Personal loans may help you quickly deal with unexpected expenditures. Unfortunately, not every personal loan application can be approved. When you apply for a loan, the financial institution initially investigates if you are a trustworthy borrower. If you do not satisfy the criteria, your loan application will be denied. Here are some common problems encountered by borrowers when applying for a personal loan in the Philippines.
If you are a loyal customer of a bank or a financial institution, and have carried out many transactions over the years, you will easily succeed in applying for a fast approval online loan. Otherwise, if you are neither a loyal customer of any bank, nor have a savings account or credit card, it will be more difficult to get approved for a personal loan. You may have to submit additional documents and financial records to prove your creditworthiness.
Without a bank record, your personal loan application is more like to be denied
Banks and financial institutions always tend to approve personal loan applications for borrowers with stable income sources. Because this is the factor that evaluates your ability to repay the loan in the next few years. Borrowers with a fixed income, even though it may be low, are more likely to get a loan approved than self-employed borrowers with a high income.
You may be easier to get a loan if you have a stable income
One of the most common reasons for denial of an online loan application in the Philippines is credit score. Having no credit history or a low credit history score has the same negative effect on banks and financial institutions denying your loan application.
Taking into account your credit score
As a side note, if you are really in need of a fast approval online loan, do not send out an application to every bank and financial institution. Your credit report will contain all of your loan applications, whether approved or not. This will indicate that you are in financial trouble and they may flag you as a credit risk person. That means your chances of getting a loan will be even lower.
If you have a personal loan at a bank or other financial institution and have not completed your payments, your next loan application may be denied because they are concerned about your solvency. In fact, some lenders may accept this factor and agree to lend you money, but the loan interest rate will be much higher. In addition, you must provide collateral or find a person of good credit to act as your guarantor.
Don't get stuck in debt
Some borrowers applying for a fast approval online loan often ask for a large amount that is not suitable for their current actual income. In this case, the bank and financial institutions will have to review and approve a portion of the amount - which they think the borrower is capable of repaying. They may approve your loan application with a lower loan amount or refuse the loan.
Applying for a loan amount beyond your will result in failure
It’s not easy for everyone to have a good relationship with a bank, a stable source of income, or an outstanding credit history. However, if you want to successfully get fast approval online loans from banks or financial institutions, improve your credit score by actions such as paying your credit card bills in full and on time; maintaining your old bank accounts and credit cards; Spending less than your credit card limit and paying off your balance in full each month.
However, MoneyCat is another option for you. At MoneyCat, you are not required to have a great credit score. It doesn’t matter if you are an office worker or a freelancer. We do not distinguish whether you are a new or old customer. MoneyCat’s fast approval online loan is open to all Filipino citizens aged 22 and over, living and working in the Philippines and having a legal ID. Simplifying complicated documents and procedures, we review documents within 5 minutes and disburse money within 24 hours. If you are seeking a fast approval online lender with a simple, fast and reputable process, don’t forget MoneyCat.
The above are the common reasons why your fast approval online loan application is denied in the Philippines. Improve your credit score now, or contact MoneyCat and we will bring the most effective financial solutions for you.