This is not a rare case, it happens far more often than we think that our credit application is not validated by the bank. But there is no need to worry, because the situation is not unavoidable. New doors are yet to be discovered.


Why was the credit file rejected?


This is the first question to ask, because before proceeding to the solution, we must already begin by finding what could have been the cause of the problem. In principle, to grant a loan, a financial institution focuses on the client profile, the file presented and especially the guarantees that are presented by the future debtor.

The essential criteria are to this end the fact of having stable and regular income, the employment of the subscriber and his savings capacity as well as his ability to repay. In general, the bank will refuse to grant a loan if it finds that the risks are too great.

  • If the refusal is motivated by a high debt ratio

This is the classic reason most often invoked by a bank to justify its refusal to grant a loan to a client. In this case, the bank finds that the debt ratio of the debtor would be higher than a third of its income. The solution in this case is to reduce the capital requested in the loan or to ask for an extension of the duration of the loan contract.

  • If the refusal is motivated by the absence of a stable job

For the bank, the loss of a stable job situation is synonymous with big risks compared to the commitments to be honored. In this case, simply avoid going through banks for your credit application, and instead think about using credit between individuals.

  • If the refusal is motivated by insufficient credit

In some cases, borrowers are not able to provide all the collateral needed for a bank to provide credit. In this case, it is better to bet on the nature of the offer and when the guarantees are not sufficient, it is recommended a subscription to a credit without justification.


Call a credit broker


The broker, who specializes in trading, could take back the file and examine it professionally to determine what may have gone wrong. He will in principle be able to advise you and rearrange your file to minimize what might be considered one of your weaknesses. He will be able to study what loan, what kind and how you could obtain it.

In addition, the broker can also help you find a credit institution that is appropriate to your situation. And do not forget that during the negotiation, you can be assisted by your broker.


Your recourse after the refusal

Your recourse after the refusal

It is not possible to simply require a bank to give us credit, if it believes that the conditions imposed are not met. Nevertheless, other alternatives may be considered.

Generally, if you feel that your borrowing capacity is there, there is no problem in continuing to apply to other financial institutions. Otherwise, it is best to start by optimizing your borrower profile.

Moreover, it should be noted that if a credit is refused, it is not so much for personal reasons, but on the contrary, to avoid the debtor to find himself in an untenable financial situation.