Are you an OFW and looking into acquiring a loan? Whether you are planning to start a small business, purchase a new car or raising funds to buy a new house or do a major house renovation, it may not take forever to raise it just from the savings you get from your salary. Many people resort to availing loans from banks, financing companies or even a close friend.
To avail a loan, you can always apply anywhere but there will be no guarantee that your loan application will be approved instantly.
Why do loan applications are declined?
There are various reasons why loan applications are being disapproved.
Here are the 10 main reasons that might cause your loan application to be declined:
Failure to submit pre-qualifying requirements.
In applying for any loans, you need to provide the needed requirements. Failure to do so can surely compromise the transaction and may lead to disapproval of your loan application.
Not resolving bad credit.
Bad credits reflects bad paying habits. Nobody will ever lend any amount without the assurance that you will be able to pay it on time.
Doing a research about the company background and some information about people who already had their loan approved in a certain financing companies may help you get a positive result.
Error in credit report.
Not declaring or not disclosing about your credit history may lead to denial of loan. The finance companies has a wide network and they are using every bit of information to check if you are really worth they trust. If you fail to provide the information they needed, your loan application could be declined.
Thinness of credit file.
Good credit records can be useful in dealing with loan applications. The more good credit transactions you have, the better. It will speak for you and get the loan you wish if you have enough good transactions from various credit or loan company.
Having too much debt.
One thing lenders look at when they’re reviewing loan applications is your debt-to-income ratio. If your monthly salary could not balance well with your debts, you are most likely to be declined of your loan application.
OFWs who are availing loans can be disapproved due to the following reasons:
In order to have a successful loan application, you need to consider the above-mentioned points to make sure that you would get the approval for your loan.
Dominador Say, undersecretary of the Department of Labor and Employment (DOLE), said that talks are underway with Chinese embassy officials on this possibility. China’s five major cities, including Beijing, Shanghai and Xiamen will soon be the destination for Filipino domestic workers who are seeking higher income.