The reasons why banks refuse to give credit may be a whole lot. In addition, this list changes depending on the financial institution we target.
Bad application filled out
The first problem that may arise is not, in spite of appearances, the assessment of our creditworthiness (although the time will also come for this), but the application has been badly completed. A long credit form usually contains a lot of questions about various matters. Unfortunately, the assessment of what is important and what is less depends not on us but on the bank to which we are heading. If, after neglect, we treat answers to questions that we think are trivial, but important for the lender, let’s not be surprised if we miss our chances on good day.
Some people in this situation will probably go to a new facility. Mistake again. If we walk from the bank to the bank and leave their credit applications there, unfortunately some potential lenders may turn on a red lamp and a simple scheme: we desperately need a loan, that is, we do not have money, that is, we are insolvent. Therefore, after carefully reviewing the offers of banks (preferably online), you should choose one and file a very carefully completed application.
Who deserves credit?
When the selection and filling stage is over, the time comes to verify our creditworthiness by a bank clerk. It consists of many elements and some of the criteria also change depending on the lender. For example, various banks approach the issue of maximum installments. In some facilities it can be 50 percent of pay, in other 60 or 70 percent. The basis, however, is to have this remuneration. An ideal situation for a bank is when it is dealing with a client with an employment contract for an indefinite period, who has been employed in a given position for a long time. Additional points can be obtained by married persons. Sometimes, however, banks require that a husband or wife agree to take a loan from their partner. However, it should be stipulated that this is not tantamount to the fact that the spouse will from that time be co-debtors or their creditworthiness will decrease.
They have slightly worse employment on a fixed-term contract. However, they are not in a lost position. Some banks check our employment not forward, and back. If, therefore, we have been in a given position for five years and the contract ends in a month, in some banks we will get a loan for several years. But more often you can meet with a situation where the lender will grant a loan only for the duration of the contract. This also applies to people who work on a contract for a work or contract of mandate. A client employed on this basis will usually be refused a loan, although there are also exceptions to the rule.
The bank may also negatively approach the industry in which we work. A person employed as a driver, builder, owner of a pawnshop, and sometimes even a politician can more often be refused than, for example, an employee of the post office. The creditor assesses some occupations in terms of its risk or possible collection of receivables. The latter applies in particular to persons working abroad. It does not matter that we earn a lot in England or the Netherlands. In Poland, taking eg a mortgage on this basis can be quite a challenge. And all this because of the banks’ fear that in the case of non-payment of installments there will be a problem with debt enforcement.
In some institutions, they may also be skeptical about a self-employed person. For the lender it is a form of earning much more risky than, for example, a full-time job at the office. Applying for a loan in such a situation must very well document his earnings for the period appointed by the banking analyst. This, in turn, is associated with a lot of paperwork.
Seemingly, the group of dream candidates for obtaining a loan are pensioners. However, this is usually an obstacle here. The vast majority of banks give loans to a group aged 20 or more before the age of 70. Thirty-something girls, preferably settled, are preferred for large mortgages. Of course, as always, there are exceptions, and either an 18-year-old or a 75-year-old old man can get a loan somewhere. In this group, therefore, the greatest chance will be people with an early retirement or pensioner? In the power of age ?. However, it is different with periodic benefits. If the pension is only granted for a given period, one must take into account that the loan agreement will apply to the end of payment of the benefit.
Disqualifying in some facilities is also taking a quick time. Nothing is that paid off, it’s important that it’s taken, and that can mean that we were desperately looking for money. Similarly, taking too many credits in short time periods. Usually, this is done to satisfy the emerging financial needs. However, it can have negative consequences. Even if our creditworthiness allows you to incur another commitment, the lender may find that we are on the way to the credit spiral and then we will get a refusal. It is also worth remembering that the monthly amount of available free funds is the most important for the bank. High earnings are useless if you barely have enough for the first one.
The dreamed-for customer bank will therefore be a settled person, who has a stable and stable job, from which a lot of pay is left. On the client’s side, it is necessary to select the facility properly and complete the loan application. Those who meet with refusal can look for happiness in non-bank institutions. Contrary to appearances, sometimes you can find loan terms there, not worse than a bank loan.