Credit declined: What is the trigger?
Almost every company offers low-interest loans through its in-house finance department. Regardless of the industry, you can finance all consumer goods and services through loans. In the end, the consumer often ends up in a spiral of debt, which is made up of a vita of loans. Be it a disposition loan with the house bank, the financing of a car, or installment loans with mail order companies. Mobile phone contracts with subsidized devices also fall into this category. Not to mention the mortgage for a house.
Anyone who has exhausted their financial budget and secured living standards through loans will very quickly receive a message from the bank that the new loan has been rejected. The reasons that lead to this decision are often not explained in more detail. Because even with a supposedly good credit rating, it can happen that a loan is rejected.
Credit Bureau and other reasons
Whether you lease or finance a car, sign a new mobile phone contract, or want to treat yourself to a trip. Every time a reputable money house will subject you to a credit check. Here, for example, a scoring value is calculated at Credit Bureau or Creditreform. Unfortunately, the procedure here is not transparent to the borrower.
Factors why a loan could be declined
An invoice that is not paid on time may result in your loan being rejected. Most companies work closely with Credit Bureau and Creditreform and pass on this data bluntly. So you have a negative characteristic in your creditworthiness, which makes it difficult for you to take out loans. Incidentally, negative features will only be deleted if you can demonstrate that there is no longer any reason to do so and accordingly request that the entry be deleted.
In fact, your place of residence may result in a loan being declined. This may be the case if, unfortunately, you have someone in the neighborhood who has a very poor scoring score. It is then assumed that many people in this quarter live with poor payment behavior.
If you have more than one account and credit card, an account with a low credit line can result in the loan being declined. Especially if you as the customer are not personally known to the rejecting credit company. In general, you should first negotiate your loans with your house bank. Beware of asking the nearest bank immediately if the loan has previously been declined. If the loan is rejected, this request will also be included in the credit rating and will be assessed accordingly in the next attempts to take out loans.
Mobile phone contracts can also be a stumbling block when it comes to lending, and once again you get the bad news that your loan has been rejected. This may happen if you have several contracts with mobile operators within a very short time. Unfortunately, this also affects your creditworthiness and makes it difficult for you to take out loans.
If the loan is declined, What you will do?
You should not be tempted by advertisements that offer you a loan without Credit Bureau. Most of these companies operate from abroad and are in a legal gray area. You often pay your loan here with completely excessive interest. You should refrain from this loan, especially if a bank charges processing fees in advance for applying for your loan.
The easiest and cheapest way is to seek a conversation with your house bank to get a loan. Here you are personally known and have the opportunity to explain any inconsistencies in your credit rating. It is then up to the administrator to decide whether or not the loan will be rejected. Of course, every bank is interested in selling you the desired loan. But once a loan is declined you will have trouble getting a loan elsewhere. If it should happen that the loan you applied for is rejected, contact Credit Bureau and Credit reform immediately. They are obliged to provide you with information. This gives you the opportunity to react to discrepancies. It is hopeless for taking out a loan if you have taken an affidavit, you have a warrant for arrest or you have received a payment order. In these cases,