Reasons for refusal of a microloan

When applying for a microloan, the borrower does not always get a positive result after the manager of the payday advance app reviews the application. 

Under what circumstances might a consumer need a microloan?

  • Urgently need money to buy medicines for treatment. Medications cost money, and we don’t always have enough of our own money to purchase them.
  • Money to repair household appliances. The warranty on your vacuum cleaner, refrigerator, or microwave has expired, and they suddenly failed? You can get money for home appliance repair with an online lending service or a special app.
  • Vacation Money. Are you tired and need money for a vacation? Apply for a microloan to your card as soon as possible with an online application.
  • For any other goods and services you need right here and now, managers never ask you what exactly you are borrowing money for.

When getting a microloan from a microfinance organization, make sure you have a good credit history. Information comes from various sources: banks, insurance and leasing companies, microfinance organizations and other financial institutions. A borrower can borrow money through an online application. The disbursement of funds usually occurs with a positive credit history.

Why can credit be refused?

When you fill out an online application on the company’s website or app, you provide certain personal information. After filling out the application, the potential consumer who wants to borrow money is assessed. The data is checked with the help of automated algorithms. More information on the website: The manager then takes the borrower’s application for review. It takes up to 10 minutes to verify the consumer’s information. Therefore, the issuance of the loan is literally 15 minutes of your time.

The refusal of credit can come after checking the information, if it is:

  • invalid information;
  • not filled out correctly;
  • the borrower has no sources of income (official or unofficial).

Usually, managers of microfinance organizations don’t pay attention to a borrower’s credit history. By paying back loans on time and making timely payments the consumer can only improve his/her credit history. This information will be displayed in a certain database. So, if you want to make your credit history positive – repay your loans and microloans on time. At the moment, there are many excellent companies that you can use to get a loan.