Possible Reasons for Loan Rejection

Possible Reasons for Loan Rejection

Lenders have their parameters set and they adhere to those while evaluating credit applications. The reasons for rejecting your loan will be listed in your adverse action letter.The 6 most common reasons behind the rejection of credit application can be as follows:
1. Low credit score
2. Low income as compared to the size of loan applied
3. Inaccurate application details
4. Job instability
5. Number of pending loans too high
6. Not eligible based on age, nationality, education qualification (at times),etc.
If the reason for your loan rejection is not clear under any of these sections, then you can contact the lender to elaborate on the chosen reason.

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