Did you go to a bank branch to apply for a loan and after talking to the employee did you see your proposal declined? Have you turned to a financial institution via the Internet and in this case you have not achieved success? At this point, would you like to know why the loans are refused? There are several reasons, let’s see them.
Have you ever heard of SIC?
Whenever a potential customer turns to a credit institution, a bank or a financial company, after submitting his request and providing all the necessary documentation, an investigation is carried out to assess his credit situation and history. What is it about? During the preliminary investigation phase, the lending institution will query the SIC (Credit Information Systems) databases containing all the information necessary to verify the reliability and punctuality of payments and to evaluate the advisability or otherwise of granting further credit to the customer.
In summary, the past relationships of the customer with other financial companies are evaluated. If the outcome is positive, the lending institution proceeds with the request for funding, otherwise the request is rejected and a report of the refusal is made to the SIC. If you want to know your credit situation or want to deepen the topic to better understand how to manage the documentation that institutions can access, you can do so by reading the article on the CIF search.
To understand why loans are refused, here are the 3 main reasons:
1) One of the main causes of refusal, obvious and banal, but often forgotten is that of one’s work situation. If you are unsure of your job and want to apply for a loan, as well as a mortgage, it is unlikely that you will be paid out. What guarantees could you give to the lending institutions?
2) Type of loan requested. For example, if you want to request a transfer of the fifth but you are a self-employed with a VAT number, you will not be able to obtain it in any way, precisely because it is a product aimed only at those who are a civil servant or a pensioner.
3) If in the past you have had several delays with the payments of other loans or have not paid the installments of a loan then you have been reported in the SIC, you may find yourself having problems with specific types of loans. In these situations it is important to investigate thoroughly, because there are also loans for bad payers.
These are the main reasons why the loans are refused.
If you want to try to get a free quote in a few clicks, you can do it on this page. We will carefully evaluate your situation to confirm whether you really cannot get more loans or if, more likely, you have not yet found the right type for your credit situation.