Top 5 reasons for refusing a loan

It would seem that getting a loan is really no problem. However, each of us may be refused when she applies for borrowing money. Check with us the 5 most common reasons for refusing a loan. Thanks to them you will also learn how to increase your chance of getting money!

1. Too low creditworthiness

Both banks and non-bank loan companies investigate the creditworthiness of their clients. If we have high creditworthiness, we can borrow money without difficulty. When it is too low, we will most often be refused. Our income and monthly costs affect our creditworthiness.

We must remember that every loan company has a slightly different pattern to calculate creditworthiness. It is also related to the amount by which we apply. When we have low creditworthiness, it will be easier for us to get a smaller loan amount.

If we want to increase our creditworthiness, we should take care of more income or reduce costs, for example, pay off other loans.

2. Entries in debtors’ databases

Another reason for refusing a loan is entries in databases collecting information about borrowers and debtors, for example BIK, BIG InfoMonitor, ERIF BIG. Negative entries in such databases are usually a consequence of non-repayment or delayed repayment of loan installments or other debts.

When we pay off our liabilities in a timely manner, we can get a loan without much difficulty. If they are negative and we have not paid off our debts, the only option will be a loan without BIK and checking in other databases.

3. Failure to meet the requirements of the loan company

Each loan company has its own requirements related to granting the loan. We can find them most often on the website. It’s worth getting acquainted with them to get a loan without a problem.

In the case of non-banking loan companies, there is often an age limit, for example, in order to obtain a loan at Aasa, you must be aged 20-80. In addition, we should have a valid ID card and Polish citizenship.

4. Errors in the loan application

Before we submit a loan application to a loan company, we should take a moment to check it for errors. If we make a mistake in entering personal data, we can refuse.

We fill out the loan application on-line on the computer, so if necessary we can improve all the data in a few moments. It is better to spend an extra minute reading the written application than to receive a refusal because of one typo.

5. Late payment of loans

A loan company can also refuse to pay us money when we already have a loan in it. Many of the companies even have subscriptions in the regulations informing them that it is not possible to get another loan before paying off the previous one.

These are the main reasons for refusal in loan companies, but they are not all of them yet. Most often the lender does not indicate why he issued the refusal decision, so it is worth bearing in mind the above reasons.