You are planning to buy your dream house but money is one constraint. You feel that bank loan can help you fulfill your dream with aspirations and hopes. You apply and look for the acceptance for your loan suddenly one fine day; you get a rejection letter from the bank. This shatters all your dreams.
In today’s recession economy around 80 percent of people are involved in some form of debt, bank loans, etc.
Points for Your Loan to be Rejected:
Based on your credit score:
Credit score is an important deciding factor for your loan disbursement. Credit score generally is between 300-900 points and independent up on such factors as monthly salary, past credit history, etc. if the credit ‘a risky borrower’ while a person with 900 is considered as a safe person.
Previous loan defaulter:
If you’ve been a loan defaulter in the past, you will be regarded as a risky borrower.
Borrowed against your credit card:
Your loan will be declined if you have ever borrowed against your credit card. If you are repaying back 10 percent of the entire amount, you will be regarded as a potential risk borrower.
Previous inquiries of loan:
Banks also take into consideration the fact that how many times a client has enquired about the loan earlier. So it is advisable that do not make useless enquiries about loan unless you really need to.
Keep in mind the above listed points as they will be seriously taken into account by banks while disbursing loan.