There are a number of reasons why you may have been refused a loan.
- Some lenders only approve loans for certain areas. It may be that you have applied for a loan in a postcode which is not covered under that particular lender. Make sure you understand a lender’s terms before applying for a loan to avoid being refused for such reasons.
- You do not make sufficient assessable income to service the size of loan you were applying for. Or your assessable income type was not deemed acceptable by a particular lender, for example income from Centrelink payments, commission or overtime may be deemed unacceptable for loan applications.
- Some lender’s policies and procedures do not allow applications from people with certain types of credit impairment.
- Loans above 80% Loan to Value Ratio (LVR) will require a mortgage insurance policy to insure the loan in the event of a loan default. It may be that your property, client profile and credit history, or your ability to service that loan did not fit with the insurer’s policies.
Bad Credit Loans may be able to help if you have been refused a loan. The first step to a better understanding of your financial situation is to apply for a free credit analysis report, or please contact us for more information.
