Refused credit application? Here's what banks are really looking at and what actions need to be taken to bounce back.
Being denied credit can be a real disappointment, especially when a project or urgent need depends on this funding.
However, a refusal is not an end in itself. It simply reflects specific criteria that banks analyse. Here are the most common reasons for a loan refusal and the solutions to reverse the situation.
Why do banks refuse a loan?
When a bank analyses your file, it consults your debt collection register. The presence of one or more registrations, even if they have been settled, remains a warning signal. Indeed, a debt collection that is settled but still visible can be enough to block your credit.
It is therefore strongly advised, once your debt enforcement(s) have been paid, to request the deletion of the registration directly from the competent office.
Your CRIF score is too low
The CRIF is a solvency database that banks consult in addition to the ZEK and the debt collection register. It brings together a multitude of information: address history, late payments, unfulfilled commitments, etc.
An unpaid invoice from a telecom operator or a gym, for example, can be sent to a collection agency (EOS, Paycoach, etc.), which can significantly lower your score.
How can you improve your situation?
- Pay off the debts involved.
- Ask creditors to remove negative registrations with the CRIF.
- Check that your personal information is accurate, but be careful, too frequent changes of address can also affect your score.
Negative registrations in the ZEK
The ZEK (Central Credit Office) contains all your credit, leasing and credit card history. Irregular payments, card blocking or fraud can leave negative marks that hinder your future applications.
Some entries may be corrected if they are unwarranted or changed after certain years. This is still a rather technical area, but Milenia can inform you and guide you through the steps to follow.
Income deemed insufficient
A loan may also be refused because your budget is considered too tight. But be careful: not all banks calculate the budget in the same way, and some organizations sometimes miss important documents in their evaluation.
At Milenia, we offer you a free assessment of your situation. Thanks to our expertise and our banking partnerships, we know how to present your file to obtain the best credit offer.
Beware of "miracle" credit scams
Have you come across an ad promising "fast credit without proof" or an "unbeatable rate"? In 99% of cases, it is a scam. Never pay fees upfront or hand over your data to questionable sites.
With Milenia, there are no hidden fees and no commitments: a free evaluation with no surprises.
How Milenia can help you after a rejection
We analyse your situation free of charge, optimise your budget, and find the right solution for your profile. If you have lawsuits or ZEK registrations, we will help you clean up your file.
If in doubt, do not hesitate to contact us! We're here for you.