That one good day you gathered all your documents to apply for an online loan from your trusted lender and got rejected straight away. You may have encountered such events in the past a lot of times that ultimately turned your good days into bad days with a mark of “REJECTION”.

Understanding the root cause behind constant denial in the first place is the idea here in order to brighten the chances of your online loan applications being approved the next time you consult an online lender. Here are some of the most obvious reasons you need to look into:

Reason#1: You’re Overburdened with Debt

Now this one is pretty obvious and yet a valid reason for your online lender to reject your loan application. Upon applying for an online loan, the lending institutions determine your repayment capacity and look into your preceding line of credit in order to shape the entire picture. Your online lender will look for:

  • Any existing loans you are paying;
  • More than one online loans you may have taken in the past 3 months (90 days);
  • If you intend to use this online loan (the one you’re applying for) for repaying another loan.

These reasons are enough and justifiable for any online lender to reject your loan application.

Reason#2: You’re Making A Rush

Every time you apply for an online loan, your credit history is evaluated. The financial records even tell your online lender the attempts you’ve made in the past. If you’re being rejected a lot of times, your prospective online lender gets a hint that you are not eligible to repay a loan and this is the reason of your past rejections.

Failed attempts also decrease your credit score and thus make you ineligible to apply for any sort of financing. To overcome this issue, you must do your homework properly and compare your possible options ahead.

Reason#3: An Uneven Track of Employment

No one in the world would finance you if you don’t have any definite and constant source of income. It is a core principle of many online lenders that is non-negotiable at all costs. If your employment history is not quite stable, your online lender will raise a lot of questions to you and most of the times this is a systematic check, meaning that upon not fulfilling this requirement, you can’t proceed with the rest of the formalities to apply for online loans.

(Here’s one tip: If you are living on welfare or a major part of your expenses are met with any sort of welfare funds, it is most likely that the online lender will reject your application.)

Reason#4: Your Usual Mode of Receiving Funds is “CASH”

Receiving funds in cash leaves no traces behind of you being paid. Funds transfer, however, keeps a track of all your inflows and outflows. And your bank statements are clear evidences that how much you’ve received and how much you’ve paid in the due course. Even if your salary or other source of income is handed over to you in the form of hard cash, try getting it credited to your bank account.

Reason#5: You Do Not Fit In The Least of Requirements

Requirement thresholds such as geographical location, age bracket, number of dependants, and identity proof are hardcore requirements of any online lending institution. So make sure that you fit in these requirements next time you apply for an online loan. All these requirements are readily available on their websites for your convenience.


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