We usually apply for personal lainaa heti during a financial emergency. Be it a wedding in the family, renovation of the house, educational expenses or simply taking your family on a much-needed vacation. While we anticipate the loan with enthusiasm, having your loan denied is one of the worst things that can happen to you. A bank or a financial institution looks into various factors while granting a loan. While you may meet most of the criteria, there could be just one or two problems with your profile and that is enough for your loan to get declined. Let us look at a few of these factors.
One common mistake everyone makes is applying for a loan through various lenders. Although we feel this will increase our chances of getting the loan and expedite the process. The thing that we do not realize is the more the number of applications, the more the number of inquiries against our credit score. In addition, when a lender sees multiple inquiries against your credit report, they will consider you broke and high risk. It is thus advisable to apply for a personal with one lender at a time, in case you have the loan denied you can always ask them the reason and rectify the problem before applying for a loan with another lender.
One of the main reasons we apply for a personal loan is shortage of income. However, lenders would be hesitant to pay you if they feel you would not be able to repay them. This vicious circle is difficult to solve. You can consult your lender and talk to them about the possible amount you could avail of with your current income. This will help you take care of your needs within your capability.