You may be one of those who could not borrow money. A rejection can be due to many things, and it is difficult to give a concrete answer as to why one is rejected as it can be a combination of different factors. In addition, it is important to emphasize that one is individually credit rated, which is also the starting point for the loan offer and the basis for approval of the loan application. But before one can relate to one’s repayment on the loan, it is also important to know what factors contribute to a loan rejection. In the following, you may learn some of the possible factors that may lead to a rejection of your loan.
The register in RKI?
Being RKI registered is the first factor that leads to impaired loan opportunities. It is very bad signal to send when the providers or the bank can see that you are registered in RKI. It is a database that collects all bad payers, and one’s name ends up in the database because, among other things, you have not paid your bills on time. When one is RKI registered, one’s chances of getting a loan refusal are much higher and the loan options are far inferior. However, there are loan providers who are willing to lend you money despite your RKI registration, but it is recommended that energy be used to get out of RKI, rather than researching the loan market to be able to borrow despite RKI registration.
If you do not have high enough income this can also be a reason for a refusal. This is simply because you do not have sufficient income, which indicates that it can be challenging to meet the monthly payments on the loan. When credit rating is made by the borrower, low income usually means a more fragile economy, which in many cases proves to be right. In principle, there is not much you can do here. If you have been rejected because loan providers do not believe that the economy is sound and reasonable, you can always try to find an extra job, or minimize expenses that are not necessary. To see if you have unnecessary expenses, you can create a budget to get a quick overview of your income and expenses. For example, it is always a good idea to look at mobile subscriptions, insurance, electricity companies, etc. to see if some of these can be adjusted down.
Large debt and age requirements
If you stand and already have a large debt because you may have bought a car, a house or something completely third, this will reduce your available amount. Having a large debt also means that you are already repaying each month, which indicates that your monthly available amount is tight and could help to make the repayment of another loan within the agreed framework. Here, the loan providers take the risk of lending you money – so a combination of income and debt will give you a rejection of a loan. For that, there is the age. You must be 18 years of age and in addition there are writing age requirements with the various loan providers who set their own age requirements for their loan offers. Here you can always research the market thoroughly to find the loan providers where you can meet the age requirement.
The factors mentioned are the basics that make you refuse a loan. So whether it is one factor or the other, it is always a good idea to relate to it. It is the best and most healthy way to a sound economy, which in the long term also improves one’s loan options.