1 Insufficient income and assets
If the bank believes that the income of the applicant and his financial situation are not sufficient to guarantee the repayment of the debt. Usually, the loan installment must not exceed one third of the monthly income.
2 Precarious work situation
If the employment situation is precarious or you have a fixed-term contract almost expiring and, therefore, the conditions that demonstrate the ability to honor the debt are lacking.
3 Bad payers
If you have been reported as a bad payer in the Lon lists: for example, for having delayed the payment of at least two loan installments previously obtained. To be able to access a loan, cancellation from the bad payers list is required.
If the checks on the lists of central credit card companies (LONs) are protested even for not having paid a bill of exchange at the end of the term.
5 Multiple loans
If you have other loans in progress the bank can refuse the loan to avoid situations of over-indebtedness of the customer.
6 Multiple loan requests
If at the time of application it appears that other requests for personal financing have been made to several credit or financial institutions. Banks do not like this practice as they can consider it a valid reason to refuse financing.
7 Refusal received within the previous 30 days
If it appears that a loan previously requested has been refused. More specifically, this information is stored in the Lon lists for 30 days. Therefore, against a refusal obtained, before submitting a new question, it is advisable to wait for this information to be deleted from the databases.
8 Guarantor of bad payers
In the event that, even if they are good payers, they have been signed as guarantor in favor of a loan in the name of a third person who has not paid the installments regularly.
9 Inadequate guarantor
He presents a guarantor who is himself a bad payer or a protestor or who, in any case, does not prove to have a financial position such as to honor the debt in the event of insolvency on the part of the loan holder.
10 Lack of information
If you have never requested loans before and you are therefore unknown to the Lon databases. In this case, it may happen that the loan is refused because information on the customer’s creditworthiness is completely missing and the bank is unable to verify its reliability.
By law, the bank (or finance company) that has refused the loan has the obligation to inform the client about the reasons for the refusal, in particular with regard to any negative data present in the credit information systems database.