Advertising a loan offer will often tell us how quickly and easily you can get a loan, but not everyone will say that the percentage of applications confirmed by banks is not more than 60. In order not to fall into the number of those 40 percent remaining, first you need to understand the reasons why the bank may refuse to grant a loan.
It is worth remembering that the bank reserves the right not to report the reasons for the refusal, but, as a rule, they are standard.
Reasons for refusing a Consumer Loan
Consider these reasons and determine how to deal with them or what should be considered before submitting an application.
1) For starters, you should familiarize yourself with the list of documents required by the bank for processing a particular loan offer. Failure can happen if the set of documents is not complete or the data is not reliable.
2) Your credit history can have a direct impact on the decision. Some banks apply for data to special credit bureaus or use information on unreliable clients, which other banks provide them with the agreement.
It so happened that it is easier for a bank to refuse a refusal than to deal with the reasons for the delay in repayments on a loan.
Nevertheless, the lender can go to a meeting if he neutralizes the “weaknesses”.
3) Insufficient work experience , the level of salary may also not satisfy the bank’s requests, here you may need a guarantee of a more solvent entity, for example, a family member or the choice of a loan offer with milder processing conditions.
4) In the story with microloans, everything can be the other way around – the bank may not satisfy the average income and above the average, because in this case the client can pay off the loan too quickly and even the costs of processing such a loan will not pay off.
5) Ultimately, going to a meeting with a loan officer, be neat and self-confident, because even non-verbal information can give its result.
6) It may be that you did everything perfectly, but the answer still came in the negative. The reason may be a lack of working capital of the bank that you contacted. There are two solutions: if the loan proposal is unique, then try to apply a little later. If everything is not so important in principle, then just contact another bank, or better, several at once.
What to do to get the necessary amount of money?
Firstly, you should carefully check the above points. U.S.A Routing Number If these problems are not solvable at a given time, then there are several options for overcoming the current situation:
- Get a credit card, the process of issuing a credit card is much simpler and more loyal, and it is also much more convenient to choose a credit card for a specific monetary need, be it air tickets and travel or daily expenses.
- He will turn to another bank and pick up a consumer loan there.
- Or you can contact the same bank after some time, because the decision to grant a loan may depend not only on you and your credit history, but also on many other factors – from the financial condition of the bank, to the mood of the manager.
Have you had similar stories and how did you deal with them? Why do you think banks refuse credit? Share your opinion in the comments!