Whenever you go to apply for a loan – from a bank or a financial company – a series of checks are activated which are used to evaluate your reliability as a customer. In other words, the bank immediately goes to evaluate your creditworthiness, which we have already extensively discussed in another article of our blog.
But what are the most common reasons that lead to refusing a loan?
Generally, a loan is denied if:
Your income is not enough: according to the lender, to guarantee the repayment of the debt, you must be able to have at least a third of your salary to repay the loan. You have a precarious job: being a seasonal worker or having a fixed-term contract nearing maturity could lead the bank to consider you a risky customer to be financed.
You are a bad payer: your past, for the banks, speaks for you. If you have already been reported in SIC as a bad payer, you may not be eligible for funding until your name is deleted from that list. You are protested: even just an unpaid promissory note or an uncovered check is enough to protest and have problems accessing credit.
You have more funding
If you already have several loans in progress, the bank or finance company may decide not to finance you further, as the risk of over-indebtedness is high. You have made multiple loan requests with different companies: this is a practice that banks evaluate negatively and it could be enough to make you reject all requests.
You have already had a refusal in the last month: SICs record everything, even when a loan or loan is simply refused. This information is kept for a period of 30 days. So, remember: before asking a new question you will have to wait at least a month before this data disappears from the database.
You are the guarantor of a bad payer
Even if you have always paid well and a third person, who you are helping, has not done so, you also pay the consequences. You have an unsuitable guarantor: choose carefully the person who can help you. Look for someone with a balance sheet that can honor the debt in case you fail. Otherwise, this could also be a valid reason not to disburse the loan. There is no information about you in SIC. Last but not least, the lack of information can also adversely affect the decision of the bank or financial company. In recent years, the number of requests rejected for lack of information is growing, because those who have to grant the credit find it difficult to evaluate you.
Capital Lender can help you analyze your situation, assess your creditworthiness and understand what is hindering your access to credit by giving you valuable advice. Fill in the form below with your data to be called back – free of charge and without obligation – by one of our consultants.