Why the bank can refuse a loan

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

It is possible to remain without a loan due to too high income or lack of a landline phone in the office.

1. Bad credit history

When you apply for a loan, banks send a request to the credit bureaus. These institutions accumulate information about your financial discipline. They collect data not only on loan delinquencies, but also on arrears in fines, alimony, housing and communal services.

If you have established yourself as an unscrupulous payer, the bank will not want to contact you.

What to do

The life hacker has already written how to check and fix your credit history. But the most important task in this matter is maintaining financial discipline. Pay on obligations on time, and this will allow you to receive loans without hindrance and avoid meeting with collectors.

2. Lack of credit history

There may be no credit history for several reasons:

• the client has never taken out a loan;
• the bank provided him with a loan, but for a long time, and history has been reset, since the data is stored in the bureau for 10 years;
• the person applied for a loan before July 1, 2014 and refused to transfer data to the credit bureau, earlier this could be done.

Lack of credit history is an alarming fact for a bank manager, since your payment discipline is simply impossible to assess. So this could be a reason for refusing a loan.

What to do

Rely on chance, since for some banks this will not be an obstacle, or quickly form a positive credit history. To do this, you can:

• get a credit card and use it in good faith for several months;
• take the goods on credit and repay the loan exactly in accordance with the payment schedule.

Another option is a microloan, but due to the rather high interest rates on such loans, calculate the overpayment in advance and weigh all the pros and cons.

3. Low solvency

When issuing a loan, banks are guided by the amount of a monthly payment of about 40% of your income. Otherwise, there is a great risk that the load will become exorbitant, and you simply will not return the money.

What to do

Try changing the loan term to reduce your monthly payment. When it becomes acceptable, the bank will agree to issue the money.

4. Age

Some banks set age limits for borrowers. For example, Sberbank issues cash loans to customers aged 18 to 75, Alfa-Bank - from 21 years.

What to do

If you do not fit into the age range, you will have to look for another bank where there are none.

5. Inaccurate information

Even if you just confused something, the bank will regard false information in the questionnaire as an attempt to deceive. It is easier for managers not to arrange a loan for you than to admit potential fraud.

What to do

Take the filling out of the loan documents seriously and check all the data.

6. Blacklist

This is not regulated by laws, but the bank has the right to draw up a confidential list of unwanted customers. You don't have to queue up a scandal or write angry letters to the head of the board to get there. Excessive zeal for early repayment of the loan will also not be beneficial, since the credit institution simply does not have time to earn money from you.

What to do

The bank is unlikely to share with you the criteria for compiling a blacklist. But at least try not to make a row in the offices, so as not to fall into this list.

7. Suspicious appearance

The bank is not obliged to explain the reasons for refusing to issue a loan, so subjective factors play a role during approval, for example, the impression you make on the manager.

Red eyes, wrinkled shirt combined with the scent of fumes will raise questions. However, being too sleek can also be suspicious, as it gives the impression that you tried too hard to please.

What to do

Try to look decent, watch your gestures. Treat a meeting with a manager like a negotiation or interview.

8. Current loans

Bank staff will see that you already have financial obligations to other institutions. This does not at all make you a more conscientious borrower: excess debts increase the chances that you will not pay off any of them.

What to do

Pay off previous loans first. This is useful not only for the bank, but also for you, since a thoughtless buildup of debts can end in bankruptcy.

9. Insufficient work experience

Banks prescribe in the requirements for the borrower the period during which you need to work at your last job. Usually it is 4-6 months to cover the trial period.

What to do

Wait a few months or contact another bank. And remember that forgery of documents, including a work book, is a crime.

10. Offenses

Convictions, delinquencies and even administrative fines can be grounds for refusal.

What to do

If you have a time machine that will help you avoid committing crimes in the past, use it. Otherwise, you will have to go to different banks until you find one where the loan will not be denied.

11. Suspicious place of work

In the questionnaire, you need to indicate the company's landline phone number. If it is not there, it will look doubtful, as it will raise the suspicion that the company does not have an office.

Working for an individual entrepreneur will play against you, since it is quite simple to close an individual entrepreneur. Also, security personnel will check the reputation of the company and its financial condition.

What to do

Perhaps there is something wrong with your place of work, and it is worth changing it. If the salary in the new place is higher, then the loan will not be needed.

12. Bank scoring

The banking system gives you points according to the entered criteria. Age, gender, presence of children and an apartment, seniority, recent divorce and relocation - everything matters.

What to do

The scoring criteria are often known to one bank, so just wait for a response. After all, if a lending institution prefers young (but not too much) women with full-time jobs but no children, a freelance father with many children will still not be able to accommodate these requirements.

13. Suspicion of evading military service

A man of military age can be found at any time by a military enlistment office. And within a year, he probably simply will not be able to repay the loan. And banks don't like to take risks.

What to do

If you have any deferred documents, be sure to bring them to your meeting with your loan manager.

14. Too high income

A person who borrows a vacuum cleaner for 10 thousand with a salary of 150 thousand rubles looks suspicious not only for bank employees.

What to do

Prepare a very convincing explanation of why you need a loan, because it's really not obvious.

15. Cancellation of insurance

According to the Law "On Consumer Credit", they have no right to impose insurance on you. But in case of refusal from it, the bank may not issue a loan without explaining the reasons.

What to do

Lifehacker wrote in detail what to do in this case. And if you are determined to take a loan from a bank that imposes insurance on you, most likely, you will have to refuse it after receiving a loan - this is allowed by law.