Why can they deny our request for personal loans?
Getting fast money (mini-credits)
When we seek financing through personal loans, the same question always lurks. “Will they give it to us?” Despite having a stable income and that entities have returned to grant more credits we are not always guaranteed the financing we seek . There are many factors that entities consider before accepting or denying an application for personal loans.
What does it depend on to accept our request?
These are the variables that entities will take into account when we request personal loans:
It is one of the most influential factors, but it is not the only one . We must have a regular and sufficient income to be able to ask for the financing we need. If we apply for a mini credit , normally an income of € 500 or more will be sufficient. However, if we apply for personal loans for larger amounts, we will need a higher income.
It is not the same to have a temporary or indefinite contract, to have 10 years in the same company or just a few months, to be autonomous or to be a pensioner. Job stability is a very important factor that offers the bank the “guarantee” that our income will remain stable.
It is a factor that usually goes unnoticed, but it is a very important one when banks perform the previous analyzes to determine our level of risk . View the history of past loans will help entities to assess what type of borrowers we are depending on whether we always pay on time, if we incur any default or perform a prior amortization.
When we apply for funding, the monthly fees we pay will take a toll on our income . The more fixed monthly expenses we have, such as a rent, a mortgage, credit card installments, courses … it will be more complicated for us to face another expense.
Personal loans have no specific guarantee . However, the borrower will respond with his present and future assets in case of non-payment of the credit. Owning a vehicle or a home will be a point in our favor when requesting financing.
Being registered in files such as RAI, ASNEF or Equifax will never be good when we want to ask for personal loans. Even if it is small debts contracted by an invoice from our telephone company with which we disagree, it will be very difficult to get the financing we need through banking entities. If we are in this situation, there are personal loans with ASNEF to which we can go.
How to save with your personal loans
These are some small tricks that we can implement to save with our personal loans:
Negotiate conditions : practically all banks have a little flexibility to renegotiate the terms of personal loans. If we negotiate with our entity, it is very possible that we get them to reduce or even cancel the commissions.
Pay the commissions before : when our entity charges us study commission or opening we have two options: the first is to pay it all at once , the second is to add the money that add the commissions to the loan amount . If we decide to pay it in installments along with the loan, we will also be charged interest on the commissions so we will end up paying more.
Choose a short term : within our financial possibilities we must choose the shortest possible term to pay less commissions. A loan of € 10,000 to 5 years with an interest of 6% will be much cheaper than a loan with the same conditions for 10 years.
Amortize in advance : if possible, we must amortize all or part of our loans . In this way we will end up paying less interest, just like when we choose a shorter repayment term.