Rejected loan? What could be the reasons for this?
For a negative credit decision and negative attitude of the bank to the submitted loan application, there may initially be ample reasons that lead the requested credit institution to decide negatively on a loan request and refuse to pay out the hoped-for loan.
As a result, the applicant is unfortunately denied the money that was initially thought to be secure. Practiced self-deception will certainly not lead to success here, analyze why the bank said "no": Because there may actually be some solid reasons why banks decide the way they do, to be exact, 10 reasons!
Banks (as a rule) do not decide arbitrarily!
Also in the institution base there are lots of new internal requirements that the future customer must strictly comply with. Although bankers certainly have some discretion when making decisions, it's usually only a matter of minor deviations. Nevertheless, the banker wants to bring his given product to the customer and tries (everything?) to allow the customer to get the loan. If the loan application is rejected again, the applicant often feels incomprehension for the dismissive attitude. Certainly understandable.
But what could be the reasons for this decision? Usually, one of the reasons listed below is solely or collectively responsible:
10 Reasons Bankers Will Turn Down a Loan Request
Compare the reasons with your situation, one of the following comes into consideration?
1. Your employment contract is currently still in the probationary period… By law, the probationary period is six months. Within this period, your boss can terminate you at any time – without giving any reason.
2. Your employment contract is fixed-term and ends on a fixed date… As with probation, a fixed-term employment contract is a "nogo" when it comes to credit. The lending institution has no collateral, so applying for a loan at this time seems pretty hopeless.
3. Your personal credit report is not unencumbered… At "normal banks" borrowing is increasingly problematic, because in the absence of creditworthiness, hardly any banking house will respond to the applicant's request for credit.
4. Your income is unfortunately insufficient for loan repayment… One of the most common reasons for rejections is likely to be due to the lack of, or. lie too low in income. If the income is not sufficient for living expenses, the bank rejects the loan. Unfortunately, there is no room for negotiation here!
5. You are an entrepreneur, i.e. self-employed or freelancer… In Germany, it is a tradition that tradesmen have extremely bad cards when it comes to financing. The calculation of the "taxable income" is quite complicated and not so easy to understand. In addition, the levels of income are sometimes subject to wide fluctuations. People who are in employment clearly have an advantage here.
6. Direct debits have been returned and not executed, checks have "bounced"… For the processing banker, any anomalies can be identified that indicate that direct debits could not be honored in the past or checks did not have any coverage. A sign of gross unreliability!
7. Any transfers to debt collectors Conspicuous transfers can be identified in the documents handed over. The banker will ask you what you have or had to do with this collection agency. For example, did payments remain unpaid in the past, which could indicate unreliability? A good banker works for his company, he checks the documents carefully like a hyena. If reasonable doubts about your reliability arise, you are quickly in need of explanation!
8. Your current account is considerably in the minus – The Dispo in the long run far exhausted… You have exceeded the overdraft facility agreed with your house bank for quite some time, the overdraft is only "tolerated". They did not keep the agreements made with the banker and continued to overdraw the account. It is not uncommon for this to be a tangible reason that few consider.
9. You simply forgot about your other loan with a third-party bank… The installment loan from three years ago, taken out with XY Bank, you have now foolishly not even specified. If the banker asks you what other obligations you have, you should really "drop your pants" and tell him everything – he'll find out anyway!
10. Their age is too high for the banker They enjoy the best of health and are still in really good 'ole health. Your banker is now telling you – more or less diplomatically – that he can't approve you for money because you're over the bank's internal age limit of z.B. Have already sadly passed 65 years of age. It's quite concerning, but it's done by the big banks on a daily basis. If you have already been turned down for a loan, you may already recognize what reasons may have led to the loan rejection in your particular case ;-((
Expert tip: But you shouldn't "throw in the towel" right now and overreact badly. Depending on the reason you were denied, there are sometimes other means and ways to get a loan.
For example, the credit broker Bon-Kredit offers to arrange a loan for you even if you have problems with your credit rating. The advantage and u.A. The reason we recommend this provider is that you will not lose money here, because even if a loan rejection is made, you will not pay a cent for the preparation of the offer. Guaranteed.