Reasons for rejecting a loan application
Sometimes it happens that we are refused a loan. See what are the most common reasons for this.
Loan companies at every step ensure that getting a loan from them is a piece of cake – two or three clicks and we can get as much money online as we need. Following this lead, we choose one of the lenders, fill out the relevant forms, send them and … the company refuses to grant us a loan. Why is this happening? And what can we do to prevent such unpleasant surprises from meeting us? Below is a list of the seven most common mistakes that decide to reject our loan application.
Errors in the content of the form
The most common reason for potential borrowers’ claims to be faulty – though it may be hard to believe – are all kinds of typos. We all think that we have entered our personal data, address, date of birth, social security number or ID card number so many times that we cannot be mistaken. And yet! Meanwhile, even a minimal letter change (for example, the surname Kowalski written as ‘Kowlaski’) will be enough reason for the lender to reject the application. Therefore, we advise you to be particularly focused when entering the required data into the form and double checking their correctness after filling in – it is better to lose a minute to read what you have written again, than to lose your temper after a decision that is unfavorable to us.
Negative history in the Credit Information Bureau (BIK)
One of the myths about the behavior of loan companies is that they do not check the status of the client in BIK . This is not entirely true – some lenders thoroughly examine their potential debtors in this database. For these companies, the weaker the credit history, the less chance of a loan. If we are aware that our “past” as a borrowed person is too glorious, it is better to immediately apply to one of the companies that do not look into BIK – their lists can hardly be found on the web.
Presence in other debtors bases
The same applies to other available databases recording arrears towards creditors, i.e. the Economic Information Bureau (BIG) and the National Register of Debtors (KRD). The “black list” can be found for arrears in payment of water, electricity, internet or mobile phone bills, although of course you don’t lose all your credibility due to a delay of several days paying 50 zlotys – to be in the BIG register, the amount of debt must exceed PLN 200 and delay in payment at least 60 days.
Lenders usually set a lower and upper age limit for a potential customer. Some loan companies will provide financial support to even 18-year-olds, and much more often the youngest debtor must be at least 21, 22 or 23 years old. The upper limit is different for different entities – most often you can meet the turning point of 65, 70 or 75 years.
The rejection of a loan application may be due to low creditworthiness. For this reason, the unemployed have to say goodbye to the payday payday loans, because lenders primarily look for clients with a steady income (arising from employment contracts, work contracts, mandate contracts, pensions, etc.). And this may, however, be insufficient if we are financially obliged in other fields (e.g. to pay maintenance). Nevertheless, let’s present real creditworthiness, let’s not conceal other obligations (lenders can find out a lot of things about us today through social networking sites), we just don’t use a lie.
Identity verification failed
Identity verification is carried out in the process of applying for a quick non-bank loan. It usually takes place by making a transfer of a symbolic amount (from 1 groszy to 1 zloty) to the account of the loan company, so that it can compare the details of the bank account owner with the data entered in the loan application. The lender will suspend further operations if there are discrepancies in the data. To avoid this, do not transfer money from joint accounts or belonging to other people (spouse, child, one of the parents).
An unpaid loan from another company
As a rule, non-bank entities providing payday loans assume that one customer can have a loan only in one company, and that subsequent commitments will be possible only after settlement of current ones. It is worth making sure that you give back the money we have borrowed earlier and apply for another funds with a clean account.
The best way to avoid disappointment and nerves after rejecting our application is to carefully read the terms and conditions of the lender. A rejected loan application is nothing terrible – there are a lot of companies offering such services on the market, so with a little patience we will definitely find one where you can easily lend us money. We hope it will be Ruggiero . We encourage you to use their services.