Why the loan is not approved, why the loan application is not approved, all the information about the types of loan applications and the reasons for the rejection of the loan are included in the continuation of our article. Nowadays, many people may have to consider credit options in case of urgent cash needs.
When this is the case, it is quite possible to say that loan applications and the use of bank products are very common in our country. However, there are some reasons that may prevent our loan from being approved. We have compiled these reasons for you and wanted to summarize how to apply for the right loan.
If we consider the evaluations taken by the banks, we can say that they were very careful about repayment of the loan in the first place and that they focus on this area during the loan application. Why is the loan application not approved? What are the reasons why the loan application is not approved?
What is a loan application?
First of all, we need to say that we need to make a correct application for approval of loan applications. If you apply from banks you have not worked with before, this may be quite a problem for the approval of the loan. It is inevitable that this loan application will be rejected as banks that have never known you before will consider much more detail when lending. If you want to apply for the right loan, we recommend that you first turn to the banks that know you.
For example, applying for a loan to the bank where you work has paid a salary can be considered a very valid reason for immediate approval of the loan. Since these banks know the amount of your monthly salary, they will calculate your monthly income-expense balance faster and approve your loan instantly. When you apply to banks that do not have a previous work history, it is quite normal for the bank to ask for a certificate of income from you. Unfortunately, such cases will extend the loan application process and result in its rejection. You should also keep in mind that rejected applications are seen by other banks.
So why are your credits not approved if you think you’re eligible to use credit? What are the reasons why your credit will be approved? Let’s examine it together.
Why is the loan application not approved?
As we mentioned in the first part of this article, there are a number of reasons why your loan application may be disapproved. For this reason, we would like to remind you that if you make applications by paying attention to the details given below before applying for a loan, the possibility of approval of your loan and the approval process will accelerate. Why is the loan application not approved?
Low Credit Rating and Poor Record
Of course, you know that the first criterion that banks look at when making a credit assessment is the credit rating. If you have been subjected to transactions such as irregularities, delays and legal proceedings in the payment of bank products you have previously used, these transactions have probably lowered your credit rating. As you can see, a low credit rating is a very good reason for disapproval of loans. Before applying for a loan, you can learn your credit rating from the related banks. In addition, credit rating by reading our article on credit is low, you can use loans with low credit ratings. However, if you have enough payment irregularities and legal proceedings to enter the blacklist, we must regret that it is increasingly difficult to use credit.
Insufficient Monthly Income Balance
If you are applying to the bank where you get paid to use your credit, your credit is a quite a high probability of approval. However, it is not possible to approve your loan because you receive a salary. If you use various products (credit card, km) in banks and your limits are not commensurate with your income, banks may also see this as a risk. You have a much higher credit card limit than your income, and if you have used it, the bank may not consider opening a more credit and may reject it by evaluating it in the risk group.
Wrong and Missing Information and Application
One of the reasons why the credits are not approved is to apply with incorrect and invalid information. If you enter your address, income, or phone-style information incorrectly, banks may not be able to verify it, so they may reject a loan application directly. Another important consideration is income information. If you report income when more than one bank, the bank must remember that he might go on a road like this verification. Unfortunately, if you cannot document your income, your application will be rejected, as banks may request an income certificate during the loan application.
Multiple Applications at the Same Time
Making multiple applications at the same time may be one of the biggest mistakes made in loan applications. If you apply to more banks to try your luck, these banks may not be able to extend credit to the customer as they will be seen by other banks. If rejected, how many applications in different banks, you should note that the approval rate of new applications that will be reduced.
What should I do if my credit application is not approved?
If your credit application is not approved for the above reasons, you should take very correct steps at this stage. It is very important that we make the right choices as each rejected application will greatly reduce the likelihood of other new applications being approved. For example, if your application from the bank X has been rejected due to lack of income, it would be wrong to have the same amount of your application to bank Y. Other banks may also take the same action, as the lack of income is not a justification for the banks. For this reason, we advise you to learn from the employee of the bank for all the reasons why the loan was declined.