After applying for a loan you may find that your loan is not approved. You may feel dejected but you need to know the Reasons Why Your Loan Application Gets Rejected. Before any bank or any other financial institution approves any loan they check various thinks about you and your financial status. When they find anything negative they may reject your loan application.
For your quick understanding here are some Reasons Why Your Loan Application Gets Rejected.
Negative track record
First thing that will be checked is your previous track record about payment of loans. If you have not paid your credit cards on time or have delayed in paying previous loan installments it will be considered negative. They may find that you are not a right person who will repay back the loan on time, thus the loan application gets rejected.
Size of your income
While approving any loan the authorities also considers your income and your repaying capability. You may have good income but still you found that your loan is not approved. This is because you may already have enough loan repayments. It may seem that your repaying capacity is not good enough and you may not be able to pay the present loan at the right time. They want to secure the repayment of the loan and when they find that there is some problem in it they will not approve the loan.
Security of your income
Next thing that nay lender will check is the security of your income. You may have enough income but your source of income is not secured. Today you are getting handsome salary but this is not steady. If you have hopped jobs a lot of time or your employer do not have good credibility then there are high chances that your loan application will not be approved.
Issues with credit rating
Credit rating is most important while any loan is being approved. If you do not have good credit rating then you can forget about loan approval. Sometimes even with good credit rating the loan is not approved because they find that there are some other problems. May be there is co-applicant with you and the credit score of the co-applicant is not good enough. Your loan application will be rejected for this.
Thus, while you make applications for loan it is important that you take good care of all the features and then apply. This will ensure that your loan application is not cancelled.