- November 20, 2019
- Nathaniel Watson
- Comments Off on Credit refused without reason? Explanations of a credit refusal
Refused credit is always a big disappointment. But a loan refused can have very varied reasons: too many credits, too risky profile, too much amount borrowed. Take stock, and use our comparator to avoid a negative decision.
Credit refused: too many credits
If you already hold several credits and request a new one, chances are that your refused credit is due to your debt ratio, the consequence of too many credits.
For example, if you already have a car loan, a home loan and a store credit card, it could be that if you applied for a loan to do work in your home, you could get a loan that was refused. The conditions for obtaining a credit oblige the lending establishments to check the creditworthiness of the applicant. It is not necessarily that you can no longer borrow but it is that you reach a limit debt rate and therefore a loan refused.
The solution of buying back credits
In this case, the right option is not to request a new loan that will put your monthly budget balance in the red but to go through a loan buy-back. A loan repurchase consists in gathering all your debts in only one and to extend the duration of repayment so that your monthly payment decreases. If your credit refused was due to a high debt ratio, with the repurchase of credits, it will decrease and you increase the chances of obtaining your credit.
But it is not because you have had a credit refusal (or a credit accepted then refused at the final study) and that you are going through a repurchase of credits that you have to let yourself be done on the rate that you will get. In our comparator, the best personal credit rates, including the repurchase of credits, are listed. You will therefore obtain the classification of the best rates.
But that’s not all. We have developed an exclusive system which also makes it possible to obtain a non-binding assessment of the request from the organization offering the cheapest rate. In the event of a loan being refused, our comparison allows us to better understand who is really going to be able to invest and which organization only displays attractive rates but refuses far too many applications.
Finally, when it comes to buying back credits, whether or not you have had a loan refused, remember that starting rates can be negotiated! They will assess the rate as accurately as possible in relation to your file, so don’t hesitate!
Credit refused without reason
You have the impression that your credit is refused without reason. It’s very frustrating, but be aware that if a credit agency makes a negative credit decision, they don’t have to motivate them. In particular because of the credit refusals linked to the behavior score. A credit refused because of the acceptance score means that people who have the same profile as you (age group, seniority in employment, in banking, type of housing, etc.) have had problems with repayment of their credit with this organization.
So you have nothing to do with it, but according to this organization, you look like this profile and you end up with a credit refused for no apparent reason. But not all organizations have the same profiles of risky people. So that you do not have to complete all the credit questionnaires of all the organizations, we have developed a single questionnaire. Once our questionnaire has been completed, we will give you the lowest rate ranking and you will be able to choose which credit organizations you want us to submit your file to increase the chances of being accepted and avoid credit refusals without reason.
Credit refusal: amount borrowed too large
If you borrowed a large sum over a short period to benefit from a very attractive rate, you may have had a loan refused because of significant debt but only for the credit that you are asking for. The lowest rates are offered over 12 months, such as 2.80% or 2.90% fixed APR rates. But if you want to buy a car at 15,000 USD for example, you will have to pay monthly payments of more than 1000 USD per month. Unless you are earning a very good living, there is a good chance that the criteria for accepting credit will result in credit being declined. In this case, you must borrow on a longer period and thus lower your debt.
Tips for getting out of an impossible situation
If you can not do it at all and you have credit refusals everywhere and even your credit buyback refused, it is probably that you are really in the red. In this case, it may be necessary to consider filing a Banque de France over-indebtedness file. It is better not to wait too long because it is often the waiting and the silence that make the situations worse.