Each loan is tied to certain conditions that have to be fulfilled if the application is to be successful. However, it is not always easy to meet these requirements, which is why many loans are being turned down today. The most important role always plays the creditworthiness of the applicant, ie his creditworthiness. Here are some of the most common reasons for rejecting a loan and how to possibly get a loan.
1st place among the reasons: The negative credit bureau entry
A credit bureau entry arises whenever a loan is taken. Banks check the credit bureau information to determine whether this is the case with an applicant and decide whether the customer can bear the obligations arising from another loan.
Often, however, the credit bureau entry is one of the most common reasons for the rejection of credit, since the income is not enough to handle a second capital service. credit bureau entries can also arise or remain if loans have been repaid too late, but are now considered to be done. Such entries can be a burden on the borrower for several years after the loan is repaid, as banks conclude that it is poorly paid.
But what to do if a loan was rejected because of a negative credit bureau entry? Here the market offers further alternatives away from the own house bank. For example, over the years, Swiss credit has been able to prove its worth, but because of its limited and completely rigid conditions, it can only be used as a small or secondary loan. However, there is neither a credit bureauabfrage nor a credit bureau entry, which could endanger the project. Important is only a regular income in sufficient amount to afford the debt service.
2nd place: too little or irregular income
Also the income plays a very large role in the allocation of credits and is one of the most common reasons of the credit rejection. After all, several restrictions are tied to your income, which must be met. The sufficient amount is understandably explained by the fact that the regular interest and principal payments must be made in accordance with the contract. Hence the second condition, the regularity of income. Applicants with a permanent employment status are on the safe side here. Because the bank can also draw conclusions about the future income with the proof of payroll, with which the loan should ultimately be repaid.
Although past incomes are also taken into account, they are not so high a priority at the bank, which makes the situation more difficult, especially for the self-employed and freelancers. These often require other collateral to obtain credit from the bank or other credit institutions.
It is therefore only justified to add the professional status as one of the reasons for rejection of credit, even if the income or the credit rating should not even be so bad. Personal loans could still help these and other persons, provided that the low income is not accompanied by a credit bureau entry. If this is the case, it would be better to refrain from borrowing until the credit rating has improved.
3rd place: The age
Yes, even the age is often one of the reasons for the credit rejection. When the claimant is in his prime, banks are often cross-cutting when it comes to applying for a loan. They simply fear a premature death of the borrower and thus a loan default.
Older borrowers are therefore often forced to involve third parties in the contract, ie to find a guarantor or co-applicant, usually from their own family, which offers the bank additional collateral. It is noteworthy that age can still be one of the reasons for rejecting a loan if there is sufficient income and there is no credit bureau entry.