CEBU

CarisCompany reveals common reasons for loan denials

THIS is the most common question in search engines. People want to know why they get denied of a loan. This is due to the fact that the bank should not inform the client of the reasons for the refusal of a loan. Therefore, failing, the client can only speculate. As already mentioned, the refusal to get a loan can be caused by low income. This fact can be the answer to the question of why banks do not lend money to a client with a good credit history. The amount of monthly payments should not be higher than 30 to 40 percent of the income. This percentage may vary depending on the presence of minors in care, the total amount of income relative to the subsistence minimum or other parameters determined by the bank's policy, but not particularly deviating from the general norms.

Most common reasons for loan denials

What if the income is exactly enough and the banks still refuse or refuse a loan? What to do in this case? One needs to check his credit score. It is possible that an unsecured loan is hanging on one’s name or there have been violations of previous loans.

How to check it?

Every citizen has the right to know his credit history free of charge once a year. This can be done either at a bank branch, when applying for a loan or by submitting a request to the Bureau of Credit Histories. You can submit such a request either in person or by letter. This can also be done for a fee through internet banking services. This document will contain information on all credit relationships for the past two years. If during this period there were violations, there was or still is an unsecured loan with a delay, then such a credit history can no longer be considered reliable.

However, a bad story does not always indicate a poor client discipline. There may be situations where the borrower is not related to a loan issued for him. This is possible in case of fraud by third parties. In such a situation, you will have to defend your rights in court. There are also cases when, due to the fault of a bank employee, the loan was not removed from the register as a closed one or the loan payment was sent to an erroneous account. In such cases, one needs to contact the bank and resolve this misunderstanding. Follow this link https://www.creditinfo.gov.ph/credit-bureaus to check one’s credit score.

What will not deny me of a loan?

This is also a very common question. CarisCompany answers to mostly all questions regarding this. It turns out that lending organizations that do not refuse to credit, if they exist, offer their loans on fairly tough conditions. Interest rates in such loans are designed to cover potential risks – while occupying a malicious non-payer, the lender strongly risks not to receive his funds either. Also, microfinance institutions (if the credit history is not too bad) or pawn shops can offer an alternative solution to the problem, when denied a loan in all banks.

If, trying to decide what to do when the bank refused a loan, the choice was nevertheless stopped at the microcredit organization, then it is better to cooperate with the reliable one. The policy of such a lender implies soft and fair conditions and a number of significant advantages: discounts for new customers; discount at a repeated loan; the possibility of prolonging the loan term; minimum package of documents; and gradual increase in the amount and duration of the loan. (SPONSORED CONTENT)


VIEW COMMENTS
DISCLAIMER:

SunStar website welcomes friendly debate, but comments posted on this site do not necessarily reflect the views of the SunStar management and its affiliates. SunStar reserves the right to delete, reproduce or modify comments posted here without notice. Posts that are inappropriate will automatically be deleted.


Forum rules:

Do not use obscenity. Some words have been banned. Stick to the topic. Do not veer away from the discussion. Be coherent. Do not shout or use CAPITAL LETTERS!

sunstar.com.ph