In this article from best Australian online pokies real money, we will be looking at five reasons your loan request was rejected.
- Your credit score was too low
When a lender views your personal loan application, it commonly considers your FICO credit score, among other factors like your income. Your credit score suggests to lenders how good you may be at managing money. Factors like your payment history and amount owed are heavily weighed in your credit score. If you’re looking for an unsecured personal loan — a loan that doesn’t have collateral attached to it — lenders usually have stricter lending requirements. Some lenders publish their minimum credit requirements. If you fall below a lender’s minimum, you’ll likely struggle to qualify for one of its loans.
- Debt-to-income ratio
Banks are wary of lending to businesses that have existing debt with other lenders. In many cases, they won’t even consider lending to a business that has already taken financing. Since many SMB owners seek credit from multiple sources, especially during the start-up phase, this can be a major strike against them when applying for a loan or cash advance from a traditional bank.
- You tried to borrow too much
If you try to borrow more than you can afford to pay back, a lender may deny your request for a personal loan. This is because the amount the lender approves you for is based on your income and other debt obligations. After reviewing your finances, the lender may decide you don’t qualify to borrow a certain amount. For example, let’s say you try to take out a personal loan for $100,000, knowing that you don’t earn enough income to afford the monthly loan repayment. Since you’re requesting an unrealistic amount, the lender will most certainly deny you, courtesy of www.lecasinoenligne.co.
- Your income was insufficient or unstable
Along with looking at your credit score and DTI ratio, lenders also examine your income to determine whether you’ll be able to pay back your loan. Essentially, they want to make sure you can afford your monthly payments and won’t default on the money you owe. If they decide your income is insufficient for the amount you want to borrow — or if it appears unstable from month to month — the lender might reject your application.
- Your application was missing information
A lender might automatically reject your application if it’s missing key information or documents. Make sure to read over your application before you submit it, as well as upload any supporting documentation that a lender asks for. You might also call the lender directly to double check that it received everything it needed to process your application.
- Customer concentrations
Banks are often skeptical of businesses that report a significant bulk of their sales from only a select number of customers. Lenders, in general, like to see diversity in a business’s clientele as opposed to the same customers. For example, a local pub or restaurant that relies mainly on its “regulars” for steady income can present a perception problem with traditional banks.