The increasing number of needs that must be met makes people apply for money loans. Especially at this time, the loan application can be done online. But not infrequently your credit application is rejected by the lender.
The reason can be very trivial, you know. Although this is a common cause, many people don’t know about it. Your online loan application may be rejected even after pre-approval.
Before making a loan application, read the explanation below so that your credit application is not rejected.
Your phone number is not active
When applying for a loan, the lender (credit analyst) will definitely conduct an interview related to personal data by phone. Therefore, make sure you fill in your contact information correctly.
Credit applications can be denied if the lender has difficulty contacting you. You have completed the documents, but you cannot be contacted. Of course, it makes them disappointed until they finally cancel the approval. You should always turn on your mobile device so they can call you.
They cannot contact your reference
Besides you, the loan provider will also contact the reference you specified. References can be husband/wife, parents, and superiors in the office.
Also, make sure the reference phone number you provided is correct. If the reference cannot be contacted, then they will not continue the process despite you having complete documents.
They cannot read your documents
Even though all the documents provided are complete and according to the condition, your loan application will still not work if the document cannot be read clearly.
Usually, this problem occurs during the copy process. Make sure the copies of your documents can be clearly read before giving them to the lender.
Verification data failure occurs
In the credit application form, you will be asked to write down your personal data along with a number that can be contacted. Be it your personal number or the number where you work. Make sure the number you write down is correct and can be contacted because the number will be used by the bank to verify your data.
A verification failure occurs when the bank cannot contact the number you provided. So, try to give a number that is always ready to answer and can provide valid information about your personal data.
Your credit history is not good
The central bank has a history of borrowing money from banks and non-bank financial institutions. If based on central data that you are declared to have a bad credit history, then your loan application will definitely be rejected despite you having completed the documents.
They cannot trust you for your bad credit history. They need trustworthy clients who can pay off the loan on time. Unfortunately, they do not believe in you anymore.
You include Wrong Information
When filling out the loan application form, make sure you include true and accurate information. For instance, you must include the correct income, home status, and employment status.
You should not lie for your condition. The credit analysts will definitely do a field check. If the facts do not match or you lie to them, the loan application can be immediately rejected. So, it is important that you tell the truth about your condition so that everything will go smoothly.
The use of credit cards
One other requirement for applying for a loan is having a credit card. The reason, the pattern of using a credit card will reflect your financial condition.
Credit card usage history will also be taken into consideration to approve loans. If you are accustomed to using 70% of the limit or even spending more than the limit, applying for a loan will be difficult to process.
You request a too large amount of loan
If you get a loan from a conventional bank, you may get as much as the loan you want. But, if you count on an online loan service, you cannot borrow a large amount of money.
A conventional bank can give you a loan up to $100000, but you may only get $1000 for an online loan provider. Therefore, before you get an online loan, make sure that you know the amount of the loan. If you need more than $1000, then you can get it from a bank.
However, it all depends on the loan provider policy or requirement. Hopefully, you can get a loan provider that offers unlimited loans despite it being rare.
You do not have a credit card
Especially for certain loan products, lenders will usually provide certain conditions such as active credit card ownership for at least 1 year. An active credit card means that the credit card is still being used regularly and the payments are paid.
After pre-approval, you may be rejected because you do not have a credit card. Still, it also depends on the loan provider policy. Some providers do not require ownership of credit cards.
The location and the house condition
This applies to applications for Home Loans. Even if your income and other requirements meet the lender’s requirements, your application may be refused for this reason. Just so you know, banks are usually easier to provide mortgages if the location of the house is close to the highway, can be passed by cars and free from flooding. As for second homes, banks will usually look at the condition of the house. The newer a home, the easier the loan is disbursed.
Finally, those are several reasons why your loan application is denied even after pre-approval. Complete documents are not enough. You also have to be contacted easily. You have to show that you really need money so that the lender will lend the money to you. In addition, you also must have a good credit history so the lender will trust you, otherwise, you will be rejected. Overall, you have to choose the right loan company that can lend you some money that you need.