3 things you need to know when rejecting the loan application.
Guarantee, creditworthiness, credit volume – we explain what you have to look out for.
- Find a guarantor : In the case of a guarantee, a third person guarantees the loan. This can be particularly necessary if you are still in the trial period or if you are self-employed and do not yet have a secure income. For a bank, lending is a risk factor if the loan is limited to just one person. If this person’s income runs dry, there is a credit default. Many self-employed or sole proprietors turn to a family member. From the bank’s perspective, this can make the application more attractive, especially if the other person has a separate income. There is then less risk for the bank.
- Check your private credit bureau : If a negative credit rating of the company or the person is given as a reason for rejection, you should ask credit bureau to provide you with free information. Check whether the negative data stored about you are really correct and have incorrect entries deleted immediately. For a bank, there is a connection between the private financial situation of the entrepreneur and the company, even if it is a corporation like GmbH / AG / UG. If something an entrepreneur or manager has recently gone through private bankruptcy, the bank sees a risk to the company’s finances. The importance of this connection between private and corporate credit was explained elsewhere in our blog.
- Reduce your loan amount : If the bank believes that your current income is insufficient to repay the loan you want, you should check whether you can also cope with a smaller loan. Therefore, adjust your wishes to your income or your salary.
If you want to know what your creditworthiness is like and how you can improve your creditworthiness, you should check your creditworthiness free of charge on the bank score. If your data is incorrect, you can correct it there directly. If you need financing, you will receive an offer online that matches your credit rating. Our partners will be happy to help you with financing.