Before issuing the requested sum, the banks and credit institutions carry out in-depth checks and analyzes to determine the level of creditworthiness of the applicant, with reference to his present and past situation. In fact, should criticalities emerge, the bank will be forced to refuse the loan request to eliminate the risk of insolvency, or not to see the sum granted return.
Why can a loan be rejected?
The reasons that can push a bank or any credit institution to reject a loan application are different, but essentially linked to the applicant’s assets and liabilities, or to its credit history. When evaluating loan applications, credit institutions carry out checks to assess the investor’s creditworthiness and determine its creditworthiness, or the ability to repay the requested sum.
In this phase the credit institutions will analyze the data present in the Credit Information Systems, of the databases in which all the information relating to the credit situation and to the relationships between the individual saver and the credit institutions are collected. These records contain the information of all those who have applied for a loan in their lives, and not just bad payers.
A report as a bad payer or a protested subject could therefore represent a valid motivation for the bank to refuse a request for financing, representing the proof of the high risk of insolvency to which the credit institution could expose itself by providing the requested sum.
Among the reasons that can lead to a refusal are all precarious work situations with atypical or expiring work contracts, with salaries that are too low compared to the amount of the possible repayment installment. Also the presence of other financing in progress, because they could generate a state of over-indebtedness for the customer, which would not be able to sustain the payment of the repayment installments and all other recurring expenses.
What to do if a loan is rejected?
If the loan application is rejected it is important to spend some time before submitting a new request. All information relating to denied loan applications is in fact reported to Crif, the body that manages all credit information, and kept in the archives for at least 30 days. For this reason it is important to spend at least a month before making a new request.
Furthermore, in case of refusal by the first credit institution, it is important not to contact others immediately. All the banks have access to a single information network and therefore are able to verify not only the credit history of the individual saver and his current financial position, but also if he has made other requests and with which banks. So in case of refusal, the chances that the response of the new bank is also negative will be very high.
Another solution to be evaluated before making a new request is to look for a guarantor, that is a person who can intervene in cases of economic difficulty of the holder of the loan. In this case it is essential that the person offering himself as guarantor has a stable financial situation and a provable source of income. Better to check these conditions before going to the bank again.
What are the other possible solutions?
The loan with the assignment of the fifth represents a possible solution to be considered in the event of refusal. In this case the possibility of deducting the installment directly from the salary or pension represents a valid form of guarantee for the bank. If, on the other hand, the reason for the refusal is due to the presence of other ongoing loans, it is possible to evaluate the debt consolidation solution, which allows the various loans to be combined into a single installment and the conditions revised, changing the amount of the monthly installments or the duration of the loan.