Banks often refuse to give credit to their customers. If you want to research this problem, our article will help you. There are many reasons why a bank can refuse a client.
Why the bank refuses
One of the prerequisites is official employment. It is unlikely that a bank will trust a person who lives on seasonal earnings, because this kind of work does not guarantee a stable income. There is little chance for people with low wages, as well as those whose employer is a sole trader, such employment is considered unstable.
Biography of the client bank security service will check very carefully. If there was a criminal record, even if extinguished, it greatly reduces the chances of a positive decision. If this defamatory fact is true, the bank’s security service will go into great detail, up to the corpus delicti. Even the appearance of the potential borrower can be a reason for refusal. If a person looks unkempt, he does not inspire confidence. The reason for distrust can be even such a circumstance as no landline phone number, home or office.
Whatever the circumstances may be, credit history is the most important factor in making a decision. A variety of circumstances may be an obstacle:
- poor credit history;
- complete lack of it;
- existence of other loans.
If a person has once proven to be a bad payer in one bank, it causes mistrust towards him in other financial institutions. To be rejected, it is not necessary to have a bad reputation, sometimes it is enough to have bad debtors among relatives. More information on the website: https://apps.apple.com/us/app/cash-advance-tsaip-loan-app/id1492828465. The presence of other loans reduces the solvency of the client, and therefore does not contribute to a positive decision. But the opposite situation is not better, when the potential borrower has never had any dealings with credit institutions. In this case it is unknown, what kind of payer he will be, and many banks prefer not to take risks.
If you need a large sum of money, and you have never taken out a loan before, take out a small loan, for example, to buy a phone, which can be repaid in a short time. When you pay it back on time and in good faith, it will improve your rating in the eyes of the bank. You can also use modern apps like dave to get money fast. Such apps can be the most convenient solution for you. Modern mobile apps can help you borrow money even if you’ve already been turned down by a bank. So it makes sense to use this option when you need money urgently.