Loan Declined Despite a Good Income? Here's Why It Happens

Many people believe that having a stable income guarantees easy loan approval. However, that's not always the case. Have you ever wondered why your loan application was rejected despite having a steady job and regular monthly salary?

In reality, income is just one of many factors considered during the loan approval process. Behind every approval decision are various other criteria—such as credit history, debt-to-income ratio, residence information, and past financial behavior. These often-overlooked factors may be the real reason your seemingly qualified application gets declined.

A Good Income Isn’t Enough

While stable income is a clear advantage, it’s not the sole criterion. Modern financial institutions assess applications holistically, using risk-based models that consider employment type, residential area, credit history, and the accuracy of provided information.

Here are some common reasons why loan applications may be rejected—even with a decent income:

• High-risk residential area: If you live in an area with a high default rate or limited data for verification, your application might be declined due to elevated risk, regardless of your income.
• High-risk or unverified profession: Freelancers, self-employed individuals, or those without formal contracts often fall into higher-risk categories due to inconsistent or unverifiable income streams.
• Poor credit history: Late credit card payments, missed loan installments, or carrying multiple loans can lead to a low credit score and reduce your approval chances.
• Inaccurate or inconsistent personal information: Errors in phone numbers, addresses, or mismatched identity details can trigger automatic rejection due to fraud prevention protocols.

Transparency Is Key

At Shinhan Finance, we aim to provide a fast and convenient online loan experience while maintaining strict credit assessment standards to protect both customers and the organization.

To improve your chances of approval:

• Submit accurate and consistent information.
• Review your credit report via CIC (Vietnam Credit Information Center) to ensure your score is healthy.
• Choose a loan amount that fits your financial capacity rather than maxing out your eligibility.

If your application is declined and the reason is unclear, don’t hesitate to contact Shinhan Finance's customer service hotline for detailed guidance. Each lender uses different scoring criteria, so understanding the process and preparing your application carefully is the key to successful loan approval and long-term creditworthiness.