I had a shop that required me to apply for a $255 payday loan. My credit score is above 800 and my annual income is way above what would be needed to qualify for a $255 loan. Imagine my surprised when I was DECLINED! Has this ever happened to anyone? The only thing I can think of is that my income/credit score was so far out of the range of their normal customer....

I don't have the experience to answer your question but are this MSC and that financial institution credible? I will keep checking credit score and activity since now they have your sensitive info.

Another thing just came to mind. Have you been frozen your credit? If you have and they tried to pull, they might not be able to and that might be the reason to decline - just my 2 cents.

My credit isn't frozen. The financial institution seems to be on the level as far as I can tell. Maybe I should lock my credit..... cannot really trust these payday lenders.

I have only ever seen those shops for people with credit scores in the 600’s.

Something is wrong here. If it's payday lending, they have strict regulations to follow, just like other lending institutions. I can't imagine that they would or legally could turn you down based on being dissimilar from their typical borrowers, as long as you are credit-worthy. It's a shame that you may now have a hard pull on your credit. If this happened to me, I'd check with one of the free credit places to assure that there is no identity theft happening. I know of two; credit karma and credit sesame. You can also get a free credit report once a year from the three big credit reporting agencies. I hope this all works out for you. Getting to an 800+ score is quite an accomplishment!

Some states do not allow those loans. I am in Maryland, I am stopped on the application screen after entering my state. Some of the companies allow you to submit, then they deny those in states that do not allow their predatory practices. Maryland does not allow APRs over 25% for example. Your information should not be jeopardized.

I also have a credit score over 800 and was turned down for a small loan on a shop, even though I have no debt and a good income. The only reason I can think of is that there were balances on three credit cards, even though all are paid in full monthly and the balances are not large. The scheduler said that this particular loan company often turns down people with high credit scores, but I don't know about payday loan places.

I had a bank turn me down for a credit line increase but approved me for a new card (in that order, same day).

You should receive a letter with some explanation of why you were denied.

If a company turns you down due to credit issues after a hard pull on your credit they are required by US law to inform you of why. However, because credit information is very sensitive this information is just about always provided second-hand from the application process and from a completely different department of the company. Look for a letter or an email sent to you from the company within 2 weeks - month's time, you should absolutely receive one as they are required to inform you by law! Make sure to skim your spam folder. If you don't receive it you absolutely should call and request it!

They probably turned you down because they assumed you would pay it back quickly. The high-interest lenders want borrowers who stretch out payments so they can maximize earnings.

Sorry to hear you didn't meet their required standards for a short term/pay day loan. Did you list your regular and consistent source of income? Is it from an employer, self employed, dividends, social security...? Is it around the same amount on a regular basis? Did you need to provide bank information on the account where these funds are being deposited? Did the loan require collateral?

Did they run a traditional credit check? Maybe they noticed you have $100,000 in available credit that could've been maxed out just a few hours prior. And maybe you just needed $255 "easy" quick cash for gas money to get back on the road for mystery shopping and Vegas slots.

These payday loan companies usually use alternative credit checking methods and don't care about a high FICO score. They have their criteria and if it's not met, no loan. There's no legal requirement that they must make a loan for individuals with a high credit score.

But I'm surprised they didn't approve you if you listed long term steady employment (not military, self-employed, S.S) with an employer and provided bank account info on where that income is deposited.

Personally, I believe the above poster who said they want borrowers who basically cannot repay the loan early. They WANT to maximize profits. No profit in someone who immediately repays the loan!

I did do one of these shops, several years ago. It was 400 miles from home, not on-line. I had the scheduler "waive" the requirement that I must repay the loan in cash, in person, in the store, on the due date -- I wasn't making another 800 miles round-trip drive just to pay the loan. I understood before I left that the requirement was waived.

When I called in on the "due date", and told the lady there to just deposit the check I had left with them, she cursed me out. I immediately let the MSC know what happened. Dreadful experience!

OP here.... this seems to be the most plausible explanation here. With my credit and income, it doesn't make a lot of sense to get a $255 payday loan and the system probably flagged me as 'not worth it' from their perspective of earning as much interest as possible.....

I have NEVER found a mystery shop that offered enough pay for me to let them pull my credit.

@AZwolfman wrote:

I have NEVER found a mystery shop that offered enough pay for me to let them pull my credit.

I got $1000 to open a Visa card one time.

As for this thread, I don't know anyone with a credit score of 800 or higher that needs to borrow $255. I'd just get it from my ATM or borrow it from one of my kids if the ATM was broken. I usually have that much in cash in my wallet.

I'm still surprised that OP was able to do the shop with that credit score.

OP here... the MSC specifically wanted someone with that high of a credit score (not sure why but that was part of the requirements).

I used to do the payday loans back in the day when they paid us Angeleno's (who rarely get bonuses) up to $125 to do the shop. As I recall there was a laundry list of things you had to bring with you and you would not be approved unless each and every one of them were presented. So to the OP, did you bring all proofs required? You also had to have income that you could prove that would cover the loan. My credit score is similar to the OP's and always has been.
My adult daughter in her thirties who has zero income has a credit score in the mid 800's as well. She paid her bills on time when she had some income but like many parents I know she is a holder of a credit card as one of the individuals on my account. She does not actually have the card herself and has never charged anything on it but her credit score is up there because she benefits from my prompt and full payment. If she gets a job she could certainly give them her first of second pay stub to prove income but she still would not be able to afford to pay them off as all her accounts are at zero now.
I also know quite a few adults who pay their bills, have income but have no extra cash ever. These people might seek a loan to tide them over and may or may not be able to pay back. So there are many scenarios where someone with a high credit score may need or want a loan. Just because you are cash poor a few days after each payday does not mean you skip out of your bills..
In my state there are strict rules for these places and I highly doubt they would be allowed to turn people down who fit the published criteria for getting a loan.

Edited 1 time(s). Last edit at 01/02/2020 06:38PM by sandyf.

True. Doesn't matter $1000, $5000, $10000, etc. pay. I would never jeopardize my sensitive info with these MSCs. You spend your life to build your credit. Never ever worth it to have these sideline MSCs to tear it down for some fees.

@AZwolfman wrote:

I have NEVER found a mystery shop that offered enough pay for me to let them pull my credit.

Some payday loans require that you have regular, verifiable income. If you are 100% self employed that may have been the issue.

I performed that shop for the MSC, provided my credit scores as part of the requirements to qualify, received an approval while on the phone with the loan person, and then was sent a denial letter in the mail. My scores are 745+ no BK or foreclosure/repo ever and regular income. Maybe that's why they're being shopped.

In my state, the TD Bank credit card has nice bonuses. I was wondering if anyone knows what score is needed to get these cards. I don't have a high score, have a high debt to income ratio if they consider my student loans which are in deferment but have a perfect payment history on my car and all my credit cards, with no collections charge offs, bankruptcies or those types of negatives. I have enough credit to have a Citibank and a Discover card.

That is exactly how they make their money and screw the guy who is down on his luck even more. If the politicians were not such weasels this would not have become the norm.

@callinectes wrote:

They probably turned you down because they assumed you would pay it back quickly. The high-interest lenders want borrowers who stretch out payments so they can maximize earnings.

One of the banks that we shop offers payday loans to customers with direct deposit. The loan is automatically paid on the next payday. The customer is now in a hole, and they call back for another loan.

If the direct deposit stops, the bank is relentless in getting its money. They pull it out of the customer's account with no warning.

@2stepps I agree 100%. There so many things that screw over the poor. Miss one payment or one government fee and it all landslides into a huge financial disaster.
,

@2stepps wrote:

That is exactly how they make their money and screw the guy who is down on his luck even more. If the politicians were not such weasels this would not have become the norm.

@callinectes wrote:

They probably turned you down because they assumed you would pay it back quickly. The high-interest lenders want borrowers who stretch out payments so they can maximize earnings.

@2stepps wrote:

That is exactly how they make their money and screw the guy who is down on his luck even more.

Nobody is forcing someone to get a payday loan. People make choices with their money. For most people, the decision to get a payday loan is a consequence of other decisions. It's not screwing someone when they have it posted in large numbers what the APR is, what their fees are, and when they will collect.

@F&L, you can compare cards at NerdWallet or CreditCards.com to see which fits you best.

@iShop123 wrote:

@2stepps wrote:

That is exactly how they make their money and screw the guy who is down on his luck even more.

Nobody is forcing someone to get a payday loan. People make choices with their money. For most people, the decision to get a payday loan is a consequence of other decisions. It's not screwing someone when they have it posted in large numbers what the APR is, what their fees are, and when they will collect.

@F&L, you can compare cards at NerdWallet or CreditCards.com to see which fits you best.

I almost agree with you, but new regulations were put into place due to their PREDATORY PRACTICES.

They really do target the poor and ignorant. It's a shame.

Sort of like beer companies heavily advertising in Hispanic neighborhoods* and Planned Barrenhood locations being situated in black neighborhoods^? It's still a person's own responsibility. I suppose a case could be made for those who are too stupid to figure things out.

* I didn't really notice this until I did the billboard project; it was surprising to me at the time.
^ source: BlackGenocide.org



Edited 1 time(s). Last edit at 01/09/2020 08:55PM by iShop123.

I never really understood the difference credit would make in your life. I have been impoverished for most of my life. Having credit has totally changed my standard of living. However, I've learned in the two-three years that I've had it that the goal is to have it and not use it. You want credit cards that you don't use. Why? Because that enables you to borrow money to buy property, (an appreciating asset) that can make you money. Ultimately, you want to make money from doing nothing at all. But you have to start with basic credit that you use sparingly. It's tricky. Many people don't get it. Use it, then stop using it once you have it. It's crazy!

@iShop123 wrote:

@2stepps wrote:

That is exactly how they make their money and screw the guy who is down on his luck even more.

Nobody is forcing someone to get a payday loan. People make choices with their money. For most people, the decision to get a payday loan is a consequence of other decisions. It's not screwing someone when they have it posted in large numbers what the APR is, what their fees are, and when they will collect.

@F&L, you can compare cards at NerdWallet or CreditCards.com to see which fits you best.

Those sites tell me to get the cards I already have or cards with an annual fee. I don't want cards with annual fees. I'm past that!