What should I do if I have been denied a bank loan?

When we need a bank loan, our worst fear is that the financial institution will deny us. And in reality this can happen if we do not meet the requirements you request, for example:

  • Be between 19 to 70 years old.
  • Not having a negative rating in credit bureaus.
  • Have income that exceeds S / 700 per month, etc.

In this post we want to address one of the most frequent reasons why a loan is rejected, that is, due to a bad credit history. That way we can guide you to solve this problem.

I was turned down for a bank loan because of my credit history

bank loan rejection due to credit history

When your loan application is rejected, it is important that you ask the bank for the reason for this rejection. Credit history is usually one of the main reasons, either because you do not have one or because you have a poor rating in the credit bureaus. Another reason why they may also reject your application is because the amount requested exceeds your debt capacity.

Here are some tips to stop being rejected by the bank:

Reduce the debts you have

reduce your debts

As we mentioned before, one reason why you may have been rejected is because you exceeded your debt capacity. If this happened, it is better that you pay off the debts you have as soon as possible. Start with your credit card debts, which are the ones that usually charge the highest interest.

Ask for a more consistent amount

A second reason why they may reject you is because the amount you ask for is not consistent with your debt capacity or your ability to pay. If this is the case, the solution is to start by requesting a much lower amount.

Check your debt report

check your debt report

If the reason for the rejection is that you have a bad credit rating, we recommend that you review your SBS, Infocorp or Sentinel debt report to verify this information. Any unpaid debt, no matter how small (for example, not having paid a phone bill years ago) can be preventing you from getting the loan you need.

If this is your case, it is better that you get up to date with the payment of your debt, request the letter of non-debt and present it before Infocorp and the SBS. Now, doing this will not automatically make you a candidate for loans again, you will also have to re-create a positive credit history, to reintegrate yourself into the financial system. At alDía we have the perfect program to help you achieve this goal, contact us and ask about the program Reinsert.

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