There are a few standard reasons why a bank rejects a payday loan application. Some of these reasons can be overcome by the prospect, but most or not immediately.
The main reasons of bank credit rejection
The following ten reasons are the most common standard reasons. There are also several other reasons why banks reject loans that sometimes have nothing to do with the customer.
- negative credit bureau
- fixed-term employment contract
- Student, pensioner or housewife
- too low income eg because of part-time
- Return debit notes or bookings from debt collection agencies
- false information in the payday loan application
- too high credit
Other reasons are only slight ambiguities in the payday loan application, which arouse the suspicion of a quiet cheating the customer, sometimes it is also a bad line to the credit counselor and sometimes both in context. But there are also reasons that have nothing to do with the customer, at least not superficially.
For example, if a bank had recently suffered large loan losses, it could have tightened its lending policies and now examine each application three times. Customers who previously received a loan, then go out at once empty. So it may be that the borrower is denied despite positive credit bureau the credit.
What can the prospect do with a loan rejection?
The credit rejection can sometimes be overcome by the same bank. If it is ambiguity in the payday loan application, which are really based only on a mistake of the customer, this can be cleared up. Also, a too high credit or the desire to repay the loan very quickly with high installments (which the customer can not seem to create), must be overcome by adapting such requests as a reason for refusal.
In some cases, the customer may contact another bank that will help him. But there are reasons for the credit rejection that exist at any German bank or savings bank. These include primarily the negative credit bureau and an income below the attachment exemption limit. Also certain age limits pull up the German financial institutions, albeit in different places.
For some banks, people over the age of 65 or 67 no longer receive credit, sometimes it is already 60 or 62 years of age. People who apparently do not get loans from the bank can contact a reputable credit intermediary. For this there is the exclusion criterion of bankruptcy (or submission of the sworn statement), otherwise make good intermediaries much possible.
Alternatives to bank credit
If you need to finance your purchases quickly, the classic loan from financial institutions is not always the first choice. Especially if a negative credit bureau entry exists, house banks and savings banks do not give credit.
A soft loan can also be given directly by private lenders. A private loan can be settled quickly and paid out. In Germany you can legally borrow from reputable private money lenders, in special platforms the much-needed money.
The financing by private individuals takes place in the platforms without much paperwork and completely unbureaucratic.
Where can I get emergency help if there is a shortage of money?
If the payday loan application was rejected by the bank or savings bank, the following alternatives are available:
- Borrow money from private individuals
- Credit intermediary for Swiss loans
- Chance of a positive credit decision
The application was rejected by the financial institution, should I borrow money from the loan shark?
Has your payday loan application been rejected? What experiences did you have with such a refusal? Write us your testimonials!