Loan refused, denied or rejected, why?

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Whoever has not already had a loan refused, denied or rejected raises the hand … Has a clean name but can not get a loan? We all know that lenders are banks or financial institutions do not play this game of lending money as beginners, they use all kinds of data to release your loan application even when there is all the keys to you being a great banking customer.

If you are wondering why your personal loan application is still being rejected, either you are innocent or are not willing to take a step back and take a look at your timeline and your credit history at the Serasa , Scpc, bogus checks and notices, besides of being able to be on a blacklist of credit that many swear to not exist.

Below we will outline a small shallow understanding of how banks tend to process loan and credit applications – and soon you will master how to get your financing approval or a personal loan easily and without constraints.

Personal information incorrect and / or unclear

Personal information incorrect and / or unclear

The initial part of each loan application begins by filling out forms that are often long and tiring. You should not fail to think that this form is a part of the rigorous process of loan analysis requested, no item should be left to be informed.

Only a non-existent number of a document may cause a misunderstanding of the system or the person responsible for analyzing your request? Simple mistakes can cause your loan to be declined, so make sure all the information written on your application or form is correct and verified. Examine your form at least three times before sending it through the system just to be sure.

Bad credit score or dirty name

Bad credit score or dirty name

Did you have trouble paying off old loans or credit cards months or years prior to your request? If your credit history is weak or you have low credit score, at best, you may have a much greater chance of having your loan application declined, denied . Make sure that your previous loans or credits are fully settled. Keep in mind that banks share lists of customers with unstable credit history, so the only way out is through solving your unresolved credit problems.

Credit cards with limit burst

Credit cards with limit burst

Similarly, how you use your credit card somehow affects your loan approval in some institutions. If you do not understand, credit cards are express permits for you to get loan at retail outlets and authorized outlets – and many people tend to forget that. If you have outstanding invoices in your account, banks will look at it and see if your line of credit is above the limit. If you have used more than you owe on a credit limit, this can negatively affect your loan application.

Suspected fraud

Suspected fraud

To start what kind of fraud are we talking about? Identity, if you provided incorrect information about your credit history, used someone else’s identity to apply for a loan and other deceptive methods intentionally, this constitutes fraud. On a daily basis, because of basic identity mistakes, many requests can be rejected, and you can also face criminal issues if this is found and brought to the forefront of the law.

Loan amount too high

Loan amount too high

“How much would you like to borrow?” If this question arises during a loan application or interview, we know you will squirm in order not to ask “as much as possible.” However, banks have a rigid policy when it comes to the amount they can lend to a borrower or candidate.

To lend money, institutions have calculations based on their credit history and many other sensitive information that tell about their financial health and repayment capacity. Most especially, the amount of resources that lenders will lend to you is mostly based on your income and ability to repay loans.

Remember, borrowing with exorbitant amounts also requires a substantial income to match it. These were just ” some of the reasons for having loan not released, refused, denied,” of course each case is a case and there are dozens of factors that prevent the release of the requested personal loan.