Question

Q1: How would debt-to-income affect loan rejection?

Q2: How would the length of employment affect loan rejection?

Q3: How would credit (or) risk score affect loan rejection?

Q4: Which three states have the largest number of rejected loans with "very bad" credit score?

Answer 1

ans1 The amount being applied for in the loan has to be in line with your income so that you can comfortably repay the amount. If you apply for a high loan amount that would be difficult to be supported with your income, then it comes across as a case for loan rejection.

ans2Lenders prefer to give loans to those who have a stable job. For sanctioning a bigger amount of loan, they also consider the time period of your present employment. Thus, you should avoid frequent job switches during your career as it may have a negative impression on the lenders.
ans3 lower credit score may incur loan rejection since credit score signifies the credit worthiness of an individual therefore lower lower credit score either incur loan rejection or higher interest rates

ans4 these states have very low credit score

• Mississippi (652)
• Louisiana (653)
• Georgia (659)