But above all because the loan application is not accepted by the bank. Unfortunately, not all requests made are always successful.
Refused Loan: what to do?
First of all, it is necessary to understand why the funding was not accepted. If it is possible to find out why it will be possible to carry out specific actions, so as to prevent this from happening again, and therefore limit that one’s profile on the System Risk Center becomes full of negative assessments.
However, it should be remembered that the bank is not obliged to reveal the reasons, even if, more often than not, it does not spare itself in explanations.
Rejected Loan: the most common reasons
What are the reasons that push a bank not to accept a loan request?
- there are too many debts to be able to request another;
- too much money is being asked;
- negative reports (a previous delay in payments) are active which prevent the bank from proceeding;
- the creditworthiness of the customer is not suitable.
These are only hypotheses. It is advisable to go to the bottom because, only in this way, it will be possible to plan a new request for funding more clearly and effectively.
Among the various reasons that push a bank to refuse a loan, we want to focus on the most widespread, that is the creditworthiness of the unsuitable applicant to obtain a new loan.
This can happen for several reasons, such as:
- work situation deemed at risk, such as a fixed-term contract expiring;
- too many loan installments in progress;
- you have had negative reports.
What to do in case of loan refused?
We spent a lot of time researching the reasons for the loan refused because, just knowing them, it is possible to implement the right actions. For example, if the loan has been denied because there is a negative report against you, but there are no outstanding payments, you can make a retro request to find out who has made this negative report and ask for corrections.
On the other hand, if the loan has been denied because the work situation is not suitable (fixed-term contract expiring etc…), the bank can be provided with documentation that reassures it about the stability of the workplace.
And again, if the loan has been refused because there are other requests from other banks, it is possible to request a loan release from the other credit institutions, which will attest to the fact that these loan applications have been waived online or with other banks.
Finally, if the loan was refused because the bank claims that the customer has too many installments in progress and cannot sustain a new debt, the entire debt situation can be studied with the same bank or with other financial companies.