If you are looking to take out a loan, you should research about the factors that could deny you the chance of getting a loan. One crucial factor to consider is your credit score.
Having a good credit score in Singapore can ensure that you will be able to get the best interest rates for your credit card or loans. However, it is important to note that you can fail to secure a loan despite having a good credit score.
To ensure you are fully prepared, here are the top factors you should avoid when getting your loan application approved.
1. Incorrect or incomplete loan application
The information you provide on the loan application plays a significant role in determining your credibility value. Through the information you give, banks or licensed moneylenders will decide whether to offer or reject your loan application.
Your loan request can get rejected if you leave out vital personal or financial information. Thus, read and fill up the application thoroughly. If you forget to provide a copy of your salary certificate, your identification card, or submit an incomplete loan application form, you will be denied the chance to get an instant cash loan.
2. Income and debt
While some credit bureaus might not consider your employment status as a requirement, licensed moneylenders do. They will consider the amount of money that you earn every year along with your current total debt. The information you provide will be used to gauge your ability to repay the loan.
Therefore, you must provide accurate income and debt information. If a licensed moneylender or a bank detects dishonesty in the information that you provide, your loan request will be rejected.
3. Negative credit report
Despite having an excellent credit score, one negative credit report could potentially scare away licensed moneylenders. This shows that you are actively defaulting on your payments and debts, making you a risk for licensed moneylenders to issue loans or credit cards.
Hence, it’s highly important for you to ensure you’re financially stable enough to make your payments on time to avoid any negative credit reports. That way, you will have a better chance of getting your loan application approved.
4. Employment status
Another crucial factor that could cause your loan application to be rejected is your job status or employment stability. Licensed moneylenders in Singapore provide loans to individuals with a stable income or job. While switching jobs from time to time can be a good thing, doing so could dissuade licensed moneylenders from offering you a loan.
If you want to apply for a fast cash loan in Singapore in the future, you should stick to one employer for at least a year before applying. Even with a high paying job, securing a loan when you have not been employed for more than a year can be difficult.
Being turned down after a loan application can add frustration to your financial situation. However, doing the right things can ensure that your financial standing will improve and increase the chances of getting your loan approved. You should keep in mind that loan rejection is not the end of everything. Instead, check and rectify the reasons as to why your loan application was rejected.