Dear borrower, you have certainly come across this entry because you have been refused a loan by the bank. Applying for a cash loan, consolidation loan , credit card or other credit products does not always end well. What to do when we are refused a loan in a bank? Will you go to the next one and try again?
The most important is to understand the reason for refusal. Only knowing why the bank refused to grant us credit can we deal with the problem. Many of the most common problems borrowers have already been described on our blog, however we will try to include in the form of a supplement the most important reasons for refusals.
It is important that in the case of a customer the reason for refusal is one, up to three of the following. If, as a customer, you identify with most of the problems listed above, you will need to solve them somehow and then apply for a bank loan. How to do it, ask a proven adviser or credit broker. Problems are not forever. You can easily limit or delete them.
Lack of creditworthiness
There can be various reasons for the lack of creditworthiness. It all depends on the bank in which we apply and its system converting the same creditworthiness with customers. The refusal to grant a loan by one bank does not block our way to a loan from a credit advisor.
If the total installment of our loans, together with the charges arising from credit cards, renewable loans do not exceed on average 55% of our income by definition, we can apply for a consolidation loan. In the case of cash, our installment after obtaining the loan can amount to a maximum of 55% of the income.
The value has been averaged, one bank has a ratio of 50% and the other 65%. A professional credit broker will help direct the client to the bank that best calculates the creditworthiness in his situation. The refusal to grant a loan will not happen again if the adviser calculates everything carefully.
Bank loan refusal due to lack of creditworthiness, what to do?
The easiest way: to lead to a situation when, the ability appears. How to do it?
Certainly, a good solution is to restructure your loans. Getting along with the banks will spread the loan over a longer period , thanks to which our monthly installment will be lower. After such a process as reduction of installments, there is already capacity and we can choose cash or carry out the process of loan consolidation.
Another solution is to find an additional source of income. The 3 months worked will allow us to show reliable income and increase our credit standing.
A very good idea to improve your ability is to take out a loan with another person. It can be a spouse, parent or even a friend. The income of the other person, added to ours, will significantly increase our credit possibilities.
Low scoring (BIK score)
Each bank calculates its scoring in a different way. She uses other algorithms to do this, various factors affect her. The scoring shown in the Credit Information Bureau is based on our credit data. Customer credit history, inquiries and loan repayments have their share in them. Banks add to this factors such as age, marital status, customer residence, speed of crediting. Each bank approaches these variables quite differently.
Such an assessment contributes to the offer we get from the bank. Not always weaker scoring customer will get a credit refusal. The bank most often offers weaker clients relatively lower amounts charged with numerous commissions. Only the weakest customers are refused. It is worth asking the bank about the reason for refusing a loan. With such knowledge, it will be much easier to match the right offer of a credit advisor.
Low points also mean the arrears on our bank and non-bank loans. A few days behind; month by month can significantly worsen our scoring. If there are arrears over 30 days in repayment of bank loans, it can mean that only quite expensive banks will be able to help us, but this is not always the case. Therefore, a bank loan refusal based on arrears does not close our path to obtaining it.
The duration of our contract
A large number of employers do not employ their employees for an indefinite period. Every year or 2 years they extend the contracts. Therefore, a fairly large percentage of customers have trouble finding a loan for longer periods. Customers approach banks not knowing their credit granting rules and not aware of their requirements.
This is a big mistake. As an intermediary cooperating with several Polish banks, we see that there is a small group of banks on the market accepting temporary contracts. A client who has been working for 3 years, with a contract for 6-8 months can easily get a loan spread over the next 10 years. A promise of employment is not even required for this (extension guarantee).
In this case, it is not always worth going to your proven bank, because we do not know how it will react to our timely contract with the employer. Banks treat customers very differently. Some of them require confirmed continuity of employment , presentation of a previous contract with the same employer. Others will expect the above mentioned promise of employment from the client.
In this situation, knowledge and knowledge of bank offers are necessary. Thanks to this, the customer can easily get a loan, even despite his not very stable employment situation.