Can I submit a new loan application if the previous one has been denied?
Loan refused: what to do and how to behave if a loan application is denied by the bank or financial institution. The loan situation in Italy is constantly improving after years of great difficulty, during which the credit sector companies have considerably restricted the criteria for access to loans.
However, if the credit crunch of past years has significantly eased, banking and financial policy continues to be marked by considerable prudence. An attitude that derives in particular from the large amount of impaired loans that weighs on the sector, that is, those loans which have not been honored by customers, due to difficulties which have arisen. It can thus happen that a loan request is rejected by the institution to which the user had decided to apply. What happens in these cases? Is it possible to apply for a loan again and, if so, should it be addressed to the same person or would it be advisable to look for alternatives?
What to do if the first loan application was rejected?
As we have already mentioned, it is not uncommon for an initial loan application to be rejected by the bank or the finance company that had been asked to obtain a loan. In this case, you can certainly try to submit a second request, but bearing in mind that the bank to which you turned in the first instance would be immediately discarded.
In this regard, it should be remembered that each company in the credit sector adopts its own personal policy, in which the criteria for accepting requests can widen or shrink on the basis of completely autonomous assessments. It can thus happen that the exact same application is rejected by a lender, to be accepted by another instead.
What can be the reasons for the refusal?
Before making a second request to another party, however, the consumer should take care to inquire about the real reasons that prompted the first bank or financial institution to reject the application. In this way, in fact, one can try to remedy and perhaps think of alternative ways that present a greater probability of success.
In this regard, it can be said that among the reasons given by the companies in the credit sector for not granting the reduced financing, the most frequent are those relating to the applicant’s work situation, a troubled history in the relationship with the banks or the fact of being already at the taken with a loan whose monthly installments are being paid.
The first case is increasingly frequent in a country like ours struggling with a real revolution in the world of work. The Jobs Act, joining the laws passed previously, has in fact eliminated the traditional fixed position and opened the way to an increasingly widespread precariousness. The lack of a permanent contract consequently makes the security of having a salary at the end of the month to lean on to pay the installment of a loan more and more uncertain.
Even more problematic for banks and financials is the issue of reporting the applicant’s name to one of the many lists of bad payers present in Italy. Those who have created problems or even not honored the repayment commitment signed at the contractual level during a previous loan cannot naturally find a hearing in a sector that requires security to be able to lend money. A security that would be affected even if the applicant, despite having a calming situation in working terms, already has another loan in place. In this case, in fact, it may eventually find it difficult to honor both loans, an event that insurance companies must take into due account.