- 1 №1. Bad credit reputation is working against you
- 2 №2. Your monthly earnings is not enough for disbursement of loan
- 3 №3. The purpose of one’s drawing upon a loan seems to be quite highly questionable
- 4 №4. Inconsistencies in information given by you in the process of application
- 5 №5. Security of employment is absent
- 6 №6. Too many loans have been taken previously
- 7 № 7.You didn’t meet the demands
Resorting to drawing upon loans or taking a credit, most of us have got questions alike: “Are there good chances for me to be approved? Will I be approved? What makes a lender to say “No”? As borrowers excruciate the mind with cares about approval on an annoyingly regular basis, we have decided to put together in this article reasons when a lender’s decision is stacked against a potential loan user. Have got the same problem? The idea is forefront in your mind? We’ll try to calm you down by disclosing the real reasons when you can face denial in the process of drawing upon a loan.
№1. Bad credit reputation is working against you
This kind of reason to deny a person in taking a loan holds key positions. But you know that even at this stage there is still a hope. Yes we cannot deny the fact of bad credit score existence, but situations can differ. If a loan user didn’t have defaults in past or didn’t take loans, there are chances to receive a positive reply. Obviously, applicants with poor credit record, previous defaults and chains of credits with difficulties in paying off are not so lucky.
№2. Your monthly earnings is not enough for disbursement of loan
Yes, unfortunately we must admit that this criterion also plays a leading role in the scheme of success to borrow. If a loan supplier is not sure in one’s solvency it is out of the question that the person is to be denied. The only way out is to improve this weak point with income, to prove one’s paying capacity. In other words, to work on it.
№3. The purpose of one’s drawing upon a loan seems to be quite highly questionable
It goes without saying that if you resort to automobile loan, you are to use the money on it, there shouldn’t be another reason if you choose this sort of borrowing, or secured borrowing is only for certain assets, there shouldn’t be other alternatives. In short, the purpose of taking money should comply with the sort of borrowing and mustn’t disorient or raise a red flag for a lender. Otherwise you have strong chances for being denied.
№4. Inconsistencies in information given by you in the process of application
All the time lenders very the data presented by you, in case of finding any kind of untrue details, lenders won’t have any intentions for dealing with you and again you’ll be said “No”.
№5. Security of employment is absent
Again, this point is quite simple to understand. How is it possible to lend money to a person who hasn’t got stable income? Good history employment also plays a role, if you have got a job, a stable one, you can pay. But how can a person to pay off a loan if the situation with income is unsafe? Of course, lenders can’t rely on such applicants. And the answer is –“No”.
№6. Too many loans have been taken previously
Pay off the previous borrowings, otherwise the lender won’t deal with you. In such a case, probably, you’d better find solutions using other alternatives, how to survive without payday loans and other sorts of borrowing trying to consult specialist in financial sphere, to ask your relatives or friends for help or find extra job.
№ 7.You didn’t meet the demands
Hope that those points have helped you to make a good decision and work with some points on how not to be denied. We are looking to for that you have also found the answer to your question : “What makes a lender to say “No”?”