Why was your loan application rejected?

There are many reasons for why a request for payday pay was rejected. Very often, loan companies do not give reasons why such a decision. In such a situation, the client may apply for financial support in another company.

However, it is worth finding out what are the most common reasons for rejecting loan applications to avoid a similar situation in the future. You’ll find the answer below.

The most common reasons for rejecting a loan or payday loan application

The most common reasons for rejecting a loan or payday loan application

The loan market helps in a difficult financial situation that anyone can find themselves in. Products offered thereon, although they are easily available, the applicant has to meet a number of conditions for the chosen one to be awarded to him. Otherwise, the dreams of payday pay may come up like a soap bubble. Here are the top 10 reasons why an online loan is not granted. Before submitting a payday application, check to see if any of them apply to you.

Low creditworthiness

Some people think that credit history doesn’t matter when trying to get a loan. Contrary to popular belief, this is the most common reason for rejecting loan applications. Often, the creditworthiness of applicants is less or not at all. Some loan companies check the registers of debtors to see if the applicant for a loan is listed in them.

If in the past you had problems repaying your liabilities regularly, then you are definitely there. As a consequence, the lender will not consider you a trustworthy customer and your efforts to pay for payday loans will fail.

Figuring in the BIK, BIG, ERIF, KRD debtors database

The answer to the question regarding the customer’s creditworthiness is found in the databases of debtors such as the National Information Bureau (BIK), the National Register of Debtors (KRD) or the Economic Information Bureau (BIG). It is enough not to pay the utility or internet bills several times in order to reach the register. For those who appear on the list of debtors, the chances of getting a loan drastically decrease.

Too young age

Not everyone is also aware that most non-bank companies generally grant loans to persons over 21 years of age. On one hand you can count those that decide to positively consider the loan application submitted by an 18-year-old. Although we obtain legal capacity after coming of age, we still do not have creditworthiness, which is also taken into account when taking a loan. Some companies also do not provide financial support to the elderly.

No repayment of existing obligations

Debtor databases are a real treasury of knowledge for lenders. It is in them that you can find information that the customer already has many other loans and for unknown reasons does not repay them. For this reason, non-bank companies refuse to grant a loan – at least at the moment. The customer can apply for payday pay only when he repays his obligations.

No income or work required

This is another important element that has a direct impact on the result of the customer’s assessment. Already during registration, the applicant for a loan is asked to declare income. The information provided in the form is verified at the client’s employer, therefore in case of forgery, the loan is not granted. Although there are no loans on the market, they are rare.

Debt collection and bailiffs

Indebted persons whose bailiff has seized the account have practically no chance of getting a loan. They can apply for it only when the debt collection processes are completed and they are still not sure that financial support will be granted to them. The most common reason for refusing to grant payday bailiffs is the lack of repayment of maintenance or other obligations that must be met, for example, in the court’s assessment.

Providing incorrect data when filling out the registration form

It happens that the person applying for a loan accidentally enters incorrect personal data in the form, which means that the lender will have a problem in its identification or correct data verification. Unfortunately, if you provide false information, whether intentionally or not, we often lose the opportunity to apply for a loan from a given lender in the future.

No permanent registered address

Loan companies also take into account whether the customer has a permanent address of residence or residence. If a person cannot indicate their home address, they will most likely not receive the loan because the lender will not be able to physically contact him by post, which can be a problem if he claims his debt.

No verification transfer

Some non-banking companies require the client to confirm his identity. A common solution in this area is the so-called verification transfer. This transfer should be made from a personal account of which you are the only owner. In the event of a transfer from company accounts or with a spouse, the transfer will not be taken into account. Unfortunately, if someone does not meet this condition or forgot to make a transfer at all, he must take into account that his request for payday pay will be rejected.

Failure to meet formal requirements

Before submitting the loan application and the whole machine starts, it is also worth checking whether we meet the requirements that the lender places before the applicant. Even the age restrictions mentioned above may stand in our way. Formal requirements can be found e.g. on the website of the loan company whose services we want to use. Failure to meet them may be the reason for rejecting our application, so it is good to find out in advance.

What to do after rejecting a loan or payday loan application

What to do after rejecting a loan or payday loan application

Lenders rarely reveal why they have rejected their loan application. Usually, however, it is enough to trace the above reasons to find out what could be the reason for the refusal in our case. What to do after rejecting the application? First of all, don’t be discouraged. Even if one company refuses to grant a loan, another’s online payday loan may be within reach.

Remember to read your loan application at least three times before sending it. This way you will make sure that it has been filled out correctly. Also check that you meet the formal requirements. If not, do everything in your power to meet the lender’s requirements – change your job, obtain a registered address or pay your obligations. Thanks to this, your chances of getting a loan will definitely increase.