Last Updated on January 4, 2021
Rejection of a loan application is the authority of the bank. The problem is, banks do not want to reveal the reasons for the rejection. The bank never gave a detailed explanation of why a loan was refused.
That’s general policy and you must be furious.
You will be surprised when you are rejected without explanation, and you feel more shocked when you know the reasons. The borrower always feels that all the conditions have been met and have the ability to pay the installments. Why is it denied?
Anger is sometimes even more pronounced when in urgent need of funds. It does not reveal why an application is rejected because the bank will most likely want to avoid manipulation of credit applications.
By knowing the specific reasons for rejection, the borrower can make changes to information or other things so that the loan is approved. However, not all rejection is due to the manipulation of data or information. Some things are caused by the borrower’s negligence in providing information and documents.
If you want to get a loan, you can check https://www.a1credit.sg. Getting an online loan is the best choice to get some money. However, you cannot borrow a large amount of money depending on the company’s regulation.
You can get a loan between $500 up to $3000. You can contact the provider to know more about the loan and how it actually works.
When you have submitted a loan application to many banks or loan providers and always get rejected, then why do you have to do next? Can you still get a loan?
Reasons Why Your Loan Application Is Rejected
You put incorrect Data and Documentation
Usually, when going to apply for a loan, the bank will ask you to fill out personal data on a form. Make sure you fill it carefully so that there is no incorrect data. In some cases, credit applications are denied because banks may fail to verify your telephone number.
Also, when attaching supporting documents, make sure the contents of the document are still legible clearly when photocopied. Also, check that all of your document requirements are complete. This not only prevents your application from being rejected but also saves you time from going back and forth to the bank.
You want to borrow a too large amount of money
You certainly apply for the amount of loan according to your current needs. But the bank has its own calculation standard to assess the loan amount that suits you as a customer. These provisions are taken based on your current financial condition.
Banks will usually evaluate the ability to pay prospective borrowers through conditions of savings and also your assets such as houses and vehicles. If the credit you submit is too large compared to your ability to pay, the bank will refuse your credit application.
Your salary is not according to the term
Did you know that some banks have a condition for the amount of income for customers who apply for credit? Well, most banks provide a minimum salary requirement of at least $200 per month. Of course, this is done to anticipate credit risk in arrears by customers.
Your steady income shows your ability to pay. So before submitting, make sure your amount of income is in accordance with the conditions, and the amount proposed is also balanced with your ability to pay.
You do not have an active credit card
Some banks require that customers must have an active credit card for at least 1 year to apply for a loan. An active credit card means that credit cards are still used routinely and are still being repaid. This is because the bank wants to see the trend of spending and also your installment payments.
But this does not always apply in all banks, and also in all types of loans.
Previous Credit Payment Substandard
If you have applied for credit before, the payment of substandard installments can be the reason for rejecting the new application. Have you heard about credit History? Basically, it is all about credit history owned by customers who evaluate how smoothly your credit repayments.
The data is stored in the Debtor Information System of the central bank and can be accessed by any bank. If you still have delinquent credit bills, that will worsen your credit score. Therefore, it is very important to pay your credit bills on time so that subsequent credit applications remain smooth.
Also, avoid prolonged minimum payment because this can also worsen your credit score.
Things to do if you are rejected everywhere
So, how can you get a loan after being rejected everywhere? Fortunately, you still have the opportunity to get a loan. In this case, you actually can count on an online loan provider.
Nowadays, there are so many online loan providers that offer fast loans with some easy requirements. Compared to a bank loan, this online loan is more flexible and faster. You do not have to wait for a long time to disburse the loan.
In addition, you do not need to worry about the requirements. Even if you do not have a job, you can still borrow money online. All you need to provide is an ID card and phone number. You can sign up for getting the loan on the official website.
In conclusion, there is always a big possibility of getting rejected when applying for a loan, especially if you want to borrow money from a bank. A bank may require a lot of requirements and you may be rejected so many times. You should not be sad because you still have an alternative.
In this case, you can borrow some money from an online loan provider. Still, you have to choose the best online loan company that offers an easy process and low interest. Anyway, it all depends on your decision and make sure that you understand all of the policies and conditions.