Why Was Your Moneylender Loan Rejected?
October 21, 2022
Looking for a loan but was your moneylender loan rejected?
Your loan application may have been turned down for a number of reasons.
Before you give up on money lenders when your moneylender loan is rejected, you need to arm yourself with basic knowledge about what most money lenders look for in a borrower.
If you want to borrow money from a money lender, the loan application form is the first step in getting approved for a loan.
You must understand the guidelines and requirements of getting a loan from a money lender.
Reasons Why Your Loan Application Was Rejected
You may have applied for a loan and been rejected. Or you might have had your application approved but still not received the funds.
If you’re wondering why your loan application was rejected, there are a few things to consider.
Low Credit Score
Firstly, ensure that your credit score is high enough.
If it’s not, you may be wondering “how to check my credit score in Singapore?”. The good news is that it’s not very hard to improve your credit score.
Consider taking steps such as paying off your credit card bills on time to improve your score before applying for the loan.
You should also check the fine print of any documents you sign.
Most banks place more importance on your credit score than licensed money lenders.
Still, some lenders may require a minimum credit score before a borrower can apply for their loans. So take this into consideration before you even apply.
Another possible reason is: You do not have enough income to cover your repayment schedule.
Lenders require that applicants show at least two times their monthly income as a deposit in order to qualify for a loan.
If this amount is not available, then you will need to wait until before reapplying again. It can be with another lender who may have more flexibility when it comes to income requirements (but always check first).
If none of these options are available, then you could consider getting a guarantor who has an income that meets these criteria instead.
In general, licensed money lenders focus more on your income than credit score.
Inadequate Personal Information
Perhaps you didn’t provide enough information about yourself or your business during the initial application process. Or maybe you didn’t submit the required documents.
So the lender couldn’t determine if it could trust you or not.
Insufficient Credit Information
Your loan application can also be rejected because you did not provide enough details about your credit history.
There are a lot of things that money lenders need to know about borrowers before lending them money. And one of those things is their credit history.
The better your credit history is, the more likely it is that you will be approved for financing from a lender.
If you have little or no credit history to speak of, then it’s going to be harder to get a loan.
Bad Credit History
Your money lender will consider your credit history when making a decision to grant you a loan.
And you may wonder how to get a bank loan with bad credit in Singapore. Lenders will look at your credit score and assess how likely it is that you will repay them on time.
If you have a history of late payments or defaulting on loans, then it’s likely that your money lender will reject your application.
The only way around this is if you can offer something else in return: collateral.
If a money lender knows that it can take possession of something valuable if you don’t pay back the loan, then it may be willing to give its approval.
How To Avoid Being Rejected
You’ve been rejected by a money lender, and you want to know why. Well, we’re here to tell you that it’s not the end of the world.
We know how hard it is to get a loan and all of the hoops you have to jump through when applying for one. It’s no wonder that so many people get rejected.
The good news is that there are ways to avoid being rejected by your next lender if this happens again.
Here’s what we recommend:
1. Make Sure Your Application Is Detailed And Accurate
Don’t be afraid to provide more information than money lenders ask for.
In fact, if they ask for something specific, go above and beyond and provide them with even more information than they requested.
Your lender wants to see that you’re serious about getting a loan from them and will repay it.
2. Have A Plan Before Applying
Make sure you understand what you need the money for and how much you can afford to pay back.
Using a personal loan calculator in Singapore will help you calculate the amount you need and plan the loan application process more effectively.
That way, if something goes wrong with your application process, you’ll know better what steps to take the next time around.
3. Make Sure That All of Your Supporting Documentation Is Up To Date
When you apply for a personal loan with bad credit in Singapore, your lender will likely ask for various documents.
This is to confirm your identity, your employment history, and other information. Make sure that all of these documents are up to date and ready to go before applying.
This includes things like your NRIC, payslips, credit report, bank statements, and more. If something is missing or needs updating, take care of it right away so that it doesn’t delay the process.
4. Be Honest About Your Financial Situation
These include any debts or other issues that could affect your ability to pay back the loan on time.
If there’s anything else that could impact your ability to repay the loan on time, be upfront about these things as well (e.g. if your business is struggling).
How To Improve Your Chances Of Getting Your Loan Approved
If your moneylender loan was rejected, it’s important to know why.
While there’s no exact science to getting approved for a loan, here are some ways that can help increase your chances of approval.
1. Research The Lender You’re Applying To
Get to know the lender’s business practices and any previous complaints it may have received from customers.
If it has a lot of complaints or negative reviews, this could be a sign that it is not trustworthy or experienced.
2. Explain Your Situation And Why You Need The Loan Clearly
When you meet the lender face to face for the customary identity verification, share how much money you need, what it will be used for, why you are unable to get a traditional bank loan, etc.
This might increase the chances of your application getting approved.
3. Get A Stable Job With A Good Income
Having a stable job with a good income makes it easier for lenders to trust you.
They know that if something goes wrong they’ll be able to recover their losses from your paychecks rather than relying on your credit rating or personal assets.
4. Take Extra Care In Filling Out Forms And Providing Information Accurately
Ensure that everything in your application is accurate.
If you lie about something on your application such as your income or employment status, this could also result in rejection.
Your goal should be to ensure that everything gets done right.
Avoid Moneylender Loan Rejections Today
Moneylender loan rejected? Don’t despair. The complaint “moneylender loan rejected” is a common one.
It’s often not easy to predict whether you will get your loan approved with a certain amount. There are a few more reasons why this might happen though.
And one potential reason is that you don’t meet the requirements for borrowing money.
Ensure you follow our tips to increase your chances of getting a loan from money lenders in your neighbourhood.
Give Credit Thirty3, a trusted licensed money lender a try. We have some of the best rates in the business.