You need a loan for a new car, to start your business, or to repair your leaking roof, but the bank rejects it: you make a credit refused. Money being the sinews of war, you are of course unhappy and ready to fight with your banker. Before taking out your stick, it is necessary to understand the reasons for a refusal to be able to bounce back and win a new request.
Banks can be very reluctant to grant a loan and therefore easily refuse a credit: this represents a risk for them as well as for you. Banks tend to want to avoid over-indebtedness of individuals and the non-repayment of borrowed money. This can be understood, could you lend money to someone knowing full well that he could not return it to you?
Your request RA and may have been denied e for the following reasons:
1. You are blacklisted
Unfortunately you are registered in the CCP file. This central must be consulted by the lenders before granting a new credit. Indeed, as soon as the signing of a consumer credit agreement or a mortgage contract, the lender is obliged by law to communicate the identity of the borrower and the characteristics of the contract. If the borrower faces repayment difficulties, the lender will have to blacklist the borrower under certain conditions. Indeed, any delay in repayment, or non-payment of a debt of more than 3 months after its maturity must be reported by the lender to the National Bank.
You may also have a declined credit because you are stuck on a second blacklist. This list is called unregistered records. This list is separate from the CCP file, in that it records only the data on payment defaults of credit agreements and litigation commitments that are not taken up by the CCP. These must be concluded for private or professional purposes by natural persons. The data are only communicated in case of default of more than 3 months.
Therefore, if you are registered on at least one of these two lists, banks are not allowed to grant it. It is therefore normal that you face a denied credit.
2. You do not have the right profile
If you are under 25 years old and you are unemployed, without guarantor, without assets and over 11 months out of 12 months, you will surely see your credit denied: banks do not like unstable profiles.
As a result, age, number of children, income, and savings capacity are important criteria for lending. Past bankruptcies, the difficulty of repaying an old credit unfortunately do not play in your favor. As a result, credit institutions favor better profiles such as a Borrower with a stable job (CDI), high and sufficient income, and an ability to save.
3. Your budget is not suited ed
The banker should check your profile and especially the management of your budget. It examines in particular if the level of indebtedness is too high compared to what you have left to live. Before you give yourself a certain amount of money, the banker will check your expenses and see if you have enough money to live and pay at the same time. As a result, the amount requested is very important. Indeed, it may be excessive given your insufficient or irregular income.
The bank that has not been packaged by your profile is not packed by your guarantor or co-borrower. Indeed, if they have the same profile as you, it is not surprising that your application is denied. Now that you have the main reasons for a declined credit, let’s look at the solutions that will help you put your chances on your next application.
4. What to do if you are banned
There is little else to do except leave time behind. Indeed, as of the regularization of your old loan ie as soon as the payment of the sums due, you will have to wait one year. This is the duration of removing your name from the blacklist of the CCP. After this period, you will have the opportunity to apply for credit without the lenders you find on blacklist. However, if you do not pay your debts, you will be stuck for up to 10 years and can hardly apply for credit during this period.
Go see another banking group
Indeed, each bank has its criteria. Moreover, they are not the same depending on the loan you ask. Added to this are the bank’s different policies and the context. If you are refused by bank X, you can very well be accepted by bank Y. Therefore, do not hesitate to go elsewhere. Our loan comparison tool can help you.
If you think that you do not trust your banker, do not hesitate to call for bonds. These must be much more reliable than you and have a stable profile. Indeed, it is necessary that they have a job, a stable salary and a sufficient capacity to repay. They should not therefore have had problems with the banks. These guarantees or bonds may for example be your parents, your grandparents or your rich friends.
Put the odds in his cot ed
At least 3 months before applying for your loan, avoid being exposed. For that, take good habits: try to reduce your expenses and by balancing your budget. Be crazy, even try to save if you can.
Be prepared to reduce your demand
If a sum seems too difficult to obtain, do not hesitate to reduce your request. In fact, if the bank refuses an amount that seems excessive, especially because of your limited ability to repay, you can submit a new, more reasonable amount. You will then put all the chances on your side again.
And finally: Our tips for saving money
This process is time consuming so be patient about setting up and processing your case. Take advantage of this time to browse our articles on personal finance management and become a pro in managing your budget.