5 reasons why your loan was declined

It’s absolutely heartbreaking to get a “no” when you so desperately need a “yes”, especially in time-sensitive cases where you urgently need cash.

And that’s why Irorun has curated 5 reasons why your loan can get declined. To prevent it from happening to you.

One common reason your loan may be declined is having a very low credit score, which is a blaring sign for two things — a new borrower or a loan defaulter, both of which can be risky to lend to. Your credit score shows how creditworthy you are, and when it sits in the lower range, it raises the question “Can I trust this borrower to pay back with ease?”

Having a very low credit score does not stand alone as a reason for a declined loan application but it could play a big role.

Lenders like Irorun endeavour to give fair treatment to all new and earnest borrowers. Read more on how to boost your credit score.

When you apply for a loan, your lender is always going to inquire about a source of income whether you have one or not. Lenders want their prospective borrowers to have a stable source of income as it shows that they will be able to pay back their loan on time.

An unstable source of income is a red flag to many lenders as it’s a sign that you may not be able to afford a loan at the moment.

Remember, a stable source of income doesn’t mean one source of income like a salary. It just means that your bank statement should reflect constant monthly cash inflow. This reduces your chance of having your loan declined.

A lack of a current and valid means of identification is another reason that your loan may be declined, as, without one, a lender has no means to verify your identity and as such cannot be sure that you are who you say you are.

Declining a loan application made without a current and valid ID is simply done to prevent fraud and identity theft as we can never be too careful. Therefore, a lack of proper identification increases your chances of getting a “no.”

Large loans are usually reserved for our loyal users who have proven to us numerous times, that they can not only be trusted but also afford to pay us back with ease. If you’re new to Irorun, and you apply for a large loan, there’s a high probability that your request will be declined.

Not to worry, here’s how you can get bigger loans with us in the future.

To be eligible for a loan some basic requirements are to be met. They include:

• Being of legal age to apply for a loan (18 years and above)
• Being a legal citizen of a country with a valid ID card
• Up-to-date bank statements or some form of financial record/verification.

Not meeting up with these requirements automatically puts you out of the running for a loan, you should ensure that before applying for a loan you meet these requirements, to avoid your loan being declined.

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For more clarification and assistance, reach out to us at support@irorun.com!