Reasons for Personal Loan Rejections

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Personal loans are necessary, especially if you need extra cash to cover expenses for a short term purpose, such as a holiday getaway, home renovation, a wedding and many more. Getting personal loans in the Philippines can be quite tricky, but if you read a lot of articles such as this one, chances are, you can prepare yourself and do the necessary things in order to secure that much needed loan.

If you have filed for a personal loan at a bank and it has been rejected, there are a few reasons you need to understand about why it happened the way it did.

1. Poor credit history –If you have been using credit cards and not being able to make a payment on time or unable to hold up your end of the bargain and other things, these actions could be taken against you. Loan officers need to review your credit history as an assessment to see whether you have the ability to pay off a mortgage. If you have not been able to do so, it will definitely reflect on your history. If you’re unable to pay your current credit debt, what makes the lender then you can pay for this one?

2. Employment doubts – If you are currently unemployed or have gained a reputation for moving from one job to the next, this will definitely harm your chances of securing a personal loan. How will you be able to pay off a loan if you don’t have a fixed income source? It will be difficult to do so without a full-time job. Officers prioritize job security and will look at how long you’ve been working for a specific company.

3. Inadequate income – You might not be making enough money in order to pay for your monthly mortgage. Remember that your income does not only go to the payment of the loan, but it also goes to other things like expenses such as rent, transportation, utilities, etc. Your current income should be able to cover all of these things.

4. Inconsistent details – The details that are required of you to write when it comes to filling out papers may be inconsistent with one another. The information that you provide must be accurate and factual. If necessary, you can support it with supplementary evidence. Officers thoroughly check both personal and work backgrounds before approving that loan.

5. Questionable loan purpose – Your intentions must be pure when it comes to borrowing money from a lender. If they find that you are not able to pinpoint a definite answer to their questions about this, this is probably why your personal loan has been rejected in the first place.

These are just a few things that you want to consider when you are securing loans in the Philippines. Try to avoid all of these reasons altogether and you will definitely increase your chances of having that personal loan approved. It is quite normal for the loans in the Philippines to be part of a process to be long and tedious. Just be honest and meet with all the requirements that your lender provides and you should have that personal loan in no time.

Maricor Bunal has been a Project Manager and Content Writer for a long while. Her passion in writing is her main drive in crafting articles that are engaging, informative, and meaningful. Her partnership with Loan Solutions PH has given her a whole new opportunity to take writing to a whole new level.

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