If you've applied to a loan institution and then you've been rejected, you might wonder, what's going on? In fact, there are a lot of people who suffer, especially those who are in need of working capital or microcredit. In fact, there are many common reasons for rejection of loan applications。

What's the main reason for the rejection

First, poor personal credit status is often the primary cause of rejection. For example, in your letter-writing reports, there are poor records of overdue, bad debts, non-payment or various types of living expenses, tax evasion and tax evasion, or a clear lack of credit, the lending institution chooses to reject your loan application for fear of excessive credit risk。

Second, incomplete information is also one of the common reasons for the rejection of loans. If you do not provide sufficiently detailed information in the course of applying for a loan, the loan institution will not be in a position to fully assess your comprehensive qualifications, which may also result in your application being rejected。

MOREOVER, IF YOU HAVE A HIGH LIABILITY RATE ON THE LETTER REPORT, THE LENDING INSTITUTION MAY ALSO REJECT YOUR LOAN APPLICATION. IN MOST CASES, THE ACCEPTANCE OF THE CREDIT INSTITUTION'S CREDIT LIABILITY RATE IS GENERALLY 50%, AND IF YOUR DEBT RATIO EXCEEDS THIS CRITERION, THE LOAN INSTITUTION MAY CONSIDER THAT YOU ARE NO LONGER ABLE TO AFFORD MORE DEBT AND THAT THERE IS AN EXCESSIVE RISK OF DELAY, AND IT DECIDES TO REJECT YOUR LOAN APPLICATION。

In addition, frequent applications may raise doubts among lending institutions. If you apply for a loan more often or do credit cards more frequently, the institution may reject your application as a negative signal, fearing that your funds will be strained or that your loan motives will be impure. It is recommended that you evaluate and submit applications for loans in accordance with your actual needs, and that you control the frequency of applications on a monthly basis, for example, by not more than three applications per month and not more than eight applications within six months。

The good news is that there are many ways to improve the success rate of loan applications. In the first place, you can deposit a certain amount in the loan bank you want, so that the bank may, in reviewing your loan application, ease some of its conditions accordingly and increase your chances of passing. Second, you can provide more proof of assets, such as real estate certificates, certificates of deposit, bonds, etc., to increase bank confidence in your solvency. In addition, if you have a well-known friend with a certain economic base, you can ask them to act as your guarantor, so that the bank will usually be more willing to extend the loan to you. At the same time, if you apply for mortgages that have been rejected by the bank, you may consider adding collateral, such as more assets as collateral, which would increase the bank's security and thus increase the probability of your application being approved. Finally, if you have a overdue situation in your personal correspondence, but the delay is not intentional, you can help the bank by providing proof of non-adversity。