Credit rejection despite good credit

What happened! A loan was applied for and it was refused. The Credit Bureau query was impeccable, no entries nothing. Many customers are really shocked. In addition, loan seekers should know that the good Credit Bureau is the tip of the scales of creditworthiness, but is not completely decisive for a loan approval. Can an identical name be the cause? Did people get confused? In most cases, however, this is not the reason for a loan refusal despite good credit. Read more about what you can do.

The loan rejection despite good Credit Bureau – the prospects

The loan rejection despite good Credit Bureau - the prospects

Before banks approve a loan, they not only check the Credit Bureau but also the customer’s income. Not only income, but also the permanent job is put to the test. A loan seeker must have a sufficiently high and regular income to be creditworthy. Unemployment benefits or Hartz IV benefits do not fall into this pattern, these funds are state benefits, they are not attachable and banks do not recognize them as income. The same applies to child benefit and parental allowance.

The loan refusal despite good Credit Bureau can also have arisen from insufficient income. This is not just about repaying the loan, the customer must also be able to keep a certain amount for his living expenses. For this purpose, the bank will draw up a budget that shows how the income and expenses are. If the two items are in a good relationship, a loan could be granted.

A loan can be rejected despite good credit if the customer has sufficient income but still needs to service other loans. That alone does not have to lead to rejection, but the loan amount, the installment amount and the term of these loans play a role. After all, a bank wants their money back. If there are restrictions in the customer’s life style due to existing loans, a loan rejection also follows despite good credit.

With a loan on the outside, not only unemployed or Hartz IV recipients remain. Self-employed persons and freelancers also find it difficult to obtain a loan. It is the fluctuating income situation that shows no stability. This is too uncertain for the bank. If, on the other hand, you take a doctor who is also self-employed and who has a firm customer base, the credit situation is different. A loan is approved on the basis of his job profile alone.

A loan rejection despite good credit can also occur if the customer receives sick pay. The bank assumes that sickness benefit is drawn so that the loan seeker does not have a simple cold, but rather a serious illness. This then raises the question of whether the customer can work again after the end of sickness benefits or if unemployment occurs. Disability with a pension is also a reason for exclusion, because nobody can live on this pension.

If a loan is rejected despite a good Credit Bureau, the overdraft facility over a financial bottleneck often helps some loan seekers. If the bank has not yet set it up, the customer could apply for it. If his account looks good, ie if there are no payment problems, the bank could approve a overdraft facility. However, the overdraft facility is one of the most expensive loans. It should only be used for short-term use.

What is seductive about a disposition is that it is easy to apply for and easy to use. There you can see something you have wanted to buy for a long time and now it is so cheap. The account is empty, the salary will come in a few days, but the overdraft facility is there. This should also not be a problem if the amount used is paid again at the latest when the salary is received. Quite a few customers got into a debt trap due to the overdraft facility. If you look at the interest level with permanent use, there are quite a few expenses.

The credit protection

The credit protection

If the income is too low, naming a guarantor can be an option for a loan rejection despite good credit. However, the loan seeker should still know whether he can pay the installments. It is not enough to name a guarantor and then let him continue to pay the loan. The guarantee can be a risky thing for the guarantor. The joint and several guarantee is a risky business for the guarantor.

The borrower can no longer pay, he does not have to go through any legal instances, the guarantor has to continue paying the loan. The bank does not have to carry out time-consuming dunning procedures. The borrower as well as the guarantor is responsible for the loan. Both should know that. The guarantor must also be financially able to continue paying in the event of a loan default.

If a loan is rejected despite a good Credit Bureau, a co-applicant can also defuse the situation. He is also responsible for the loan repayment. If the customer no longer pays, the co-applicant must do so. The partner often signs here, but he must also have his own income.


A loan rejection despite a good Credit Bureau can also come about if the loan seeker has a temporary employment contract, if he is on a trial period or is employed as a temporary worker. The loan seeker should know that banks have internal rules in addition to their obvious conditions. This could include, for example, another loan that is paid to the same bank. If this credit reduces the customer’s creditworthiness, this could also be a reason for rejection.

The sufficiently high income depends on the attachability. If the income is reduced by the loan that is already running, the loan is rejected. Even with a temporary employment contract, the bank sees no security for their money. The customer does not know what will come after the time limit and neither does the bank. That also gives a loan rejection despite good Credit Bureau.

A loan seeker needs to know that if the complete creditworthiness framework is in order, the bank approves a loan. If the house bank refuses the loan, the customer can also look at the direct banks on the Internet. The credit conditions there are often not so rigid. If the customer has found a provider, his focus should not be on the low interest rate. Free special repayments are also important. Especially for the customer who receives bonuses or special payments from the employer every year. He could deposit them on his loan and he would be paid faster.

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