For your application for a quick cash loan to be successful, you need to match the image of the borrower, which is optimal for the microfinance organization. If you are just going to apply for a loan, or have already received a refusal from the bank or MFI and want to find out the reason, then keep in mind that in some cases, even full compliance with the declared image of the borrower does not guarantee a loan. The following circumstances may serve as stop signals for the lender when issuing a loan.
The Loan Applicant Provided False Information
You provide information that you are working in a large company, but in fact, you are not, be prepared for the fact that you will not be given a loan. However, the likelihood of this is quite high, because MFIs most often conduct a thorough check of a candidate for a loan, including calls to the employer and your friends.
Bad Credit History
If you have loans outstanding on time or loans that were paid with a large delay, then it will be very difficult to get a new one even if you made a delay many years ago. Having made a significant delay on a credit, a client can ruin his score and permanently lose the opportunity to get a loan from any of the credit organizations.
Overcrediting of the Candidate
If the applicant for credit is already repaying one or more loans, he may be denied to open one more. This will not happen if the amount of payments on all loans is small. But if the settlements exceed half of your confirmed income, the credit institution will most likely refrain from cooperating with you.
The Applicant Did Not Pass the Scoring
Many lenders have their loan assessment systems. Each bank or MFI has its credit policy, which defines the requirements of the borrower. Therefore, non-compliance with any requirements of the scoring or a negative result when passing it may be the reason for the refusal of the client to issue a loan.
What to Do in Case of Multiple Failures
The universal sequence of actions looks like this:
- Pay off debts on all open loans.
- Tidy up your social media pages. Delete all questionable posts and photos.
- When filling out a new application, carefully read the text and exclude errors.
- Indicate only your real data, do not try to cheat. Any lie will be revealed and will play a negative role.
- Request small to medium amounts. Over time, the growth of reputation allows you to take large ones.
It should not be forgotten that all credit organizations use different criteria for evaluating a client and approaches in making decisions, and there is no single formula that allows you to apply for a loan with full confidence. Compliance with the rules, principles, and factors will most likely allow you to get a loan.