a necessity to have a mobile phone – it is also used to confirm the identity, usually by an SMS.
Although it is not difficult to obtain a Payday loan at the moment – both in banks and non-banking loan companies – there are still cases when the lender refuses to transfer money.
Most often, the refusal to provide a Payday loan results from the client’s insufficient creditworthiness, which may also not be a credible borrower due to problems with repayment of debt in the past. It happens, however, that the reasons are different, for example, outdated ID card, inappropriate age, lack of permanent residence in Poland or errors that crept into the loan application.
Most often, banks and loan companies do not indicate exactly what is the reason for refusal to grant a Payday loan. Therefore, we have to figure out what happened to be the main reason. Let’s check all the issues listed above, let’s also think about improving your creditworthiness, for example by paying off debts, increasing revenues, lowering regular costs.
It is also worth remembering that different banks and loan companies have different requirements, so it may turn out that we will receive a refusal in one institution, while in another one, a Payday loan will be granted without any problems.