You are in need of money, you have applied for credit and you have been refused. Reason enough to feel frustrated, right? However, a declined credit application can tell you a lot about your finances, and it may help you have a different answer in the future.
There are a number of reasons why a financial institution may refuse an application for credit, whether it be a loan, personal loan or a loan. Generally, we do not know why the institutions did not approve the request.
To help you understand, we’ve listed below some of the main reasons why this happens. Follow and find out what your case is!
Evaluating your credit request declined: dirty name?
The first and most obvious reason for you to have a credit claim declined is to have the name dirty. This is valid mainly for financings, real estate or automobiles, since in the case of personal loans with financials it is possible to be approved even with the name included in a credit bureau, for example, Serasa and Boa Vista.
Name cleared but outdated or incomplete data?
Your name is cleaned or you cleared it before making the request, but you still had your credit application declined. After the dirty name, one of the main reasons for this refusal is the provision of outdated or incomplete data.
It is of the utmost importance that when you submit your credit application, you provide your correct information. See if any of the information was not sent with some error. Your CPF, income information, bank account and address are some of the most important.
Never use third party data to place your order. Financial institutions have systems that evaluate the information you provide accurately and will certainly find some incongruity.
All right with the data, but what about the payment history?
Another thing evaluated by the financial institutions system is your payment history. Do not know what that is? We explain: the payment history is the record that banks have of their payment of bills over the years.
Have you left many accounts overdue and paid after the due date? The bank knows this and such a history is not beneficial to show that you are able to afford the installments of your credit application.
Pay your bills on time and you want a high loan?
A declined credit request may also occur because of the amount that was requested. It may be tempting to borrow a high loan or a financing to pay for that dream home, but will that fit in your pocket?
Financial institutions have a way of doing this analysis and will know when the value of the application is far above their conditions. In addition, it is also important that the installments of the loan or financing do not commit more than 15% of your monthly income.
Your financial profile is ok, but what about Brazil?
Lastly, there are some things about which you do not have much control. In times of recession in the economy, such as the one we are currently experiencing, it is normal for banks to restrict some services, increasing the number of credit requests declined.
But do not despair! At times like this it is still possible to get a personal loan online, with large financial marketers. This type of service still gives you the great advantage of making your request without leaving home and having the credit, when approved, in your account in much less time.