If you need instant financial assistance, it is extremely convenient to apply for a loan or instant credit online. It only takes a few minutes to apply and the money reaches your account the same day. However, the application can also result in an unpleasant negative response. This time we will discuss the main reasons why you may or may not get a credit or loan.
You are late in paying your outstanding obligations
When applying for a loan, remember that your entire credit history will be evaluated, so if you have debts with other companies, there is a good chance that the loan will not be granted. Not only do you owe debts on loans, leases or short-term loans from other companies – but all debts you have, so if you are late for your phone bill or garbage disposal, it will make it harder to get loans.
Also, keep in mind that your entire credit history is appreciated, so even if you currently have all the debts you have covered, but until recently, you may not be eligible for a loan. And debt data is kept for up to 10 years from the date the debt is paid off.
Your income is not stable
To qualify for a loan, official, stable income from the last 4 months is assessed. Therefore, this may hinder access to loans for seasonal workers, informal workers or part-salary earners.
You have a lot of liabilities at other financial institutions
Even if you have a steady income every month, you don’t have any overdue payments at other companies – you may not be able to get a loan because of your excessive liabilities. Pursuant to the Consumer Credit Law of the Republic of Lithuania, a person may incur a financial obligation of up to 40% of his monthly income. Before applying for a new credit, evaluate your existing obligations.
You do not have a valid ID
In order to qualify for a loan, you must have a valid identity document: passport or ID card (driving license is not appropriate in this case). Therefore, if your identity document has expired, you will not be able to obtain a loan.
Your declared place of residence outside Lithuania
Given the high volume of emigration, it is not surprising that a large number of those who choose to live abroad declare their departure abroad, which may make it difficult to obtain a loan in Lithuania. Before applying, be sure to check if the company of your choice provides services to persons whose declared place of residence is outside Lithuania.
You did not make a joint decision with your spouse
As of February 1, 2016, financial services companies must assess the financial situation of both spouses in order to qualify for a married person loan. Such a solvency assessment requires the consent of both spouses, so if you are filing an application and your spouse does not give consent, you will not be able to evaluate your loan application. There is a need for consensus within the family.
There may be more reasons why a loan may not be granted. Remember, each financial services company evaluates the risks before approving each application. Businesses are interested in getting their loans back on time, without delay. Therefore, the solvency of each applicant is assessed individually.