All your loan applications are rejected? Let’s look at the reasons for declining applications and find out where to get quick cash loans if all the banks rejected your application. We will advise how to get funds without refusal, review the benefits of online cash loans, options to get and repay them. Knowing this information, you can get the necessary amount of many in the shortest possible time.
Getting loans in the current economic situation has become a big problem and it’s not even that your credit history is crucial. In general, there was a decline in the credit sector by 63% compared to the previous year. But we know how to solve this issue and what to advise for getting cash loans. With a loan approval, you can get the necessary money and quickly solve your financial problems or close debts.
18 most common reasons your loan application is rejected
We want to find out what factors affect the bank decision on a loan rejection. Perhaps you will determine what was the reason for your individual case. We offer to read all our arguments and draw the right conclusions to avoid further mistakes and loss of time. So, let’s start:
- The main factor that may cause a loan rejection is a bad credit history, which indicates you were not responsible repaying your previous debts. If there were delays of more than 3 months, then it can be considered that your reputation is “spoiled” and it will take a long time (usually from 1 to 3 years) to restore your credit score;
- Too many loans – if you have 3 or more loan products, then you can hardly expect a positive decision on your next loan, as many companies do not work with such customers;
- A criminal record – this fact is like a “red rag”, especially when it comes to serious crimes. In this case, you can count only on a consumer credit, for example, on a TV, computer, apartment, car;
- Debt to bailiffs – if you have problems with debt repayment and a court decision has already been made, in this case, you can only expect a loan rejection. The exception is a few administrative fines;
- Insufficient income. As a rule, the monthly payment should not exceed 40% of the official income. If you have insufficient wages, the loan amount will either be reduced or completely denied. This is due to the fact that, in addition to the client’s expenses for repaying a loan, there will be expenses for utility payments, food, current expenses and so on;
- Your relatives have a poor credit history. If your close relatives (parents, brother, sister, wife, etc.) have debts, this is the reason for refusing a loan because the bank views this as “financial manipulation” and a way to solve “other people’s problems” at your expense;
- Early repayment. If you repaid a 1-hour payday loan in less than 3 months, the financial institution incurs losses, which means that in the future it can refuse to cooperatу with you without explaining the reasons;
- A large number of dependents. They include not only your children but also your unemployed spouse, as well as parents of retirement age. If there are more than 3 dependents, access to same day cash loans is unlikely to be possible;
- Availability of new documents. If your identification document was received less than 3 months ago, you will most likely be denied;
- Work experience. You must be employed in the last place for at least 3 months. Otherwise, the possibility of getting payday loans is low;
- Age of the client. If you are young, up to 25 years, or you are on pension – there is a high risk of non-return of funds, accordingly, the rate of loan approvals for these categories is very low. Men under 27 without a military ticket also included into this category;
- Disability. Citizens having 1, 2, and 3 disability groups can only get the amount that their pension allows. And in many cases, representatives of groups 1 and 2 can not receive a payday loan online at all;
- Refusing insurance. Despite the fact that insurance is “voluntary” most companies do not issue a loan without additional guarantees for its return or increase the interest rate because of the increased risk;
- No property. Any property suggests that you are a “financially secure person” who iz able to repay a debt in any life situation, even if it is necessary to sell the property. And if you have no property, the lender may decline a loan;
- No credit history. Almost every financial institution tries to avoid clients who did not work with the credit system before;
- A large number of loan applications. If you filed 3 or more requests for a short period of time and received a negative decision on them, repeated appeals do not make sense because the banking program “automatically” excludes you from approval;
- “Fresh” loans. If you have made less than 3 payments, the approval of a new loan product is impossible;
- Unofficial income. A large number of citizens receive unofficial wages and this may also become a reason for a loan declining.
There are also other reasons for a loan rejection, for example:
- The security service was unable to reach your employer;
- The stated money purpose is not true;
- Negative feedback from your by colleagues or relatives;
- Mismatch of the provided personal and working data;
- Fake income documents.
How to avoid a loan rejection?
This issue has become important for many people. Now we have already determined the main reasons for a loan rejection, and we need to find out how you can get a loan with minimal risks. Let’s follow all these steps to “achieve” the desired goal:
- Never buy fake documents from unknown people – this can lead not only to rejection of the loan request but also to criminal liability;
- Do not submit more than 3 applications at the same time, because if they are rejected, the remaining banks will “automatically” decline your application;
- If your work experience is less than 3 months at the current place of work, do not rush to the banks, but wait until the period of work which will meet the established requirements;
- Determine the amount that really corresponds to your opportunities and that the payment does not exceed 40% of wages. If there is a second job, indicate additional income;
- Provide the maximum number of documents, including documents on property – this will reduce the interest rate and increase your chances of a positive result;
- In advance, inform the contact persons, colleagues, relatives, so that they confirm your personal and working data;
- Be sure to accept loan insurance, as this will increase your chances, and at the same time lower your interest rate;
- If you are “young” or have no credit history, start with small payday loans or take a consumer loan to buy household appliances, car, or motorcycle;
- If you have an unofficial job, ask your employer to make an oral confirmation of employment by telephone or to prepare a “free form work certificate”;
- Do not try to apply for a loan, if you recently received identification documents or they are damaged – you will only waste time in vain;
- If you have a bad credit history, criminal record, delays (more than 3 credits), we recommend that you abandon the goal of obtaining banking products and pay attention to cash loans with no credit check up to $1000.
5 Tips For Getting Your Loan Approved
In contrast to the “banking system”, microfinance organizations give an opportunity to receive money to all categories of citizens, starting from the age of 18. At the same time, they work with clients even if banks refuse working with them or there are criminal records or debts to bailiffs. In general, this is a very “loyal system” and has only a few requirements. But you need to follow certain rules to get payday loans online:
- Identify the amount of income that will ensure timely payment of the loan;
- Submit only reliable information about yourself and your work;
- Indicate a stationary work or home phone number;
- Inform your friends, relatives, and colleagues that a lender may contact them to verify your personal data;
- Do not specify in the application such purposes as payment of debts, treatment, apartment rent, training and so on. You’d better specify the following moany goals: repair of a car or an apartment.
Where to get a loan?
To resolve your financial difficulties, pay attention to micro financial companies that provide customers with cash loans online on the bank card or account. Sometimes, you can get funds in their office or through their partners.