Nowadays, it is easy to fill out a loan application online and you can usually get an application right away. But what if the applicant is disappointed?
Why is the loan application rejected? Good Finance collected the 5 most common reasons for rejecting a loan application.
Always fill out a loan application with a thought
Almost all services are now available 24 hours a day, with online society serving customers anytime, anywhere. This way anyone can easily apply for a loan online at any time.
While it is possible, it does not mean that you may need to apply for a loan anytime and anywhere without even knowing it. Except that a loan is not recommended at the whim of the Applicant, a carelessly completed loan application may ruin your chances of getting the loan you need.
One of the reasons that led to a loan application being rejected is a mistake in the application itself.
The 5 most common reasons are:
- invalid application
- a loan agreement that is already open
- credit default entry
- problems with previous repayments
- risk assessment of our company
Risk assessment and payment history issues
A credit default is a clear reason why a loan application is rejected. The lender must adhere to responsible policies and good lending practices. It is not wise or good credit to grant a loan to a person who is already experiencing serious difficulties in meeting his or her financial obligations.
As an online loan application does not usually require collateral or even proof of receipt, there are other ways to check your solvency.
This means that the Payment History is checked from the Customer Information system, which contains payment behavior information. This information also influences the loan decision.
The risk assessment refers to an internal assessment of the borrower’s financial position and solvency. It is a summary of all the information provided in your loan application, which is the basis for a loan offer or for either approving or rejecting a loan application.
When you start filling out a loan application, make sure you have your online banking credentials, as a loan application always requires strong identification. Usually, authentication is also possible with a mobile certificate, which many already use.
Check out the loan price list or use the loan calculator to calculate any loan costs. This will give you a good idea of what you can apply for and what it might cost. At the same time, you get an estimate of the monthly installments the loan will have.
Think about what kind of loan you need. Is a one time loan better for your needs or Do you need a flexible loan that can be deposited in small installments? Good Finance offers both consumer credit and flexible credit for you to choose from.
Check out Good Finance loan products.