Denied Loan application even with good credit bureau
You do not always get a loan, although the credit bureau would allow it. For in addition to a good credit bureau must also fit various other aspects, so that the bank or the Twinker can grant a loan. Many consumers are therefore disappointed when they receive a credit rejection, even though they were sure that everything would have to go smoothly because of their positive credit bureau. What a credit rejection can be despite good credit bureau and how this can be avoided, we would like to explain here.
A big sticking point in getting a loan has always been income. Not only does it have to come from a permanent position that has existed for at least half a year, but it also has to be so high that all expenses can be covered. On top of that, it must be above the exemption amount, which is a big problem for many consumers. Because this can – depending on maintenance obligations – be set quite high.
Many consumers do not reach this limit therefore, which moves the banks to a loan rejection despite good credit bureau. And rightly so. Because under this exemption exemption amount, the bank and the savings bank may make no seizures. Should the borrower come into the situation that he can not repay the loan, the bank would have little opportunity to sue the outstanding amounts. Because from the income ago only the amount should be seized, which is above the free allowance. If there is no amount that exceeds the magic limit, there is no garnishment. And everyone knows that seizures that take place in the borrower’s household usually end in failure. For there are seldom any items that can do justice to a garnishment or could be seized by law.
Too many issues
Another reason for a credit rejection despite good credit bureau are the expenditures, which the credit interested already has. If there are already several credit obligations and installment payment agreements, the bank can also reject the loan. The same applies if there are generally too many issues that leave too small an amount, which is at your disposal and can be used for the loan.
Especially with larger loan amounts, the banks are looking very closely and double and triple all revenue and expenditure. If something does not fit together here, a credit rejection takes place despite good credit bureau.
How can the credit rejection be avoided?
Of course, there is no secret recipe to avoid credit rejections in general. But as a borrower one can do something to ensure that the credit can be put into action despite unfavorable conditions.
So a guarantor can do wonders. In addition, a residual debt insurance or term life insurance can bring a lot of security in the credit. Depending on the type of loan and the term. And anyone who may also name material assets such as real estate, has little to worry about that his credit is rejected despite a good credit bureau. After all, if sufficient collateral is available, the bank or the Twinker can overlook the weaknesses in its credit rating.