Yeos: Lack of merits can affect such an outcome directly or indirectly.
One may be born in a lower realm due to a lack of strong good merits (or having too many bad ones). Then one will be unable to learn Dhamma.
– That is why the Buddha ALWAYS encouraged doing punna kamma. That will NEVER go to waste.
Merits due to engaging in punna kamma (giving, helping others etc.) helps one get a human life with enough comforts to be able to learn and practice Dhamma.
– Even if one is born a human, one may not be able to learn and practice Buddha Dhamma if one is born to poverty, for example.
– Engaging in punna kamma also helps one setup the necessary mindset to absorb Dhamma (even for one who is born with necessary comforts).