Loans: Amount eligible for reduces after early repayment. Why is it so

[Kross]

Normally, the amount that a person can get as loan after an early repayment of the previous loan is supposed to increase. But in this my friend's case, he was offered a lower amount of loan after he paid the previous loan very early.

What could be the reason for that?

 

[Min George]

As someone that works in the financial sector, I can say that the transaction level in your account reduced. And that is why that happened.

 

[eLdavis]

Am not sure why this happened though, maybe he should check his credit score? Though i think it would be best to contact the loan app directly and find out from them.

 

[King Belieal]

Am not sure why this happened though, maybe he should check his credit score? Though i think it would be best to contact the loan app directly and find out from them.

That is true. The person should contact the borrower to know why their credit score dropped. It obviously dropped.