It may happen that a loan application is rejected by a bank or a finance company. We must understand that these are things that happen and that there is no need to fall. The important thing to do is to understand the reasons for the refusal because the solution is probably at hand. If our request has been refused, we must raise our sleeves and come up with a better strategy. We need to understand what are the reasons that pushed the banking system to deny and work on the critical issues.
In principle, a negative outcome occurs for reasons that basically fall into three categories.
Case 1: Poor financial reliability
Do we have a fixed-term contract? Have we never requested funding before? We are young? We have no property? If the answer to at least two of these questions is positive, the reason for the “no” of the budget to our request is precisely the poor financial reliability. The bank does not have sufficient elements to establish that we are reliable and therefore does not assume the risk of disbursing what is requested. A fixed-term job, on the other hand, offers little guarantees. Not having a financial history makes us completely unknown to the credit system. A child under the age of 30 will not play in our favor.
How to do?
In these cases sometimes it takes very little. In the presence of a refusal it will be necessary to wait one month from the same. We always remember that the rejected file was registered in Crif and will remain there for 30 days. By submitting a new request, Case 2 below would occur and therefore, a further new denial.
After a month we will re-submit a new question but this time we will choose to be supported by a guarantor. Better if a relative, perhaps with a good financial history.
Case 2: Requests or negativity in Crif
Crif collects information on our financial history. All loans granted, with relative amounts and number of installments paid and to be paid, installments paid late and unpaid. All requests made to banks and financial institutions; both those who had no follow-up and those who were granted and rejected.
If there are any of our data in Crif, let us make sure of their nature. It would be appropriate to request a Crif inspection and we remind you that any negative report may be the cause of a rejected loan.
Often a request is thrown away even in the presence of another rejected request, and this happens automatically. In the jargon it is said that the practice is rejected by the system.
How to do?
If ours is a bad reputation in Crif, then we should solve the problem at the base, restoring our pending positions. If instead it is simply a request refused then it will be enough to wait 30 days. After a month the data will no longer be visible in Crif.
Case 3: Too many commitments
A very frequent reason for a practice’s negative outcome is too many commitments. The customer is too exposed to face a new commitment and pay a new installment. In a nutshell the applicant is already too busy every month
How to do?
In the presence of a refusal it will be necessary to wait one month from the same. We always remember that the rejected file was registered in Crif and will remain there for 30 days. By submitting a new request, the aforementioned Case 2 would occur and therefore, a further new denial.
Once a month has passed, we will re-submit the request, but request the consolidation of the outstanding debts with the addition of new liquidity. In general the institutes look favorably on consolidation and opt for a rate slightly higher or equal to that already incurred monthly for current debts, extending the duration of the commitment. In this way, the customer has a double advantage: a single installment and new liquidity.
This means having relations with a single financial company, which will close the residues with the other banks. The customer will have to pay a single installment without having to remember a lot of deadlines.