Outlook Money
A good credit score is important, but it’s not the only factor lenders consider. Here’s why your loan application might get rejected despite a good credit score
Lenders look for borrowers with steady income. Lenders often view employment gaps or dependence on freelance income as red flags.
Even with a strong credit score, high existing debt can worry lenders. If most of your income goes to other loans, repayment can be tough.
Several credit card or loan applications in a short period of time may indicate financial distress. It could also be a warning sign for lenders.
A mismatch between your financial history and loan type can lead to rejection. For example applying for a large business loan with limited self-employment history.
Simple errors can cause your loan to fail, such as obsolete addresses or missing income documentation. Always re-examine your application.