Some Reasons For Loan Application Rejection

Some Reasons For Loan Application Rejection

This article on some reasons for loan application rejection enables us to know why we are been denied a loan when we apply for one. Sometimes, we may have some needs to cover up and we need money to do so.

  At this juncture, we might be out of cash and not even have anyone to give us money. It might be money for rent or for business but we don’t have it. The next option is to collect loans either from banks or loan apps but we find out that in the process of applying for these loans, we are been denied or rejected of the loan. Listed below are some of the reasons why our loan applications are rejected.

Some reasons for loan application rejection are as follows

1. Subject to reviews

All loan applications are subject to review. The loan team will review the data that you have entered to know whether it is correct or not. You will be asked to grant permission to your phone’s contact, messages, location, and the rest. Even the purpose of the loan and the amount you wish to be loaned to you will undergo some review to know whether you fit into the criteria of those that they can offer a loan if not the loan application will be declined and you will be asked to try again in a couple of weeks because you do not possess the requirements they want.

2. Credit score 

Your creditworthiness determines whether you will be offered a loan or not. Late payment plays a very bad role here, if you have been offered a loan and you don’t pay it back on time, it will affect your credit record and at times, you may have not been defaulting on your subsequent loans but once you default in your last loan repayment, your loan request will be declined on your next application for a loan, so to maintain a good credit record, repay your loan on time as it will boost your credibility and open bigger loan opportunities for you. 

3.   Frequent financial transactions

How often do you carry out financial transactions on your bank account, this is another reason why loan applications are rejected. When you don’t frequently carry out transactions that are legitimate and have some money in your account before applying for anyone, your loan application will be rejected. This is because you have already granted the app permissions to your phone and your bank, and your information would be reviewed.

4.     Other loan facilities

As much as you are maintaining a good credit record with the bank or app you have loaned money from, make sure that you also maintain a good credit score with other loan facilities that you are partnering with as it will be revealed in the process of your loan application

 NOTE:  when you have another loan app installed on your phone, make sure you also have a good credit rating from them before applying for another one as it will warrant your loan application to be declined if your ratings are poor with them.  

5.  Keeping the app installed

Sometimes, the reasons why a loan request is being rejected is because the loan app is not installed on your phone or that after you applied and was rejected, you uninstalled the app, then when you want to apply again, you now reinstalled it, this would cause the loan application to be declined because you do not have the loan app installed on your phone for a long time. 

CONCLUSION

Knowing the reasons for loan application rejection will be helpful to you when applying for loans from the loan app in other not to be declined. Read through to know what you should do and not for your loan application not to be declined. 

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