Imagine you have a hard time and need to access an online loan as soon as possible. You already researched some options, filled out your application and you think everything is in order, when suddenly the financial institution confirms that your loan was denied.
This is perhaps the worst news you can receive, because you need to solve your problem anyway.If you recently requested a loan online and again your application was rejected, you are interested in reading this note.
Why was my online loan application rejected?
The reasons why a financial institution can deny an online loan application are very varied, however today we want to talk about the most common reasons for you to keep them in mind the next time you want to get a loan.
You do not have a good credit history
This is the most important reason why an online loan application is denied. If you acquired a debt (either a loan or through a credit card), you must make sure that you fully comply with the payment of the debt in time so as not to be reported at the risk centers.
Remember that all financial institutions consult information at the risk centers to know the current and previous debts of a person, as well as their payment behavior. If in this report they see that you do not pay your debts on time and you currently have many loans or debts, it is most likely that financial institutions will not accept your loan application.
You provided incorrect or altered information in your request
Believe it or not, this is an important factor. At the time of filling out the application, you must do so using true information. Some people provide false or incorrect information in their application, thinking that they will be more likely to have their online loan application approved and do not realize that this, instead of helping them, harms them more.
Keep in mind that all the information provided will be reviewed in detail during the evaluation and if the data does not match, the request will be denied. When you fill out an application make sure you enter the data correctly and that they are correct.
Your sources of income are not clear
Having a clear and stable source of income is essential for a loan to be granted, since financial institutions need to know where you will get the money to pay.
When doing the evaluation, it will be analyzed that, according to the income you report, you will have sufficient solvency to be able to pay the fees on the corresponding dates.
Be sure to report your income correctly, as in most cases you will be asked for proof of income.
You have other debts
With the information you provided, financial institutions will calculate to know what percentage of your income you are destined to pay debts and other expenses. This way they can determine if with the level of income you currently have, you will be able to face this new debt.
If you currently have other debts (either other loans or with credit cards) and your income level is not enough to cover them, your application can hardly be approved.
You used your data to request a loan for someone else
Even if you don’t do it with bad intentions, helping someone else get a loan using your data can be harmful to you. Consider that if that person does not pay on time it is your credit history that will be affected, given that before the risk centers and financial institutions you are the one with the debt.
The best thing is that you do not lend your data for topics as delicate as this, because if in the future you need to access some financial product, it will be more difficult for you.
Not having guarantees or guarantees
For banks and some of the financial institutions this is one of the requirements to grant a loan, mainly when it comes to higher loan amounts. Before applying for your loan, investigate whether it is a requirement to have a guarantee or guarantee, so that you are not surprised in the process.
Now you know the main reasons why a loan application can be denied, however, as we said at the beginning these reasons are very varied and depends on the type of loan you are requesting. Focus on improving your conditions (such as ability to pay) and follow our recommendations to make your next application successful.