Reasons for rejecting a loan applicationUncategorized
By default, non-bank loans are easily available and dedicated to people who need a quick cash injection. They do not require a large number of certificates when submitting the application, so people who have received a refusal at a bank for some reason can go ahead and apply for quick cash from individual lenders or contact them immediately. However, contrary to popular belief, not everyone gets a positive decision on a loan application. Loan companies have special verification processes that include cooperation with debtors’ bases and the use of new technologies such as Big Data. There are often questions why I got a refusal? There are many reasons. What is worth remembering when we want to take out an online loan and what are the most common reasons for rejecting an application, we will examine together with the expert.
Creditworthiness, how does it affect the receipt of the loan?
One of the most common reasons for refusing a loan is low creditworthiness. As in banks, the exact approach to creditworthiness is influenced by the individual approach of the loan company. Some approach with greater confidence, because they assess creditworthiness only on the basis of data provided by the client, while others need documents confirming income. One thing is certain, lack of credit standing is a significant obstacle to getting a loan online. To avoid wasting time, calculate your creditworthiness before filling out the loan application. From your monthly income, deduct all necessary expenses, including the installments of other loans (if you have one) and calculate the free amount. Remember that the loan installment cannot exceed this amount and must even be lower. Thanks to this, you will know exactly what maximum loan amount you can apply for.
Unpaid receivables registered in the BIK, BIG, ERIF and KRD databases
Most loan companies that implement a responsible lending policy check clients in the debtors’ bases, so this may be another reason for rejecting your application. If you have an entry in any of the databases listed above, you must first read the information on the lender’s website. Usually, companies openly inform with which databases they cooperate and what entry may be a barrier to receiving payday loans. The situation of each client who appears in the debtors’ database and applies for a quick loan is considered individually. Entries for debts from other loan companies or unreliability towards business entities will certainly result in rejection of the application. However, if it is a single debt with a small amount, it may not be an obstacle to receiving additional cash at a non-bank institution.
Errors in completing the registration form
When we fill out the registration form in a hurry, it is easy to make a mistake. And all kinds of typos, mistakes in basic data such as name, surname, address, zip code or pesel number may be the reason for rejecting the application. Also, incorrectly provided phone number or e-mail will prevent further inference because we will not get the data to confirm the registration. Therefore, it is better to devote an extra moment to thoroughly checking the entered data, than to repeat all these actions in case of a mistake. Another important aspect is the verification transfer, which is used to confirm the identity of new customers of the company. The basis for positive verification of our identity is the compliance of the data previously entered in the online form with the personal data on which our personal account in the bank was created. It is worth remembering that the verification transfer must be made from a bank account, which belongs only to us, which means that it cannot be a shared or business account.
An unpaid loan from another company
Many loan companies stick to the principle of one customer – one loan, which means that at the same time the user can have only one commitment. Another loan can be taken only after paying off the previous one. Some companies require you to wait a few days, while others can submit an application as soon as the repayment for an earlier loan is credited. In addition, there was a tendency in the non-bank loan market to expand the company’s reach by creating additional brands, which is also important for borrowers. A customer who has a loan, e.g. from a Provident, will not receive additional cash from Snapiloan at the same time, as they belong to one owner. Only a few loan institutions allow for an additional commitment. This is done, for example, by Hypocredit, which gives you the option of matching additional cash to your loan, provided that we have no maximum liability. So if you have an outstanding loan then it will most likely be an obstacle to getting another one.
Lies in the registration form
Lie on the form? Unfortunately, this is not an isolated case in the loan industry. Declaring your financial situation not entirely real for the purpose of taking out a loan may not be common, but it happens often. Some intentionally bend the truth to increase their chances of getting quick cash. The most common cases are overstating income or concealing debts. This is definitely not a good method. Most non-bank companies do not require certificates, however, they have other ways to verify our data. It can be a phone call to our employer, checking debtors’ databases or verification via Facebook. These are just a few ways to check if a customer is providing truthful information. That is why it is worth remembering that we are working to our disadvantage by lying to the lender because we lose the chance for a loan not only now but also in the future
Don’t worry about rejecting your application once. If the reason for refusal is not numerous entries in the database of debtors – nothing lost! We can try our hand at another lending institution because lenders’ decisions are largely dependent on company policy. Factors that can be decisive in one company will be completely irrelevant in another. It is not worth getting discouraged.