Each of us, who has ever faced a shortage of money and the search for a solution to this problem, most likely applied to the bank for a loan – as the most obvious way out. And like many others did not receive the approval of the application. To this, often, you had to spend your precious time. So why are they denied a loan? Let’s try to figure it out.
Possible reasons for refusal of credit from banks
Most often, it will not be possible to get an explanation of the reason for refusal of a loan from banks or other financial organizations, since they are legally exempted from this procedure. But from experience there are several weighty arguments why you are denied a loan:
- Insufficiently high solvency of the applicant. Simply put, bank employees believe that your salary will not be enough to pay off a loan. For example, if the monthly payment is more than 30-35% of the income you specified.
- If you already had to apply for a loan in any bank, and you did not repay the amount in the indicated period, it is likely that you were blacklisted. This can be a significant reason for failure.
- You will find yourself in the lists of unwanted bank customers even if you have loans in other financial organizations, even if you regularly and in the right time contribute the necessary amount to pay off the debt.
- The presence of utility payments debts, alimony payment obligations and any other debts may also be the factors why they are denied a loan.
- Finally, you are judged by their appearance – untidy clothes or the presence of tattoos, a slight smell of alcohol and other indirect signs, sometimes absurd, can be fatal for you and cause a refusal.
Solution to the problem
But give up early. In addition to banks, there are other financial organizations where you can get the amount you need on convenient terms. After several unsuccessful attempts to get a bank loan, you should pay attention to microloans.
Compared to bank loans, loans are more accessible – you can learn about a solution in one day, and sometimes much faster. To make an application, you only need a passport, no income certificates are needed. The amount borrowed, you can return at your own pace. The manager of a microfinance organization will do everything possible to make you feel comfortable – he will advise you on all issues, instead of conducting a strict exam on your ability to pay.