Although each company has its own restrictions and can put more or less requirements when lending money, many of these policies are usually common. Thus, we are going to talk about the most common reasons that lead financial institutions to deny the request for a loan.
Some entities consider that there are ages that may have more difficulties when repaying a loan. They are usually too young or too old. If you are less than 23 years old or over 65 years old, in some cases it costs you more to convince the entity of your solvency
Bank account in your name
Although it may seem strange, there are people who pretend to get loans without even having a bank account in their name. However, if there is something that leads directly to a denied credit, it is lacking a bank account. No credit institution, be it traditional banks or modern companies that operate completely online, will approve a personal loan to an applicant who does not have an account in his or her name. Not only in traditional banks is one of the first things they are going to ask.
Insufficient, irregular or unprovable income
Financial institutions need to make sure that you can meet the repayment of the loan you are requesting. So, if they consider that with your current income you will not be able to meet your payment obligations, it is very likely that they will not approve your request. Not having a payroll does not make things easier, although it is possible to apply for some mini loans and fast credits online. As long as you can justify some kind of income – sufficient, periodic and demonstrable. A pension, unemployment benefit or proof of income tax, in the case of the self-employed, may be as valid as a payroll when assessing the applicant’s solvency level to know if he will be able to return the requested amount.
If you have previously had problems in dealing with a payment with a lender, it is very likely that your loan will be denied.