Imagine: you are finally ready to take a big step towards independence. Your own car, your own home, your own business… all the things you can dream of, but also cost a lot of money. Fortunately, there is the solution: to borrow money. But what happens if it is denied?
First of all, you do not have to give up hope, this dream car or this dream home is coming! But good preparation is important. We will briefly describe what you should consider when applying for a loan.
When can my loan be refused?
Banks do not distribute loans all the way. Borrowing can be a risk for you, but also for the bank. The three most common reasons for refusing someone loan are:
1. The blacklist
You are on the blacklist of the central for loans to individuals or the list of unregulated registrations. You will end up on these lists if you have had problems with payments in the past.
2. Your profile
Second, your profile will be watched. Your age, income, number of dependent children,… It is important for banks to know that you have financial security. So you must at least have a fixed income every month.
3. Amount on the account
Finally, the banks also look at the amount on your account. If the calculations show that you will not be able to repay the amount, it is impossible to give you a loan.
What are the alternatives?
First, you can browse the proposals of several banks, but the move is not necessarily necessary. Loan simulations can be found easily on their various online site.
You can also reduce the amount you want to borrow, which increases the chances that banks will accept your request. If it is useless, you have two more options:
There is micro-credit. This involves borrowing a small amount in the short term. The amounts usually vary between 50 and 200 euros and must be repaid within 30 days. The only drawback is that you can not borrow large amounts of money like buying a house, for example.
Borrowing money can sometimes seem like a thing miles away. But you should not always look far. It is also possible to borrow money from parents, family, friends,… There are not always rules imposed, but we must discuss everything. It is therefore important to put everything on paper. Especially since money is something that can affect relationships quickly.
Before taking out a loan, think first about the best options for you.