A personal loan is a type of unsecured loan, which is offered to an individual for meeting different financial requirements. However, you might be making certain mistakes that may lead to your loan rejection. Here are some common mistakes to avoid personal loan rejection:
1. Multiple Loan Applications When you apply for a personal loan, the bank is likely to inquire about your credit report with the Credit Bureau. If you have applied for multiple loans in a row, many lenders perceive you as credit greedy and someone who is not able to handle their money properly. So, don’t rush to applying for multiple loan applications at once. Apply for a loan at one place and wait for the response. If it’s rejected, wait and try to improve your credit score and then apply again after some time. 2. Bad Credit History The credit score has a big impact on your instant personal loan application. If you have a bad credit history due to default repayments or more debts, your loan application is likely to be rejected. So, you need to maintain good credit for attaining a personal loan. 3. Higher Existing Debts You may face personal loan rejection, in case you have higher existing debts. The high debts make you appear a risky applicant in the eyes of a lender and it may result in your personal loan rejection. To avoid this, you must pay off your debts on time. 4. Unstable Employment History Many banks lend money to applicants who have stable employment or business with a regular income. If you are someone with unstable employment, your personal loan application might be rejected due to unstable income or any other financial reason.
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |