How not to get a bank loan

There is no doubt that all of need money to survive and live well, and when money is not in the amounts we need it, we have to get credit. Asking for credit and loans will always be easy but getting credit itself may not be so easy due to a number of factors. In fact, it is not a good idea to ask for credit or a loan when you are not sure whether you will get it. That may fact spoil you chances of getting credit and loans in the future. The factors below if not sorted out early enough will with no doubt become a major stumbling block in your efforts to get credit from banks or other financial institutions . Credit defaults There are many people with so many loan defaults from a number of banks, this information is stored and with no doubt, your credit score will have to be effected. A poor credit score is normally a good reason for banks not to give you loans. Make sure you clear most of debts including those on credit cards for the banks to give you some trust with their money. Credit repayment methods You might be one of those guys who pay off their credit cards debts but still fail to get credit from the banks; this might be because of the poor way you repay your debts, that is to say, paying the debts but many days after the repayment date. Though some institution will go ahead to give you the money you need, most will have a lot of reservations before giving you credit . Belonging to borrowing groups Some would wonder if belonging to a borrowing group can be a good reason not to get credit and loans when they need them, but the answer for this is a plain yes, this mainly apply to people who apply for loans as groups and not as individuals. You as a member of the group will appear in the credit reference bureaus with links from other members. This means that if one of the members in your group is fails to pay, the information will appear in your credit profile and you will be negatively affected. Too many loans This should however not be a factor to scare off some one who wants to apply for a loan or credit, having to many loans will not affect you in nay way before you get credit. The only problem will be how you pay those loans. However, I have noticed that it is not an east task to pay off too many loans and financial intuitions like banks and other lending companies might get scared, However if you can prove that you have a good debt repayment history even with too many loans, then be sure to get the credit you need.