I could remember vividly the first time I wanted to borrow money from Easemoni Loan app, This happened when i was an Undergraduate in the University of Jos. I was in 200 Level by then. I needed the money to print some materials for one of our group assignments and presentation.
I called home but they were giving me excuses. My dad told me to give him till Friday before he can send me money. I could remember Vividly, that day was on a Tuesday. Out of desperation, I called my mum to help as well. She said I should call my Dad and Tell him.
Women will always be women. Those souls are amazing souls. The way they shift responsibilities easily to their Husbands need to be studied. I told her what my Dad said and I told her what I wanted to use the money to do is school work and it is quite urgent.
She pleaded with me to give her till Afternoon. She said she is going to her shop as at the time I was coming and anything she makes from her business. She will send to me.
After some hours, I called her again and told her about what we discussed. She said to me "Son, I haven't made any sale today. Even the woman who promised to come and pay back her debt today, I haven't seen her."
I was touched by Mum's Sincerity. From her voice, it is quite obvious she was sincere. When I calculated all the money I needed to print and do everything I want to do. It was about N10,000.
As at then, N10,000 is such a big money prices of goods and services was still stable as at then unlike now that Inflation has risen to almost 70 percent. N10,000 in this current dispensation has no value like before.
In the comfort of my room at the hotel, I was disturbed and sad. Then, A thought popped on my mind. The thought whispered to me and said "Mide, Why don't you borrow from all these Loan Apps?".
I was happy that at least there is a solution to my current predicament. I took my phone immediately and made research on The Best Loan Apps I can borrow from.
A lot of them came out but I settled for Easemoni simply because of its brand name Easemoni. I needed that money that will ease me at that particular point in time.
So, I took my phone, filled all the necessary details and provided all the necessary documents. The process was going smoothly. At last, I reached the stage where I wanted to borrow the sum of N10,000. I tapped on "borrow" like my life depended on it.
A popped up message flashed before my eyes and I was told "Sorry, You cannot borrow at this time". I was just wondering why I can't borrow. I was thinking all sorts of things like "I have never defaulted in paying back". I told myself I have never borrowed before and I don't have bad credit score. What then could be the problem.
Initially, when I borrowed the sum of N10,000 from The Loan Application, All I was thinking was that they will borrow me the money easily. In fact, while processing the loan, I was already telling the person I wanted to give the money to kindly give me 20 minutes.
Unfortunately, I was rejected. When I saw the message, I felt so bad because I really needed the money badly.
I was complaining bitterly to people that day and Gbade told me to try other Loan applications. Gbade was my hostel roommate that year. He is familiar with these Loan Apps because He makes use of them alot. He gave me some Loan applications like Branch, Fairmoney and the likes that I could try out.
I tried all of them out and they were all saying the same thing which is "You are not qualified for a loan at this time".
I believe you must have experience something similar to this or maybe you know someone who experienced this and you are wondering why Loan Apps Reject People even with Good Credit Score.
In this article, we will provide adequate information on that and also provide other valuable information you need to know.
Let's move!
Why do Loan Apps Reject People Even When They Have Good Credit Score
Often times, we believe that the only reason Loan application can reject you is when you default on a payment or when you have a bad credit score.
Anyways, That is quite true. They can reject you based on these things but they are not the only reasons why they reject your Application.
The major reason why they reject your Application is what is known as Financial Shadow Profile. I know you are wondering what it means. Don't worry, I will explain.
Financial Shadow Profile is simply the data gotten from your phone by the Loan Apps. You know most times, when you want to apply for a loan, they will tell you to accept so that the loan can access some of the data on your phone such as Contacts and the Likes.
Without giving them Access to the data on your phone, you won't be able to borrow any money. It is these data acquired from your phone that they will use to judge or predict you to know if you can pay back or if you cannot.
Back then, I often feel Bad credit score is the only reason why Loan Apps will reject your Loan application.
It was until I was opportune to talk to one of the Loan Agents of Carbon. His name was Elisha. I met him at a finance Conference in Abuja. I remembered vividly. I was in 300 Level then and during my Undergraduate days, I attend a Lot of Conference and I have been opportune to meet great people like Tony Elumelu (The Former Chairman of UBA), Femi Otedola (The Business Mogul) and many more.
Elisha told me that Lending money to people is a business from them and they always ensure the person they want to borrow have the financial capacity to pay back when the payment is due.
He said it is not only credit score they check, he said they check bank statements. He also says they check the data on the person's phone. They check if this person is a reliable person who won't run away with their money.
He said they are able to this when you click on "Allow" for Contacts, Sms, Location, Apps. He said once we click on this tab, automatically, we have given them access to our whole lifestyle.
He said to us during the conference that it is after they check all these things that they will check your Credit score to weigh their options on if these person is reliable or not.
7 Shocking Things Loan Apps Use to Judge You Before Granting You A Loan
1. Number Of Loan Application on Your Phone: When you grant them Access to your phone, one of the things they check is to ascertain the total number of Loan Application you have on your phone.
If they sense that you have a lot, it might be a bad signal to them that maybe you are a chronic debtor who loves borrowing here and there without the intention of paying back.
When they see that you have a lot of Loan Applications on your phone, Your score drops instantly.
2. How you scroll their Terms & Conditions: Most people don't know that once you grant them Access to your device, they check all your activity. One of the things they check is how you read their terms & conditions.
If you are the type that didn't read the terms & conditions, and you just scrolled down to the Accept button at the bottom part of the page, They might think you are so desperate to secure a Loan.
This might send a negative signal to them because they know Rich people are often calm. It is people who is not financially buoyant that is often desperate.
3. Your Location Habit: They check your location History too. They check if you are the type that is always at home in one location during the day or check if you are the type who moves from one place to another.
If they see that you are the type that moves from one place to another, they might categorize you as someone who is working but if the reverse is the case, they might categorize you as someone who is always idle.
When they notice you are always idle, they might not want to borrow you any money because they will feel you won't be able to pay back after borrowing the money.
4. How you store your Contact Names: Funny enough, this is another thing they check. They try to check if you store people with their names or title. For instance, if they check your contact list and they are seeing names like Chief Obaloluwa, Pastor John, Mummy Isreal and Other names like that.
It send positive signal to them that you have people and you are genuine. But if reverse is the case, and they found out you are storing people contacts with initials or unrealistic nicknames, they might not want to borrow you.
5. How you type: They also check how you type. Are you the type that type too fast or in a normal way.
If you input your details in their database in a fast mode, it will send a negative signal to them that you might likely be a fraudster or a dubious person.
The reason why they feel this way is because they are wondering why you were typing fast and filling your details in a fast mode. They sense desperation whenever you do that and that is a negative signal.
6. The type of Device You Are Using: Another thing they check after Granting them Access to your device while applying for a loan is the type of device you are using. They check if you are using a sophisticated device to get the loan or an unsophisticated device.
If you are using device like MacBook, Iphones, Samsung series or any other android that is sophisticated, they might consider in borrowing you the Loan.
They feel you must be financially buoyant enough to be able to acquire that device.
7. Your Battery Level: Lastly, they check your battery level. They check if your battery has quite some reasonable percentage on it.
If your battery is below 50 percent and you are applying for a loan. It sends a negative signal to them because they might feel, when you default in paying on time and they are trying to reach you, they might not be able to access you. Some Loan Apps classify Low battery as a red flag.
How to Fix Your Shadow Profile and Increase Your Loan Limit
Do you know that even if they accepted your loan, they won't start giving you big amount at first. They might start with as little as N5,000 as the maximum amount you can borrow at the time of application.
They do this to see if you pay back on time or you will default. If you default, then getting bigger loan will be difficult next time.
Getting bigger loan will be difficult because they know you are not faithful in little, how then can you be faithful in much. Definitely, you can't.
Here are five ways by which you can fix your shadow Profile and Increase your Loan Limit:
1. Delete Any Loan Apps You Are Not Using: If you want to make loan apps to borrow you money even when it is your first time of applying, the first thing you must do is that you must delete any loan apps you are not using.
Even if you are using them, delete them because what is the essence of having many Loan Apps on your phone. It sends a negative signal that this person is a chronic borrower.
In the book of financial literacy, they will tell you to avoid loans as much as possible because it is just like you are borrowing from your future money to pay the present.
Hence, from this ideology, they will feel you are not financial literate enough for you to have a lot of Loan Apps on your device.
They feel it will be a financial mistake to borrow a huge amount of money or to borrow even the minimum amount of money to someone who has a lot of Loan Apps. The best thing is to delete these Loan Apps if you want to get approved for Loans.
I could remember back then, I had up to 9 Loan Apps on my phone, I had to delete 7 out of it when next I needed money. This is because I am informed they check this to know if you are a chronic debtor or not.
Of course, if you are not a chronic debtor, why would you be having 9 Loan Apps on your phone. Though, my own case was different. I was not a chronic debtor neither will I ever be. I just needed a single app that will borrow me money as at then due to the frustration of Rejection I was getting from them.
2. Audit Your Permission: Before Granting the Loan application access, you can audit the permissions you give them. If you don't want them to get Access to some data on your device, you can deny the permission.
Though, some Loan Apps will require you give permission to all data they needed. If this is the case, there is nothing you can do.
But for those applications you can audit the permissions, the best way to do this is to go to settings, scroll to permissions and then remove contact/location of the access of the loan apps you are not using as at the time of application.
I could remember the first time I tried to borrow money from Fairmoney. When I saw the terms & conditions, I was so desperate to the extent that I didn't even read it. I was just scrolling and clicked on Accepted.
Little did I know that their system sees the way I was scrolling and it automatically flagged me as a potential threat. To cut the Long story short, I was not borrowed that money.
3. Charge Your Phone & Don't Rush the Application process: Ensure your phone is fully charged or atleast above 60 percent. Also, while applying, ensure you take your time to fill the form. Don't rush and don't be too desperate.
Also while applying, ensure you fill the forms during the weekdays (Monday to Friday). Also, fill it during work hours (9a.m to 4p.m).
It is important to use Wi-Fi too if possible and not mobile data.
4. Borrow the small amount of Loan Limit they gave you: Ensure you pay two or three days before the due date. Don't pay on the due date or after.
Don't give them the opportunity to start chasing you with calls or text message before you pay your loan. When you do this over and over again, it builds trust and they will increase your Loan Limit.
5. Work on Your Bank Statement: Ensure you have a clean bank statement. Don't be the type of person that borrows money from different loan apps. If you do this, they will see the money that comes in and the name of the Loan apps that borrowed you that money.
Or don't be the type that uses the little money in your account to bet or predict. All these sends a negative signal to them because they might think that if they borrowed you that money, You might use it to pay other loan apps or use it for betting.
Also, don't be the type that spends anyhow. Let them see that you are a prudent spender. When you do these, it will increase your chance of getting a loan.
Conclusion
Loan Apps are very smart but you can be smarter by using some of the tips you read from this article.
Also, it is important you borrow wisely. Borrow only when it is necessary. Don't borrow for fun. It is not really bad to borrow as long as the reason why you are borrowing is genuine and urgent.
However, ensure you try to borrow from loan apps that has reasonable interest tariffs. There are some Loan apps whose interest is on a high side, avoid them like plagues.
Don't forget to borrow reasonably. See you in our next post.