Decline by Another Bank
Why was I declined by the bank for a loan?
Some of the common reasons for decline are
- You don’t have enough money for a deposit
- You are underestimating your ability to pay
- You can not show proof of savings
- The property is not suitable
- Your credit history is poor
- You have too much debt
- You can not provide the necessary documentation
What happens if I am repeatedly rejected?
Whenever you apply for a loan with a lender, regardless of whether it is approved, a hard inquiry will be listed on your credit file. While a single inquiry will unlikely pose a problem, multiple inquiries on your credit file will result in a lesser credit score. Many applications in a short time also suggest to potential lenders that you are a risky borrower, thus further decreasing your probability of approval. Therefore, it is important to apply to a lender that is likely to approve your application.