Have you seen your personal credit application rejected? It is important that you understand why this happened so as not to repeat the same mistakes in a next order.
First of all, you should understand how financial institutions determine whether to grant a loan or not. Then, see below, what are the various reasons that can cause a financial institution to deny you credit.
1. Your name is on the “black list”
The first step is to confirm that your name is on the Credit Responsibility Center, popularly known as the “Banco de Portugal blacklist”. In this list, you can find the names of all people who have financial defaults. If your name is on the list, no bank in Portugal will be able to grant you a loan, at least until you correct those defaults. If this is the case for you, consider settling the arrears you owe and, after that, apply for credit again.
2. Has a very high effort rate
Another situation that commonly leads to the rejection of personal credit is the fact that there is too much effort. Through this aspect, banks ensure that no one is financed beyond their means. The healthiest, financially speaking, would be that the loan installments do not exceed 15% of your income. As a rule, when the monthly installments of your credits exceed 30% of your earnings, the request for access to personal credit is declined. Do the math and see if this was the factor that weighed in the decision
3. Provided incorrect data
In order to get their credit application approved, some people use third party data or put outdated information on the forms, hoping that the banking institution will not notice the inconsistency between the data. This is a bad move, since the institution always does its own analysis of the candidate and, when discovering that information such as income or address is out of step with the reality, the trust that is deposited in him declines and the most likely is not get credit.
4. You don’t have a stable professional situation
Much of the rejected personal credits are due to the lack of a stable professional situation. You must be prepared for some aspects of your life to influence obtaining credit, such as your employment relationship. Public sector workers, for example, tend to have greater job stability, which makes them, at this point, considered more likely candidates to obtain credit.
5. Your profile does not match the credit you requested
Finally, you should know that it may not be your fault or your current financial situation. Sometimes your application can be rejected simply because your profile does not fit the profile of the financial institution or the type of credit you have requested. You should also consider that not all financial institutions use the same model for assessing loan applicants, that is, it was rejected by one institution, but it may well be able to be accepted by another.
So, if you didn’t get personal credit approval, don’t give up. You can always try to improve some aspects mentioned here and then try again to obtain credit from another financial institution. If you decide to have an intermediary at your side, the whole process will be facilitated and you will get approval quickly.