Why Banks Refuse Credit And What To Do?
It is not always possible to get a loan the first time. The Bank may refuse to issue the necessary loan. There is no need to be upset, but also to discard this fact too. It makes no sense to go to another lender, not knowing which parameter does not suit financial institutions. Have to repeatedly step on the same rake and get turned down. What prevents you from using Bank loans and how to get rid of this obstacle?
How to clarify why the loan is denied?
The most annoying thing is that no Bank is obliged to report the reasons for its decision. And the most difficult task now; how to find out why the Bank refused a loan. You need to get out of the vicious circle, which is not very easy because the secret of a negative decision you will not open. Even upon written request, it is impossible to obtain from the Bank the reasons for refusal of the loan. There is only one official option to find out the truth to listen to the Bank’s opinion in court, for example, if you decide that the refusal of a loan is associated with discrimination.
To find out why the Bank refused a loan, it is possible and alternative methods of intelligence; to inquire about the possible prerequisites for such a response to your application directly from the employee of the credit institution that accepted your application. The problem is that the average employee is not always available intermediate solutions and familiar with the algorithm of the scoring system of evaluation of potential borrowers. More information can be provided by a credit broker who is familiar with the requirements of various banks and the main controversial parameters that prevent getting loans.
What if all banks refuse loans?
Applied for a loan to several financial institutions and they responded to the application in the negative. All banks refuse a loan-what to do? You must choose one of the following ways to influence the situation:
- Change the content of the package of documents.
- Rethink your needs and requests by asking for a smaller amount.
- Resort with using intermediaries.
If the preliminary decision is positive during the remote application and the refusal to issue sounds only after a personal meeting with a representative of the Bank, it is possible that the future client seemed unreliable, or brought insufficient documentary evidence of their solvency and integrity. Sometimes it is enough to add only one certificate of employment or a copy of the employment contract to the lender entrusted the requested amount.
It is suspicious when a wealthy person requests a small amount for a long term either the income is not really that high, or he is going to hide the existence of the loan from the family. The Bank will refuse in such a situation. But in all other cases, the most common cause of a negative decision is overstated requests and a potential borrower is better to moderate his appetite.