Why Was Your Loan Application Declined? Having a loan application declined is a very disappointing experience.
You cannot possibly apply for a loan at the doorstep of every financial institution and bank in this country. Chances are if one popular bank rejects your application, then you may have your application rejected by a majority of the banks in the country.
But you may still get lucky and there could be that one bank which will not reject your application. However, chances are slim.
Representative 277.5% APR - Representative Example: Amount of credit: £750 for 12 months at £119.21 per month. Total repayment of £1430.52. Interest: £680.52. Interest rate: 140% pa (fixed). 277.5% APR Representative.
Find out why loan application declined
When you have your loan application declined, you must find out why it was declined. Don’t be in the dark and don’t be presumptuous. Do not take it for a fact that a bank, financial institution or lender has simply rejected your loan for no reason.
No organisation takes a call by looking at subjective factors. They don’t dislike you. There has to be some objective reasoning behind the rejection of your loan application.
Reasons why your loan application might be turned down
A common reason for rejection is all credit types. Ordinary people seldom check their credit scores. Most people don’t get accustomed with the credit score requirements of various lenders.
You must always be conscious of your credit history and you must find out if you have the required credit score to qualify for a certain type of loan. Speak with loan officers, get an idea. Use expert brokers if you don’t get all the help from loan officers.
Refer to online resources, check your credit score from reports of credit agencies and find out if that credit history will qualify you for the loan you are seeking. These steps can avert a situation when you stand clueless and helpless with your loan application declined.
Your loan application can get rejected if the loan to value ratio is not according to the requirements of the bank, financial institution or lender. In most cases, the lender will tell you this upfront and you can either lower your loan amount or increase your down payment.
Failing to do either would have your loan application declined. A lender may not even consider your application to begin with. At times, borrowers do push for a generous view on the matter and banks or lenders may oblige if an applicant has a very good credit score.
Loans also get rejected due to silly errors. Improper documentation, incomplete applications, lack of a certain proof, mistakes by loan officers and brokers or by applicants; all such factors will influence your chances of getting approved or having your loan application declined.
Why not apply today using the links on this page to see if you qualify for a new loan, even if you have all credit types.