Intro
If you’re applying for an online personal loan in Ontario, you might want to know six common reasons why loan applications may not get approved by online installment lenders. These reasons usually have to do with online installment lenders performing a credit risk analysis and evaluating your repayment capability. Applicants who are deemed to present too high of a credit risk may not have their applications approved.
Reason #1: You Do Not Meet the Eligibility Requirements
Most online installment lenders have several requirements that applicants must meet, which may include the following:
- You must be at least 18 years of age or older.
- You must be a Canadian citizen or permanent resident.
- You must provide proof of a consistent income.
- You must have a permanent address.
- You must have a valid Canadian bank account, which has been active for at least 90 days.
Adhering to the above requirements will help ensure that your application is not filtered out.
Reason #2: You Have Many Ongoing/Active Payday Loans/Short-Term Loans
Having many payday loans/short-term loans on the go indicates that you may have severely limited ability to repay a loan and therefore present a high credit risk to prospective online installment lenders. Therefore, make sure you are not financially overextended in terms of your current repayment obligations before you take out a no credit score loan online.
Reason #3: You Have a History of Bankruptcy or Foreclosure
A history of bankruptcy or foreclosure signals that you may be a high-risk borrower. While it may not be an automatic disqualifier, it may present you as a high-risk borrower to most online installment lenders and may make it more difficult to qualify for no credit score loans in Ontario.
Reason #4: Unstable Income
A lack of a stable income may indicate a lack of ability to repay your loan. The ability to provide proof of a consistent income is usually a necessary requirement or criterion by which most online installment lenders evaluate an applicant’s suitability. Therefore, make sure you have a stable income before you take out a loan from a given online lender.
Reason #5: Incorrectly Filled Out Application
If you provide incomplete or invalid information on your application, your application may get rejected on those grounds. Therefore, make sure you fill out your application with complete and correct information. Otherwise, your loan application is unlikely to get approved or funded. We use advanced encryption technology to protect any personal information you provide on your application.
Reason #6: Excessive Debt Levels
Excessive debt levels relative to income indicate a lack of financial stability and likely an inability to repay your loan. Therefore, it is important to ensure that you are not overburdened with existing debt that may limit or prevent your ability to repay a new loan. For more information on debt-to-income ratios (DTI) and related matters, consult the article “What Is a Debt-to-Income Ratio (DTI)?”
How to Avoid Having Your Loan Application Rejected
To avoid having your loan application rejected, adhere to the lender’s minimum requirements for applicants, including the minimum age requirement, the income requirement, and so on, fill out the application fully and correctly, and minimize your ongoing/active payday loans and short-term loans and NSF transactions.
Conclusion
If you need to cover urgent expenses, apply for a personal loan online via OntarioCASH. It’s never been easier to apply or qualify. To monitor your credit score and automatically catch errors on your credit report, sign up for Credit Verify!
