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When we apply for credit in the financial market, we already know that we will have to wait those crucial hours while the company carries out the credit analysis.
Therefore, we do not always receive the answer we wanted or needed.
And when we come across the credit analysis denied we are left wondering why.
If you have already experienced this, or are planning to apply for some financial service, continue reading this article.
In general, we will address the main reasons for your credit analysis have been denied. Check it out!
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What is credit analysis?
It is a verification that the institution makes of the person who requested one of its services.
Therefore, some analyses can occur in just a few hours, while others can take days between the date of the request and the response to the potential client.
In this process, various aspects of the client's financial behavior are observed, which will lead to the final decision, which may be negative or positive.
Therefore, check out the main causes of a credit analysis denied.
1. Bad name
In other articles of ours, we have already highlighted that having a clean record is no guarantee of credit in the market.
However, having a bad credit rating is a guarantee that your request will be denied, unless you are retired, a pensioner, or a public servant.
In this sense, if you are thinking about taking out a loan or credit card while in default, try to resolve this situation.
For example, on the Serasa website you can check your CPF.
Additionally, you can access debts in your name and pay them with up to 90% discount on Clean Name Fair.
2. Proof of Income
Brazil's economic situation has worsened significantly during the pandemic.
As a result, many people have lost their sole or largest source of income.
Most people need credit to start over; to rebuild a dream, but the lack of proof of income has been a barrier.
This is because banks have banned credit at this time.
They are acting more cautiously even with active and good paying customers.
This is done to ensure that any financial losses due to non-payments are covered until the situation improves.
Therefore, not having proof of income, property or car to guarantee payment of the debt can lead to a credit analysis denied.
3. Providing incorrect data
It seems simple, but it can get in the way.
Many people end up providing outdated or incorrect data when requesting a financial service.
Therefore, the institution may deny credit due to inconsistencies in the information.
4. Low score
In addition to the options mentioned above, having a good credit score can be a game changer.
This is because it is what defines whether or not you are a good payer and your situation in the financial market.
Therefore, the score ranges from zero to one thousand points, and is determined as follows:
- 0 to 300 points = high risk of default.
- 300 to 700 points = medium risk of default.
- 700 to 1,000 points = low risk of default.
If you still have questions about credit score, you can read the article What is a credit score? Understand it quickly.
You can check your credit score on the Score Serasa website. Finally, pay your bills on time and be aware of the situations highlighted in the text to avoid your credit analysis it is denied.
