There may be various reasons for a credit refusal, which may be related to both you and the lending company that issues these loans, but in this article I will try to give you the most common reasons why you could be denied this quick loan application. But before you keep track of your records, you should definitely know that creditors never give a reason why this loan was refused, and so we can only guess which of these cases applies to you, but usually the most common denials are:


Bad Credit History

Bad Credit History

Bad credit history means you have not paid for a loan in the past and have entered the database of non-payers or debtors. Your data is usually staying in this database for at least 10 years, so even if you have paid off for a long time, this bad experience will appear in the credit register and the creditor can refuse this loan. Each lender has both its own debtors’ database and one single credit register where all the credit commitments of the person and whether he has paid the loans over time are placed.


No Jobs

Another reason you could have refused a loan application is if you don’t have any official jobs at the moment, because lenders usually ask you how much your monthly salary is and when you are working, when you apply for a loan. Of course, if you were working in the shadow economy and receiving wages without paying taxes, then the creditor would most likely not give you a loan even if your salary is high, so this is another reason to start paying taxes because you can get a loan, when you need it.


Income too low

Income too low

The reason for the lack of a job is also the amount of monthly income where, if you have too little income, the creditors may refuse you the credit application because they think you will not be able to repay the loans you received. In such cases, creditors often give the message that it is possible to get a lower amount of credit or simply refuse, so we can safely not be able to get it again.


Too high credit liabilities

If you have other credit liabilities with banks or other creditors, such as mortgage loans, auto loans or even other fast loans, then lenders can see that you will not be able to repay the loan and therefore refuse the loan application. Of course, these lenders cannot look at all of your credit commitments, but there are also credit bureaus in Latvia that assess people’s insolvency, who are also available for this.


Age Limitations

Another very topical refusal version is the age limit, where the prospective debtor is too young or, on the contrary, too old. LNC members have made a decision where they issue credits only from the age of 20, but loans are issued to people under 60 or 70 years of age. If you are under the age of 20 or up to 70, then it is likely that the lenders will refuse the loan!


You already have a loan with this company

You already have a loan with this company

The last option may be that you already have one credit commitment to this company, as non-bank lenders usually have rules that at the same time each customer can only have one credit and if you have not yet repaid the loan but try to apply one more then most likely to refuse it.

Regardless of all these options, we see that lenders want to find out basically whether their client, in this case, you are able to repay the loan in time, and if there is any data on you that shows the opposite, then the loan will most likely be refused. On the one hand, it is already right, because otherwise people themselves can get into big chips because they will not be able to repay these credits!

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