Applying for a loan or credit card is very easy, but getting the application approved is not. Banks and financial situations consider multiple factors and conduct various checks on applicants before they approve or reject any application. They want to be sure of the individual who they are lending money to.
Some of the reasons for denial of a loan or credit card are as follows:
These are some of the common reasons because of which requests for loan or credit card are rejected by banks and financial institutions. In case of home loans, there are other factors such as legal verification and property valuation that can get loan applications rejected.
Rejection of loan or credit cards can have a negative impact on your credit score and you might not get any loans or credit card in the future either. To prevent this, you must ensure that you pay your debts on time, have a stable employment and income, provide the correct documents and check the eligibility criteria of a product before applying for it.