According to the rules of a bank or an MFI, an employee of an organization is not required to give you a loan or explain his negative decision. The reasons of the denial can vary.
What are the most common reasons to be denied?
Experts cite the following common causes of failure:
- Problems with credit history. It is better to request it before applying, sometimes it helps to save time and choose the right tactics right away;
- You do not have a credit history. T might seem to be a positive moment that you have enough money and don’t need to lend. Tough this is also not always perceived as a positive fact, since there is nothing to draw conclusions about your good faith. If other criteria also raise questions, the probability of failure increases;
- There are valid obligations. However, they may not necessarily be problematic. The lender may consider that you already have a financial burden, and you can not overpower the new loan;
- Low salary is probably the key reason since it is considered the main source of repayment. The more money you want to borrow, the more you need to earn;
- Little experience on the last job. This increases the risk of losing permanent income due to dismissal and questions your solvency;
- Age. Although, thanks to microfinance organizations, the age of crediting has dropped to 21, or even to 18 years, for most large companies this threshold has been raised to 23-24.
Reasons that can be influenced when taking a loan
There are objective and subjective reasons. Here are some, which can be changed:
- Attempt to provide false information or fake (corrected) documents. At the same time they can even be held accountable for fraud;
- The presence of outstanding criminal record or the facts of criminal prosecution for economic items. Also smaller violations can become an obstacle;
- The status of “face value”, that is, the person in whose name the companies or organizations are registered, to which he in fact has no relation;
- People with signs of mental disorder and suspicious behavior. Banks will prefer not to risk their money and will not approve the transaction if it is likely that the borrower is insane or is under pressure from third parties.
Sometimes there are several reasons why they don’t give a loan, so it’s better to get acquainted with them in advance and assess your chances. In any case, there is always the opportunity to apply to a microloan company and get a cash loan online in Philippines. The interest rate will be higher, but when the issue with money needs to be resolved urgently, it’s just no time to figure out the reasons why a loan can be refused, it can be a real help and a solution.
The company Cashwagon has already gained a reputation as a reliable financial partner, one who is able to help even when the rest of the funds deny. Comfortable conditions, fast approval – is the basis of trust of the company’s customers.