Behind Rejections: Why Are You Denied Online Cash Advances and Credits

You sit at a bank waiting for your credit request approval when the loan manager informs that the request has been rejected. You plan to buy some much needed merchandise using the promotional sign-up discounted price but are embarrassed to find out that your store credit application could not be approved. You are confused. What went wrong? The last time you checked, your credit score was perfect!

If you thought a late or missed payment is the only thing that affected your credit score, it is time for a reality check. Thousands of other factors have a direct impact on your credit score. Know these before it is too late and before you are left with a fast online cash advance as the only loan option.

When any of your credit applications is rejected, you can expect a follow-up letter explaining the reasons behind the rejection. It is more likely for you to think about your debt and if you missed any scheduled payment. However, there are other more common factors that may have brought down your credit score. Take a look:

  • Credit applications: Your credit score is greatly influenced by a credit application. Irrespective of being approved or rejected, a new credit application will bring down credit score while being processed. This drop will be significant if you have applied for many simultaneous credits over a short period of time. Even when new credit limit is being added to your credit utilization rate, it will make your credit score drop. In order to know the real credit score it is best to wait for at least six months before filing any new application.
  • Credit limit: Your credit utilization rate will show a negative impact if you have spent much of your credit limit in one single month. This happens when the creditors report this behavior to the credit bureau even before you are able to make them a payment.
  • Installment loans: This type of loans show on your credit history for a long time, even for seven years after you have repaid in full. Once your report comes clean of this type of loan, you will observe a significant change in your credit score.
  • Vantage score vs. FICO: You may have seen your Vantage score while your creditors may refer to FICO. These are completely different scores based on the formulas they use. What your creditors see will make all the difference when it comes to getting new credit.

A low credit score is not the end of the world and you still will be able to get credits although with a higher interest rate. A credit score puts you on a category which decides if you are eligible for a credit. Even a one-point difference can be crucial when it comes to money matters. However, you still have the option to fall back on other options such as a direct online cash advance.

If your direct online cash advance request is rejected, it is best to call up the lender and ask for an explanation. Since these lenders do not check credit reports, your credit score cannot be the culprit here although many other factors can. These include a low take-home income, too many open cash advances, default on previous short-term loan(s), no bank account in your name, or it is against the state regulations. There may be reasons beyond these which you may be able to clear quickly and reapply right away.

Investing some time and effort in knowing your financial scenario will stand you in good stead and will help you in making some wise financial decisions in the future. While you may not buy a new car to improve your credit score or not move to a new state to get short-term loans, you will at least know what you need to do. This will also save you some disappointments and embarrassments when you are denied access to some much needed fund. During emergencies always remember to explore the online cash advance options. Sometimes, it may be the only source of money you have in order to meet a monetary crisis that needs immediate attention.