Let's talk. You might choose to apply for a loan when you need cash. But the question is, if your loan application is rejected, will it affect your credit position? The answer depends on the type of loan provider you're looking for。
The loan was denied

One is a loan provider that does not have access to the credit system. When they get a loan application, they won't check your credit report. So whether your loan application is rejected or not, it will leave no trace in your credit records. This sounds attractive, but you must be very careful, because such loans are usually not strictly regulated and their compliance is questionable. If you are not careful to fall into the trap of a hedge, even if you cannot borrow successfully, your personal information may be leaked and you may suffer economic loss。

The other is a loan provider with access to the credit system. These are usually banks and licensed financial institutions. In the case of such institutions, every time they receive a loan application, they check your credit records and leave a record of approval. So even if your loan application is denied, your application can leave a mark on your credit record。

Speaking of which, you might wonder why the loan that I applied for was denied. Some possible reasons include:

Guarantees were given to others. The risk is very high, especially when you guarantee joint and several liability. Because this part of the guarantee will be regarded as your hidden liability。

2. HIGH INDIVIDUAL DEBT RATIO. IF YOU HAVE ALREADY MADE A LOAN AND THE LOAN HAS NOT BEEN REPAID, YOU WILL INCREASE YOUR DEBT RATIO. THIS LARGELY REFLECTS YOUR ABILITY TO REPAY. IF YOUR DEBT RATIO IS 501 TP3T OF TOTAL INCOME, THIS MEANS THAT YOUR LOAN RISK IS HIGH, WHICH COULD RESULT IN YOUR APPLICATION BEING REJECTED。