There are times that, for no apparent reason, our lifelong bank denies us a loan application. Despite having stable income and lack of debt. Which ends up confusing a lot of customers. For this reason, from Particular Credit we want to explain what are the main reasons why a bank can deny you a loan. In this way you can leave doubts if it happens again.
Remember, however, that today you have access to different credit companies that can offer you much more attractive loans with interesting conditions. For example, private equity companies such as PrivaCredit.
Reasons why a bank can deny you a loan
Since the financial crisis broke out in 2008, banks have been increasingly tightening the requirements to offer financing to customers. Both individuals and companies. To such an extent that the situation has become so complex that even the ECB has had to take action on the matter to get liquidity back.
However, the requirements of the banks are still very high and sometimes they offer unattractive conditions for customers. Among the main reasons why they can deny you a loan are the following:
Our financial situation
The first point a bank will study to know if you are a suitable customer is your financial situation. If you do not pass a detailed analysis that demonstrates your solvency, these credit institutions will not lend you money. Therefore it is necessary that:
- Have a secure and stable source of income every month.
- Your level of indebtedness is not very high. If your level of indebtedness per month accounts for 40% of your net income, they will not grant you a loan. Unless you offer a guarantee or guarantee to be able to face the payments in case of having several loans already granted, the safest thing is that they do not offer you another.
- Check delinquent files. Another of the methods used to check the financial situation of a potential client is to review the delinquency files that operate in Spain. The most common are Financial Credit Institutions. It is also frequent to review CIRBE. If you want to know what CIRBE is and what it is for a loan, do not forget to read the following post.
Check our bank history
The bank is not only interested in our financial situation but also in our banking history. For this reason, the person responsible for granting the loan will review your financial situation with a thousand eyes. It will also show special interest in the relationship you have had so far with that entity. That is to say:
- The products you have contracted.
- The level of bonding you have come to accept with them.
- If you have made the payments of other loans already granted without delays.
- What is your financial solvency.
As a general rule, bank statements are an infallible method of knowing what the client’s financial health is and how he responds to payments. In addition to knowing your income and expenses. If you are trying to contract this product with another bank, it is normal to ask for a bank statement for the last three months. In the bank statement the bank will be able to see:
- Your income level, including extraordinary income in addition to payroll.
- Your level of expenses.
- If you find yourself in red numbers. If so, you will be denied credit directly.
Check our fiscal situation
Finally, another aspect that will calmly review is our fiscal situation. That is, find out if we are up to date with payments with the Treasury. Through the declaration of income, the bank will know your borrowing capacity.