Personal loans can be lifesavers like literally. But qualifying for one and getting your application approved can be a pretty daunting experience. Most of the personal loan applications are always rejected for many different reasons.
You may have made dozens of personal loan applications but ended up having all of them rejected. You may not know the reasons as to why. But that is what this article aims to clarify today. Many lenders will always look at a number of qualifying factors and if you do not meet their minimum qualifications, they automatically reject your application requests. So, what are some of the reasons that could be costing you that personal loan? Keep reading to find out.
- A Credit Score That Is Not Impressive
If you have been skipping making your credit card bills or any other loan EMIs on time, then chances are that you have a damaged credit score. If you have defaulted on making any loan payments, then you pretty much fall in the same bracket. Your credit score will definitely plummet and you may also have negative remarks on your report. When lenders see this, they see you as a risky investment and most, not all, of them will automatically reject your application.
- Constantly Changing Employees
If you have an unstable job employment history, then lenders may also consider you as a risky investment and in turn reject your loan application. Lenders value job stability as it shows that you, the borrower, has the capacity to pay back the loan without fail.
- Lack Of Sufficient Source Of Income
Lenders can also choose to reject your loan application based on your income. So, if the monthly income you make is not enough to accommodate the loan’s monthly EMIs then your application will be rejected. Most lenders have varied minimum income requirements. Check these requirements out before making your application.
- You Already Have Too Many Loans From Lenders
If you already are knee-deep in loans, then chances of another lender approving your loan application are pretty slim. The new lenders will also want to know whether your monthly income is also sufficient enough to accommodate the new loan payments should they approve your application. Lenders will be looking into your debt to income ratio and use this to determine your loan application status.
- Using Incorrect Details Or Giving Incorrect Information
Always ensure that you double check all the details that you enter in your Northcash online loans application forms. Any discrepancies or incorrect details in your application forms or credit report will automatically lead to loan rejection.
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