Why banks first approve a loan, and then refuse?

Imagine the situation when you submit an application for credit, waiting for an answer from the bank and get a cherished approval message. But then, when you begin to deal with the issues of document fees or directly contact the bank, the manager reports a refusal to issue a loan.

If the situation is familiar to you, we suggest read our article in which we will reveal the reasons for this situation. Because banks have the right not to reveal the reasons for refusing, which leaves the client in bewilderment.

At least once in life, the Bank’s client received a newsletter message with the credit approval information. More often such SMS comes former borrowers or credit card holders. But cases where a person, having only a debit card, receives a prior approval of the loan is not small.

Therefore, rely on such newsletters as one hundred percent approval is not necessary. The final decision will be made after considering the borrower for all requirements of the bank.

Preliminary approval is some surface check of your data that you provide a jar on your own. This does not include certificates of income, documents confirming the registration of a citizen of the territory of the Russian Federation, information on existing loans.

Therefore, after a thorough check of information and conformity written by you with reality, the loan solution is made. It is at this stage that the loans refuse to those who have already received preliminary approval.

Next, we will look at the reasons for the refusal you may encounter:

This is just a small part of the reasons for the refusal that we voiced you. It happens that the lender looks at the psychological state of the client and if any disorders may refuse the loan.

And some banks take into account the fact of multiple early repayments of past loans, which seems to them not profitable, since the amount of overpayment decreases that it leads to a decrease in the profit of the financial and credit institution.

Upon receipt of preliminary approval on the loan, it is not necessary to rejoice ahead of time. Ahead of you is expected to check documents and communication with a bank employee. If the data in the application does not coincide with the information in real documents, then it will most likely be refusing. Therefore, be honest with the bank initially, feeding only reliable data.