Have you recently been rejected a loan by the bank? Don’t panic just yet.
You’re late on your bills, then you receive an unexpected payment that throws you off for the month – when you’re denied a loan by the bank you may be wondering why and what you can do next. Here’s 3 steps to get you on your way to financial freedom.
1. Ask Yourself Why
Banks are very selective when approving personal loan applications. They typically have lower approval rates than other types of lenders for a variety of reasons, meaning it’s difficult to meet a bank’s personal loan criteria. Main reasons include (but aren’t limited to) low credit score, low income, an abundance of debt and poor documentation.
If they don’t tell you why they rejected your loan application, you should ask for an explanation. You should also check out your financial situation to see what red flags exist.
2. Delve into Your Credit Report
As mentioned above, lenders will turn down people for loans when their credit scores aren’t high enough. This shows them that you may not be responsible enough to take on another loan from them and pay it back. In some cases, banks simply have credit-score thresholds in place and the failure to meet these thresholds can result in immediate denial.
Prospective borrowers have the right to obtain a free copy of their credit report following the denial. Consumers should examine the report to ensure there is no false information in their credit history. By inspecting your credit report, you can paint a clearer picture of why you got rejected for a loan.
3. Fix the Problem(s)
By analyzing your credit report, you might find errors on it that are dragging your credit score down.
Firstly, you may be one of the 20% of Americans with incorrect errors on their credit report. Taking a close look you could find out there’s debt on your report that doesn’t belong to you, or even a bunch of missed payment notifications that simply are incorrect. If there are inaccuracies, you should contact the credit bureau, file a dispute, and work to have the error remedied.
Secondly, in order to secure loans in the future you need to wipe the slate clean. It’s time to pay off those outstanding bills bringing your credit score down. By using the right approach, you can begin to make a 1-2 year plan to pay these debts off and begin to rebuild your credit report.
A Personal Loan May be the Solution
If your loan application is denied, you might not know where to turn or what to do next. If waiting to re-apply simply isn’t possible because you need money now, short-term multi-pay loans are a perfect way to respond to unexpected emergencies.
Total Loan Company pick up where the banks have abandoned you. With Total Loan Company you’re guaranteed:
- No Extra Fees, You Always Know What You Pay
- 24/7 Customer Support
- All Data is Fully Protected
We make borrowing easy, convenient, and affordable with fast loan solutions. If you need a personal loan, we can help! Apply today and get your money tomorrow.