1. Too many loan approval query records.
When applying for a small loan, it is basically necessary to check the credit information. Some loan products need to be audited every time they are used. The system will query the borrower's credit report regularly or irregularly. There are many inquiries about loan approval and post-loan management, which will have an impact on credit investigation. Too many loan approval records will make the lending institutions think that the credit reporting parties are in poor economic condition and lack of money, but will refuse their loan applications.
2. The debt ratio is too high.
If the use of small loans is reported to the Credit Bureau, the lending institution will find that there are too many outstanding loans, and it will think that the credit reporting party has too many debts and loans overdue is at great risk, so it is unwilling to approve more loans.
If you apply for a small loan many times, you must not overdue the repayment. The number of overdue times has a great influence on your credit information, and your application for bank loans may be rejected directly in the future.
As for whether multiple small loans will affect credit reporting, it still depends on the specific number of times. If the small loan is repaid on time, there are not many loans under its name, and the borrower's income is high, so the impact of applying for other loans is generally not great.
Extended data:
What is personal credit?
Personal credit refers to a person's credit status. Specifically, in the personal credit report, it refers to whether you have experienced various situations such as interest arrears, overdue, advances, renewal of loans, and trade-in of old ones during the financing process. If you have never had it, your personal credit status is excellent; If there is short-term interest in arrears or overdue, and it is not more than six times for three consecutive times, it is good; If there are frequent records of the above types, the credit situation is poor.
There are many small loan records in the personal credit report. As long as the repayment and interest payment are made on time, personal credit will not be affected. However, the frequent record of small loans is not a good customer for banks. If they apply for mortgages in the future, they will often refuse to lend.
Why did the bank refuse the loan?
Having a small loan, as mentioned above, does not mean that your credit is bad or you are unable to repay, but that the bank refuses the loan and only considers the following two factors:
(1) Personal qualification: In theory, when we think of loans, the first reaction is banks, but your credit report is full of small loans, and the interest rate of small loans is obviously much higher than that of banks. If a normal person can choose a bank, he will generally not choose a small loan. For bank inspectors, you may have been rejected by other banks, so your personal conditions should be limited and do not meet the access conditions of banks.
(2) shortage of funds: small loans, the amount of funds is often small, especially within 3000/5000 yuan. For banks, your capital chain is very tight and you need to borrow several thousand yuan. How to convince banks that you have enough funds to repay large loans? If you only record a small loan occasionally (for example, once every five years), it can be understood as a temporary turnover need, and the bank procedures are troublesome, but the frequency is the most deadly, directly nailing you to the crowd with tight capital chain.
Generally speaking, having a small loan record and repaying the principal and interest on time will not affect your personal credit situation; But it will have a greater impact on your subsequent financing in the bank. Personally, if you have no choice, don't borrow small loans easily, especially those who want to roll wool. Give a real example: once a person who borrowed a small loan told me that he was not going to pay it back because the small loan company was established quickly and closed down quickly. Once the small loan goes bankrupt, especially when the boss absconds with the money, he doesn't have to pay it back, and he makes a fortune in vain. It can be said that the ideal is beautiful and the reality is very skinny. This is based on other people's unexpected circumstances. What is the result? This small loan is still there. Not only did he not make money, but he also earned tens of thousands of interest. It's really a real version of the loss, don't always think about getting something for nothing.