When we need extra cash in order to purchase a car, a home or start a business, we always turn to banks to get loans. However, not everyone can secure a bank loan for a number of reasons.
Are you wondering why your loan application always gets denied even if you have submitted all the necessary requirements? Unfortunately, banks don’t reveal the reason/s why they reject your application as they have to check on other banks if you have a delinquent account.
Here are some common reasons why your bank refuses to approve your loan:
- You don’t have a job.
- You don’t earn enough, especially if you’re borrowing a huge amount of money.
- You are not yet regularized in your company.
- Your years of stay in the company isn’t sufficient.
- You always switch from one job to another.
- You have a bad credit history.
- Your company has issues on financial stability.
- Your company has credit issues.
- You have issues on character stability (example: your length of stay in your house) or bad records when it comes to paying bills.
- You didn’t pass all the loan documents required by the bank.
- You submitted wrong or illegitimate documents to the bank.
- You have a high risk (example: media) or hazardous job (example: chemical factory worker).
- You don’t have a property such as a car or house that can serve as collateral.
- You don’t have a credit card, which will reveal your credit exposure.
Aside from these reasons, you should take initiative in following up the status of your loan application. Don’t rely on agents to take care of these and promptly provide all the requirements needed by your bank. Keep in mind that you’re the one who needs something from the bank and not vice versa.
The reasons cited above could also be the same reasons why your credit card application doesn’t get approved.