Smava is considered one of the leading online lending platforms in Germany. But what happens if Smava rejects your loan application? Below, you will learn the six most common reasons Smava may deny credit, as well as an alternative you can consider.
A credit rejection can have various causes. One of the main causes is insufficient credit score. If you have had payment difficulties in the past or have debts, this can lead to a rejection. In addition, other reasons may cause Smava to deny you credit.
In this article, you will learn how to optimize your credit application with Smava and what you can do if Smava rejects your credit application. We also provide you with an alternative so that you can fulfill your loan request despite rejection.
Read on to find out what reasons can lead to a rejection of your credit application with Smava and what you can do about it.
Important to note: A credit rejection by Smava does not always mean that you will not receive a loan. There are always alternatives you can consider.
Reason 1: Poor credit rating
One reason why your smava loan application was rejected could be your poor credit score. This means that your credit score has been affected due to past late payments, unmet payment deadlines or other payment difficulties.
If smava team members determine that your credit score is insufficient to qualify for the loan you have applied for, this may result in the rejection of your application.
It’s important to note that while a bad credit score can be challenging, it doesn’t mean the end of your loan options. Superior factors such as proof of income, future income expectations or higher collateral can help make your loan request successful.
smava is also happy to help you improve your credit score with the credit check service. With this feature, you can assess your credit score in advance and take action to avoid rejection in the future.
Reason 2: Lack of collateral
Another reason that a loan request may be rejected by Smava is a lack of collateral. Most lenders want to make sure they get their money back, and this is done by following security guidelines.
If a loan application is submitted without providing adequate collateral, the risk for the lender to lose their money increases. Since Smava specializes in online loans, it is difficult to obtain a loan without collateral.
This may result in a rejection of the loan application if the lender concludes that the risk is too high. However, investors also require collateral before making their money available as a loan. This is also how Smava ensures compliance with security guidelines.
In the case of a rejected loan application, you may want to explore alternative loan options, such as e.g. the online credit comparison at Check24. Here you can quickly and easily compare to different loan offers and choose the one that best fits your needs.
Negative Schufa entries as a reason for rejected Smava loan
One of the main reasons you may be rejected by Smava is negative Schufa records. If you have had difficulty repaying your loans or paying your bills on time in the past, this can lead to an entry in your credit history (Schufa). These entries can reduce the likelihood that you will be approved by Smava.
If you have a negative entry in your Schufa, it may mean that you are a higher risk of defaulting on the loan. Smava wants to avoid giving loans to people who may have trouble paying them back in the future. Creditworthiness is also measured by the SCHUFA score.
It is important that you regularly check your Schufa entries and try to clear them up. You can request your Schufa report free of charge once a year. If you find that a negative entry in your Schufa is incorrect, you can dispute it and try to remove it. If you need further help in clearing your Schufa, you can contact a debt counseling service or a lawyer.
Overall, you should definitely keep an eye on your Schufa if you want to apply for a Smava loan. Negative entries can reduce the chances of approval, but there are still other factors that are considered, such as your income situation and expenses.
Reason 4: Low income
More than half of Smava loan applications are rejected due to low income. When applying for credit, lenders must ensure that borrowers are able to repay installments and fees. The applicant must therefore have sufficient income to support the financing.
If a loan applicant’s income is insufficient to pay off the requested loan, the request will be denied. This is one of the main reasons why Smava credit applications are rejected. You may be financing multiple loans due to a low credit score or a high level of debt. Then, if you have a low income, it is difficult to repay loans.
There are several reasons for low income, including part-time work, self-employment or unexpected unemployment. In addition, a loan applicant may have a lower income due to age, gender, or place of residence. Low income is also considered a problem if there are credit obligations, such as.B. Rents, alimony, or monthly payments for loans.
- Alternative: If you are unable to obtain a loan due to low income, there may be alternative financing options available to you. You can turn to a nonprofit lending organization or a loan broker, for example. Alternatively, you can also include a guarantor for your loan application.
Reason 5: Age and health condition
One of the most common reasons for a Smava loan rejection is the applicant’s age and health condition. If you are elderly or suffer from health problems, this can be a barrier to loan approval. Banks and lenders want to make sure they get the money back, so taking a higher risk due to age or health may be out of the question.
But there are also alternatives for people who cannot get a loan because of their age or health. Here, for example, loans from private investors or specialized lenders can be considered. These can also grant higher credit approvals due to the different criteria, and thus finance people with a higher age or worse health status.
- Another advantage of such alternatives is that they are often quick and straightforward procedures. In contrast to the lengthy and time-consuming processes of banks, here can often be helped quickly and easily.
- In addition, there are also often more favorable conditions than with traditional banks. Private investors and specialized lenders often work with lower interest rates and more flexible terms to make their loans available to people with special needs.
Therefore, you should not be discouraged if your Smava loan application was rejected due to your age or health condition. There are always alternatives and you should start looking for a suitable offer. Even though this is a more specialized search, it may be worth it in the end and you can get your finances under control.
Reason 6: Incomplete documents
If you applied for a loan on Smava and it was rejected, it may be because your documentation was incomplete. Smava requires a variety of documents to process a loan application. This includes proof of income, copies of identification, and information on existing debts, among other things.
If Smava considers your documents incomplete or incorrect, the company will reject your loan application. It is important that you submit all required documents completely and correctly in order to receive a successful loan approval.
If you want to resubmit your credit application, make sure you have all the required documentation and review it carefully to make sure no mistakes were made. Careful preparation and submission of your documents can help you make a successful loan application.
- Check all requested documents carefully before submitting them.
- Make sure all information is accurate.
- Answer all questions completely and accurately.
- Ensure that you submit all required documents completely and in the correct form.
If you are having difficulty gathering the necessary documentation, you can ask Smava for assistance. The company is happy to answer any questions you may have and can help you process the application and gather all the required documentation.