At the time of requesting a loan, we hope that it is authorized, most financial institutions take into account the person’s credit history in this regard. In this way, they evaluate if the applicant is complying with his payments and if he has any debt. However, there are also other factors that entities analyze in order to make a decision on whether to approve or reject the application.
It should be considered that the response to the request for a loan only corresponds to the institution where the process was carried out, therefore, it is under their guidelines and internal policies, for this reason here we will give you some tips so that your request is successful.
Analyze your financial capacity to cover the debt. Photo: Pixabay
A very important aspect when requesting a loan is the application form, you must take into account that an erroneous detail can be the cause for the credit to be denied. So it is recommended that you be cautious when filling in your data.
The most important data that these institutions analyze corresponds to salary, length of service in the company, type of employment contract, as well as the credit bureau.
1. Don’t add data just to put it
An important element is the references, because it can be a significant reason for the financial institution to approve or not your credit.
It is advisable to add references who really know you and speak well of you, especially in your experience and behavior with debt.
2. You must be registered with a risk center
Even if you have truthful and verifiable information, as well as good references and adequate debt capacity, it is important to be registered in the database of a risk center. Because a main element for the financial institution to grant you credit is to review your credit history since the credit bureau handles both negative and positive information on financial behavior.
There are several options to register with a risk center, for example having a savings account at the bank, in case of having a good management they serve as a good credit history.
3. What can you do if the credit is rejected?
If you have a negative response to your request, it is best to settle your pending debts, it is also better to make a financial plan and reduce expenses, stay at work and analyze the erroneous data around the request. In this way, in time you will be able to have a good credit profile for financial institutions.
4. Reflect on your budget
It is important that you analyze your ability to carry debts, it is better to avoid being a delinquent debtor. In this sense, it is recommended that you build a financial plan in which you can evaluate both your income and your expenses, in this way you can define a monthly budget to meet the debt you are going to acquire.
5. Analyze the debt and income ratio
To do this, you can make a calculation considering the amount of the debt plus that of your income and your monthly expenses. In this way, you will be able to know the amount with which you can borrow and your availability to do so.
In the event that the line of credit is higher, it means that it is not available to you and will probably be rejected, it must be considered that having a debt that exceeds your payment capacity can represent a big problem.
Once some time has passed after the denied application and you have managed to identify that you can really assume the debt, ask for the credit again. This time it is more likely to be authorized.
For you to continue being informed about this and other related topics, we suggest you visit our Credits section.