How to find out the reason for refusal of a loan by credit history

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

Let's say you were refused by the fourth bank, and you requested a credit history to find out the reasons. Our instructions will help you figure out why you are considered an unreliable borrower.

Credit histories are kept in the credit bureaus (CRB). There are 13 CRMs in Russia, and although each has its own format for displaying credit history, the differences are only external: the structure and content are the same.

Once a year, you can get a credit history from any bureau for free.

In this article, we analyze the credit report of the largest credit bureau - NBCH. Other reports can be read by analogy.

1. We look at the summary

The credit history consists of four parts. The first part is called the title. It contains a summary of your loans.

Late payments

In the "Balance" column, find the line "Overdue". The total amount of overdue loan payments is indicated here. If it is zero, it means that at the time of the check you are regularly paying on loans. Any number other than zero means delay. In this case, the new loan will be refused. You need a loan - close the delays.

Negative loans

In the "Accounts" column, look at the "Negative" line. Negative loans are loans for which the delay has exceeded three months or has reached judicial recovery. These can be active or closed loans. The more negative accounts, the less likely you are to get a loan.

To reduce the impact of negative loans, improve your credit history with small loans, but not with an MFI. Use a credit card or borrow a refrigerator, for example. This will help restore the reputation of a reliable borrower.

Pay attention to the number of loan applications:

Banks have a negative attitude to the following indicators:

• Many applications in a short period of time, for example, more than three per month. This demonstrates that you are in urgent need of money and are not very picky about choosing a lender.
• There are many times more rejected applications than approved ones. For example, you have submitted 58 loan applications, and you have approved only 8. The bank will see all previous refusals and will refuse automatically.

Do not try to get a loan impudently. They say, they do not give a loan in one bank, I will go to another, and then to a third, and so on. All refusals are displayed in the credit history and reduce the chances of loan approval.

2. We check personal data

Personal data is included in the credit history from loan applications. You filled out such applications when you were trying to get a bank loan. Personal data must be checked for accuracy and consistency.

Credibility

It happens that the surname, date of birth or address is incorrectly recorded in the credit history. Both the borrower himself could be mistaken when filling out the application, and the bank employee who transferred data from paper to a computer. For example, according to your passport you are Ivanov, and in your credit history - "Ivonov". When considering an application, the lender compares the data from the documents with the data in the credit history. If there are discrepancies, the loan will be refused.

Check your credit history for errors in personal information. If you find it, write an application to the bureau where you got your credit history. The rules for correcting credit history in the three largest bureaus are available here:

• NBKI;
• BCI "Equifax";
• United Credit Bureau.

Constancy

Personal information is updated in the credit history as it is updated in applications. And the more often this information changes, the worse. Banks value consistency. If you change your address or phone every year, banks may consider you a credit fraud and refuse a loan.

To convince the bank that you are not a swindler, come to the office and tell us about the reasons for frequent moving: you were looking for work in different regions or lived with relatives.

3. We analyze individual loans

Information on individual loans can be found in the "Accounts" section. This section is easy to find by the colored squares:

Active loans

Find active loans and look at payment schedules. Active loans are the ones that you are paying off now.

One square - one month. Green squares - everything is in order, you pay without delays. Gray squares indicate that in some months the bank did not transmit information on payments.

It is bad if among the green and gray squares there are squares of other colors. They talk about delays.

Closed loans with delays

Banks pay attention to them if there are no active delinquencies. The depth of delinquencies and the date of loan closing are important. If you closed a loan six months ago with a delay of more than three months, then the new loan will most likely be refused. Over time, the chances of getting a loan will increase.

Microloans

Check the amount of microloans. Banks do not trust borrowers, who regularly “pick up payday”. If you take a microloan once every six months, this is normal. More often it is bad.

Also keep in mind that banks are more loyal to active borrowers. If you have an exemplary credit history, but you have not used loans in the last five years, the bank may refuse. Therefore, from time to time, replenish your credit history with new data.

4. We study the reasons for refusal

After the section "Accounts" you will find the section "Information". Here you can see your loan applications and their statuses - approved or rejected. When the application is rejected, the lender indicates the reason:

There are five reasons for refusal:

1. The lender's credit policy is the most vague wording. It means that at the moment the bank does not lend to borrowers with your parameters. This can be age, education, income, registration, and so on.
2. Excessive debt burden. The bank compared your income with loan payments and saw that the level of the credit burden was exceeded. The acceptable level is when loan payments (including the planned loan) do not exceed 35% of income.
3. Borrower's credit history. The bank examined your credit history and found it insufficiently positive.
4. Inconsistency of the information about the borrower, indicated by the borrower in the application, with the information available to the lender (lender). What to do with this reason, we described above - in the section "Checking personal information".
5. Other. The lender was unable to choose one of four reasons.

According to my observations, the most common reason for refusal is the lender's credit policy. Probably because it is the most "capacious" and categorical. Alas, this reason does not provide a specific direction for analysis, so the borrower will have to go through all possible options for refusal.

Check list

If you are not given a loan, get a credit history and check:

• In the title part - the amount of delay, negative invoices, the number of approved and rejected loan applications.
• In the section with personal information - reliability and "consistency" (change of addresses and phone numbers).
• In the section "Accounts" - payment schedules and the number of microloans.
• In the "Information part" - the reasons for the refusal in the credit history.

What not to do:

• Throwing applications for loans at banks. This will ruin your credit history.
• "Fix" credit history with microloans.
• Look for specialists who will “call where they should” and will fix your credit history with lightning speed. You will run into scammers.