Maybe you’re looking to apply for an African Bank loan or generally checking out online loans. Either way, lenders are becoming stricter and so a lender might decline your application. Here’s why:
You’ve taken out instant cash loans before
Perhaps you’ve previously taken out a short term loan such as a payday loan. Well, even if you’ve paid the loan back in full, it might reflect poorly on your credit record. Loans can make you look financially unstable.
You don’t have enough regular income
When applying for online loan pre-approval lenders will want to know how much you owe in cash loans. This is because they need to be sure that you can pay back the loan. Different lenders have different ideas about how much you need to earn before paying you out and if you don’t make the cut, be prepared for a “no”.
You’ve previously missed debt repayments
Having any sort of default on your credit file when applying online for loans won’t look good for you. That shows that you struggle to deal with your loans. While many of us are at risk for whatever reason, actually having missed payments can be cause for lenders rejecting your online loans application.
You’ve been moving house and jobs a lot lately
Moving jobs and house quite a bit in a small space of time is also a stability issue that lenders aren’t keen on seeing. If you’ve settled at one job and in one home, your finances will look in good order when you want to apply for loans online such as a standard personal loan. Changing homes and jobs is pricey and that’s why lenders prefer to know that you have lived in one place for a long time.
You’re an online gambler
Many personal loans applications will require you to provide recent bank statements as proof of income and expenses. Some lenders aren’t keen on paying online loans if they notice excessive amounts of gambling payments on your account.
You’re heavily in overdraft
Whether you’re applying for a personal online loan, or any other type of loan for that matter, if lenders notice that you’re consistently living into your overdraft, they’re likely to question once more your stability and may not consider you a safe borrower.
You’re self-employed and looking for online loans
If you’re self employed it can mean that your salary isn’t necessarily steady or you don’t have traditional payslips. The longer you can provide records for your income when seeking African Bank loans, the better your chances are of approval. An erratic payment schedule can leave lenders a bit nervous.
You’re asking for too much credit on your African Bank personal loans
Applying for different loans in a short space of time is frowned upon by many lenders as it makes you look desperate. So it’s a good idea to understand how likely an approval is before you start applying for online loans.
You’ve never had credit
Believe it or not, having a positive credit file means a lot more than just not having past debt. It also means that you demonstrate your ability to not only borrow, but, importantly, pay back on time. Therefore, if you’ve never applied for credit before, you might actually find your application being rejected, as there’s no way to prove that you will properly handle the debt.
Be wary of these 9 possibilities for application rejection when you apply for online loans.
Next step: complete and submit the form on this page to apply for a loan