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Follow on Google News | Declined for a bank loan? The top 5 reasons why the bank refused your loan applicationBanks give out little or no information about their application criteria and decision process, but it is likely to change soon in the UK as the new governing body choose to put new guidelines in place regarding credit applications.
By: Solve my Bad Credit Laura F Wolf At this moment you can feel that you are left in the dark, after getting declined for a credit, an although you think you had a comprehensible credit rating, or no credit problems, they can be still turn back and say no without giving you the exact reasons. Still there are ways to discover the answers, and I am going to list the most comprehensible reasons why banks decline credit applications. 1. If you are using the given bank, they do tend to assess your existing relationship with them, how many accounts you have and how you are running them. If you are applying for a bank loan, the bank has the effective to search all your existing credit, over limit charges, defaults, complaints, disputes, and cash transactions. If you have done anything that points out that you are desperate for money or submitted more than one credit applications in a few months they might easily refuse the credit. 2. The main source of contents when banks are assessing your loan application is the Credit Refrence esource Agencies. They are collecting and feeding back every single credit, but it is never only the credit you think of but any accounts that you are paying monthly on. For example utility companies, mobile phone contract providers, car insurance firms, close to all provide data about you and that content appears on your credit report. If you were maintaining your loans and credit files fine, but missed a payment with these companies you can be declined for a loan. 3. Lack of credit is one of the most common reasons why you can get declined a loan. If the bank has limited or no experience with you handling credit, they choose to not to trust you enough to consider you for a loan. For example if you only have a £200 overdraft you are using or have a credit card that you never used, they have no idea how you would be maintaining a £10.000 loan. 4. Moving home, jobs or change of circumstances. If you own your house and lived at your current address for a number of years, you more likely to be accepted for credit than another person who is renting and has moved 3-5 times in a short period of time. If you change jobs often or move to another part of the country you are likely to get the credit application refused. It is tremendously important to be traceable and register on the Voters' Role once you moved. 5. Affordability. Your credit history can be great, you might have plenty of credit accounts that you are paying for well, however when banks choose to decline your application for a loan: they will assume the amount of credit you have is just enough and have no disposable income. They could decline your loan application based on this assessment alone. So if you do currently have credit, you have to refinance it as well as submitting an application for new credit, so they will see your credit going down and more disposable income. It is very important that you do evaluate your credit situation and face how UK credit reports work. You can download my free report on UK credit files on my site and start to determine how likely you are to be accepted for credit. http://www.solvemybadcredit.co.uk/ # # # I have seen many people struggle with bad credit in the UK recently. We have to find a solution for eliminating debt and starting a new, debt-free life. End
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