Why Was Your Loan Rejected by Digido?
If you find yourself in need of urgent funds, you may consider applying for a personal loan as a practical solution. However, it can be disheartening when your loan application is rejected by Digido. Don’t fret though, as this rejection could serve as a valuable lesson to help you address potential red flags in your financial situation. Understanding the reasons behind loan rejections might increase your chances of getting approved for your next personal loan application.
Loan type
Short termFor a period of
728 daysRate ()
365.00% / yearLoan amount
25000 ₱Approval in
5 minutesFirst loan free
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Loan type
Short termFor a period of
180 daysRate ()
0.00% / monthLoan amount
20000 ₱Approval in
5 minutesFirst loan free
no
Loan type
Short termFor a period of
180 daysRate ()
0.00% / monthLoan amount
25000 ₱Approval in
5 minutesFirst loan free
no
Loan type
Short termFor a period of
180 daysRate ()
0.00% / dayLoan amount
25000 ₱Approval in
15 minutesFirst loan free
no
Loan type
Short termFor a period of
180 daysRate ()
0.00% / dayLoan amount
25000 ₱Approval in
15 minutesFirst loan free
noCommon Reasons Why Your Loan Keeps Getting Rejected
Bad Credit Score
Your credit score reflects your repayment and borrowing activities. Banks view timely payments and an absence of arrears within the past twelve months as positive indicators. However, if you have a history of late payments or, worse, loan defaults, you may be considered a high-risk borrower and even added to a blacklist.
Excessive Loan Commitments
If the bank observes that you have taken on too many loans, they may be hesitant to approve another one. They will assess your existing loan obligations, such as car and house repayments, personal loans, and credit card dues. While each bank may have different criteria for determining excessive commitments, a general rule of thumb is to keep your monthly repayments below sixty percent of your net salary.
Lack of Credit History
Having a bad credit history can harm your loan application, but having no credit history can be equally problematic. While it’s not necessarily a negative thing to lack experience with credit cards or loans, banks need some way to evaluate your reliability as a borrower. A track record of timely repayments demonstrates your commitment and reliability. However, some banks may be willing to overlook the absence of credit history and offer a smaller loan amount with higher interest.
Insufficient Income
Banks typically have minimum income requirements for loan applications, and some also set internal limits on borrowing based on income levels. These thresholds vary from one bank to another. Additionally, banks may be less inclined to consider commissions as part of your salary when determining eligibility. If a significant portion of your income comes from sales commissions, you may encounter difficulties in loan approval. It’s advisable to discuss potential hurdles in your application with your bank representative, as they have experience with approval rates and success probabilities. If your salary is on the lower end, other banks may still provide loans, but at a higher interest rate.
What Can You Do If Your Loan Application Has Been Turned Down?
It could be a single major concern or a combination of factors that led to your loan rejection. Understanding the underlying issue is crucial, so it’s recommended to reach out to the bank directly for an explanation. However, not all bank officers may be forthcoming with detailed explanations. Nonetheless, don’t lose hope and assume it’s the end of the road for you.
Apply at Another Bank
Each bank has its own unique way of defining and assessing creditworthiness. Therefore, if one bank rejects your loan application, it doesn’t mean that others will do the same. Consider applying at different banks as they may be more receptive to your financial circumstances. They might have loan products tailored to better match your situation.
Be Patient and Improve Your Credit Score
Obtaining your personal credit report is a wise move. Review the details carefully and look for any discrepancies. If you find any, contact the relevant bank to seek resolution and clarification promptly.
Seek a Loan from a Trusted Lender
If traditional banks consistently reject your personal loan applications, you can explore the option of obtaining a loan from a licensed lender. These money lenders legally provide loans but do not offer other banking services. Since their primary business is lending, they tend to be more flexible in approving loan applications. However, it’s essential to remember that licensed moneylenders charge higher interest rates compared to banks. Their interest rates typically range from twelve to eighteen percent, while banks may offer loans with rates as low as three to four percent. While it’s relatively easier to secure a loan from a licensed moneylender, it comes at a higher cost.
Now that you have a better understanding of the reasons behind loan rejections and the steps to address loan problems, you can apply this knowledge to your next search for a personal loan. Remember, you don’t need to approach every bank or licensed moneylender out there; instead, conduct thorough research and choose the best option for your needs. We wish you the best of luck in your financial journey!
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Loan type
Short termFor a period of
180 daysRate ()
0.00% / monthLoan amount
25000 ₱Approval in
5 minutesFirst loan free
no
Loan type
Short termFor a period of
728 daysRate ()
365.00% / yearLoan amount
25000 ₱Approval in
5 minutesFirst loan free
no
Loan type
Short termFor a period of
180 daysRate ()
0.00% / monthLoan amount
20000 ₱Approval in
5 minutesFirst loan free
no
Loan type
Short termFor a period of
180 daysRate ()
0.00% / monthLoan amount
25000 ₱Approval in
5 minutesFirst loan free
no
Loan type
Short termFor a period of
120 daysRate ()
0.00% / monthLoan amount
25000 ₱Approval in
5 minutesFirst loan free
no
Loan type
Short termFor a period of
180 daysRate ()
0.00% / dayLoan amount
25000 ₱Approval in
15 minutesFirst loan free
no
Loan type
Short termFor a period of
180 daysRate ()
0.00% / dayLoan amount
25000 ₱Approval in
15 minutesFirst loan free
no