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Why Loan Applications Get Rejected Despite Excellent Credit Score

Was your loan application rejected in spite of your having an excellent credit score? This is more common than you think. Financial institutions also use various other parameters to decide on loan applications. Not measuring up on any one of them could be the reason behind the rejection.

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Why Loan Applications Get Rejected Despite Excellent Credit Score

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  1. Why Loan Applications Get Rejected Despite Excellent Credit Score

  2. Even If You Have A Stellar Credit Score, Your Loan Application Can Be Rejected. That Is Because There Is More To One’s Creditworthiness Than Just A Good Credit Score.

  3. • Not Meeting The Income Criteria: Every Lender Will Have Their Own Strict Income Criterion For Loans. If Your Monthly Income Does Not Match The Benchmark Set By The Individual Institutions, Then Your Loan Amount May Be Rejected.

  4. • Unstable Income And Constant Job Change: Lenders Want The Applicant To Have A Stable Source Of Income. If You Are A Newbie Or Someone Who Changes Job Frequently, Getting The Loan Approval Can Be A Far-fetched Dream.

  5. • High-Debt-to-Income Ratio: Debt-to-income Ratio Is The Percentage Of Your Income Spent On Repaying Debts Like Your EMIs And Credit Card Bills. A Percentage Above 40 Is A Red Flag For Lenders.

  6. • Brief Credit History: Despite Having A Good Credit Score, You May Not Get The Loan Because The Lender Is Not Convinced With Your Track Record.

  7. • Previous Bankruptcy Or Foreclosures: If Lenders Find Records Of Bankruptcy Or Foreclosures In The Past, They May Reject Your Loan Application.

  8. • Type Of Credit Score Model: Different Credit Bureaus Have Different Scoring Systems And So, One Needs To Know Which Bureau The Lender Is Accessing.

  9. • Poor Credit Score of Guarantor or Co-Applicant: If Your Guarantor Does Not Have Good Creditworthiness, Your Application Will Not Be Cleared. The Same Rule Applies To The Co-applicant.

  10. • Wrongly Filled Application: If Financial Institutions Find That Some Of The Provided Details Do Not Add Up, Your Loan May Get Rejected.

  11. We Do Not Want You To Have An Impression That Credit Score Is Not Significant. However, Lenders Assess A Loan Application On Other Parameters As Well. So, Make Sure You Have Ticked All The Boxes.

  12. Thank You !Would Love to Hear From You Hero FinCorp Limited 09, BasantLok, Vasant Vihar, New Delhi - 110057 Tel. 18001024145 Email Id: corporate.care@herofincorp.com Website: https://www.herofincorp.com/ Know more about- Why Loan Applications Get Rejected Despite Excellent Credit Score

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