5 Primary Reasons Your Personal Loan Application Will Be Denied

8 June 18

Loan application

When you need a personal loan quickly, you don’t want the banks or other financial institutions to deny you the loan. It’s imperative that you review your financial record to ensure lenders will want to approve your loan application for the amount requested. 

Terrible Credit History

Financial institutions will look through your credit history and financial records to determine your ability to repay a loan. The credit score is usually the way banks will determine your creditworthiness. If you have a low credit score, it may reflect a poor history of repaying your debt or that using too much of your current credit limit.

Current Debt

If you have multiple loans already, lenders will look at your income to see if you can handle any new loans. Lenders look closely at the debt-to-income ratio. If they feel you cannot handle any more new debt, they will decline you for a loan.

Not Enough Income

Income proves to lenders that you can handle paying back their loan in monthFly installments and in the timeframe they stipulate. If you don’t have enough money to pay your current debt back along with a new loan, lenders will decline the application. Most lenders have a minimum income threshold, so make sure you meet this first.

Insecure Employment

Lenders are very wary about lending money to people who are self-employed or don’t have job stability. Many lenders request consumers to have a stable income before they approve a loan application. But if you have been working for a short time, you can visit www cashnetusa com login, in order to find short-term loans. 

Multiple Loan Applications

Every time you apply for a loan, the credit lender will access the credit report and score. This is called a hard inquiry, and the more you have, the lower your score gets. Too many hard inquiries at one time mean you are in dire straits and the lenders are likely to reject your application for a personal loan.