Business and Finance
Why is your loan refused?
You need a loan for a new car, to start your business, or to fix your leaky roof, but the bank rejects it: you, therefore, have to deal with a refused credit. Peachy loans login Money is the sinews of war, you are of course unhappy and ready to fight with your banker. Before pulling out your stick, it is necessary to understand the reasons for a refusal in order to be able to bounce back and come out on top of a new request.
Banks can be very reluctant to grant a loan and therefore easily refuse a loan: this represents a risk for them as well as for you. Banks tend to want to avoid the over-indebtedness of individuals as well as the non-repayment of borrowed amounts. Understandably, could you lend someone money knowing full well they couldn't give it back to you?
1. You are on the blacklist
Unfortunately you are registered with the CCP file. This center must be consulted by lenders before granting new credit. Indeed, from the signing of a consumer credit contract or a mortgage contract, the lender is obliged by law to communicate the identity of the borrower as well as the characteristics of the contract. If the borrower faces repayment difficulties, the lender will have to blacklist him under certain conditions. Indeed, any delay in repayment, or non-payment of a debt more than 3 months after its due date must be reported by the lender to the National Bank.
You can also have a loan refused because you are stuck on a second blacklist. This list is called unregulated registrations. This list is distinct from the CCP file, in that it only records data on defaults on credit contracts and litigation commitments that are not included by the CCP. These must be concluded for private or professional purposes by natural persons. The data are only communicated in the event of a payment default of more than 3 months.
2. You don't have the right profile
If you are under 25 and you are unemployed, without a guarantor, without assets and overdraft 11 months out of 12 months, you will surely see your credit refused: banks do not appreciate unstable profiles.
3. Your budget is not suited ed
The banker must check your profile and especially the management of your budget. In particular, it examines whether the level of debt is too high for what you have left to live on. Before giving you a certain amount, the banker will check your spending and see if you have enough money left to live and pay off your loan at the same time. Therefore, the amount requested is very important. Indeed, it may be excessive given your insufficient or irregular income.
The bank that has not been enthusiastic about your profile is also not enthusiastic about your guarantor or your co-borrower. Indeed, if they have the same profile as you, it is not surprising that your request is refused. Peachy loans review Now that you have the main reasons for a denied credit, let's take a look at the solutions that will allow you to put the odds in your favor on your next application.
4. What to do if you are banned from banking
There is little to do other than allow time for time. Indeed, as soon as your old loan is regularized, that is to say as soon as the sums due have been paid, you will have to wait a year. This is the length of time your name is removed from the CCP's blacklist. After this period, you will therefore be able to apply for a loan without the lenders finding you on the blacklist. However, if you do not pay off your debts, you will be stuck for up to 10 years and it will be difficult for you to apply for credit during this period.
Go see another banking group
Indeed, each banking establishment has its criteria. Moreover, these are not the same depending on the loan you are applying for. In addition, there are the different policies of the bank as well as the context. If you are refused by bank X, you may very well be accepted by bank Y. Therefore, do not hesitate to look elsewhere. Our loan comparison tool can help you do that.
Offer guarantees
If you think that you do not inspire confidence in your banker, do not hesitate to call for sureties. They must be much more reliable than you and have a stable profile. Indeed, it is necessary that they have a job, a stable salary as well as a sufficient capacity to repay. They must therefore not have had problems with the banks. These guarantees or sureties can for example be your parents, your grandparents or your rich friends.
Be prepared to reduce your demand
If a sum seems too difficult to obtain, do not hesitate to reduce your request. Indeed, Peachy loans manchester if the bank refuses an amount that it considers excessive, in particular, because of your limited ability to repay, you can present it with a new, more reasonable amount. You will then put all the odds in your favor again.
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