Although there is a credit limit, what is the reason why the overall score is insufficient after application?

What causes a weak credit score?

1. Personal reasons:

There is a bad credit record in the personal credit report: there has been an overdue loan or there is a bad credit record;ofw loan without ccsl if the loan platform fails to repay the loan in time, there are overdue loans, and there are more than one, resulting in multiple loans in the borrower's credit report If there is an overdue record, the borrower's credit will become bad, and subsequent loan applications will be rejected.

There are too many loans on other platforms (multiple loans): Every time you borrow a loan from a credit reporting platform, a loan record will be left in the credit reporting loan record.personal loan calculator Some of these platforms will have an additional record every time you borrow, and if If there are too many loan records, the borrower's credit report will become confusing. In addition, every time you apply for a loan, the corresponding inquiry record will also be displayed in the inquiry record, which will also make the borrower's credit score worse. This directly leads to a lower score and indirectly leads to loan rejection.

The personal debt ratio is too high: The debt ratio refers to the ratio of personal liabilities to total assets.student loan A high debt ratio proves that your repayment ability is not strong. If the ratio of personal monthly income expenditure to income is too high, if the repayment ability expenditure is too large, it is very likely that the loan will be rejected. For example, if you apply for a loan from a bank, and the bank checks that your debt ratio exceeds 50%, your debt ratio is too high, and the money you can repay to the bank will be very little, which exceeds your repayment ability; your personal debt ratio cannot be too high. High. If the loan applicant's debt ratio is too high, it will directly lead to a decrease in repayment ability, and the decrease in repayment ability may cause the loan to be overdue, and it is easy to be identified as a high-risk customer by the bank. When the risk of loan defaults increases, financial institutions will be reluctant to lend money to users.

2. Platform reasons:

It may be because the loan platform’s approval process has become more stringent and the loan threshold has increased. Or it may be caused by the individual using the platform too frequently. Too often gives the platform the impression that you are extremely short of money, thus affecting the success rate of your loan application.

The total credit limit is too high: Supervision has set a maximum limit for single-family loans and requires each lending institution to grant credit to borrowers based on a rigid diminishing principle. If the loan amount the borrower wants exceeds the remaining available credit limit, the loan will not be processed because the available credit limit is insufficient. To put it simply, there is not much loan limit in the capital pool. If there is no water, naturally there will be no fish.

It should be noted that once a personal credit score is insufficient due to a bad credit record, the individual will not be able to apply for a loan normally until the credit score is restored.

What should I do if my personal comprehensive credit score is insufficient?

1. Maintain personal credit through formal channels and methods:

Reduce the frequency of personal credit inquiries, try to settle other small loans, reduce the number of loans, and repay any overdue loans first. If there are other bad records, first ask professionals how to resolve them and make reasonable plans based on appropriate plans.

2. Maintain job stability and reduce debt:

For lending institutions, people with unstable jobs and low incomes are easily rejected, because lending institutions will consider it risky to lend money to such people;

If the debt ratio is high, as long as part of the loan is paid off in advance, the debt ratio can be effectively reduced. After the debt ratio is reduced, the user can apply for a loan normally. As long as the personal credit report is good and the user has the ability to repay the principal and interest, there is a certain probability that the user can pass the loan review if he applies for a loan again. Individuals can control the level of their debt ratio by themselves. If they apply for fewer loans, the debt ratio will naturally decrease.

3. Temporarily suspend loan applications:

If your personal credit score is judged to be insufficient, do not immediately apply for a loan again. From now on, do not apply for bank credit products. You can be patient for a period of time and wait half a year to a year before applying for a loan.