Being turned down for a loan or paying absurd interest rates is not very pleasant. There are a number of reasons why you may not be approved by a particular financial institution, or if you are approved you'll have to pay absurd interest rates.

The reasons for this are considered strategic. Knowing the most common causes will undoubtedly make it easier for you to detect why the credit was not approved.

If your SCORE is low at the moment and you are carrying out financing simulations or loanyour application will probably be denied. And if your application is rejected, your CPF will be penalised, which will directly affect your SCORE score and reduce it.

Do you have a bad name?

Having a CPF Negative clearly means that a person's name is dirty. This type of situation is seen every day in Brazil. This CPF denial occurs because you have a debt in your name that has not been paid.

In this case, if you are limited to applying for some kind of credit, it is likely that your application will have more difficulty being approved by the banks until you resolve the outstanding issues.

What many report, "But my name is clean and I still can't apply for a loan". In fact, a dirty CPF is not the only reason that can lead to denial.

What is Payment History?

This is one of the most important points that financial institutions take into account not only when approving your application. But also to determine your interest rate and limit.

The better your payment history, the greater the chance of your application being approved and getting the best interest rate.

If you are in the habit of leaving arrears or negotiating debts, even if you are not in arrears, you could suffer the consequences if your credit is refused.

My Score, Does it Influence?

The term "score" has become increasingly familiar to Brazilians. Mainly due to the work carried out in recent years by credit agencies such as SCPC Boa Vista, Serasa, etc.

The word refers to a statistical score for consumers, which is based on market data to find out what the chances are of this happening by default in the coming months.

It should be remembered that not all financial institutions use the same scoring data to assess whether or not to provide a loan.

What's more, a good score doesn't guarantee immediate credit approval. Each company has its own criteria for analysing credit and cannot consult a consumer's credit score when offering them credit. The simple fact that you have a good score can make it much easier to apply for the finance you want.

Do the maths before applying for a loan. Pay close attention to how much you earn and how much you spend. Consider the loans and debts you already have. That way you can see how much of your money has already been committed.