Facing rejection for a personal loan is the worst nightmare of anyone in dire need of money. The good news is that rejection of a loan application is often the first step of improvement in financial status. Considering the economic breakdown of year 2008, modern-day lenders are not up to taking risks and are extremely stringent about giving loans. But that doesn’t mean you have reached the dead-end. This section describes all the plausible measures you can take to ensure your next application is approved.
- Mend Errors: If there are discrepancies in your credit report, rectify them as soon as possible. It’s not fair to be held responsible for errors that you haven’t done and you do have the right to get those mistakes eliminated. Fortunately, it is possible to update credit scores using rapid rescoring, especially when you are dealing with costly purchases like home or auto.
- Down payment: Sometimes, making a bigger down payment helps in loan approval. A larger down payment means you are borrowing less; consequently, your monthly payments become lower. As such, lenders may be willing to give you a loan despite poor credit.
- Repay Pending Debts: If anything else, it’s your pending loans that are causing problems. Lenders determine how much amount you spend for paying off debt; hence, reducing that amount will create a better impression and improve your credibility as a borrower.
- Make use of a Collateral: A collateral may help you get your loan approved if you have applied for personal or business loan. However, if you are taking a loan for big purchases such as home or car, then what you are buying is already collateral in itself.
- Get a co-signer: If the odds are completely against you in terms of credit or income, maybe it’s time that you include someone else’s credit history and income to your application. That person then becomes your co-signer. Your co-signer is responsible for repaying the loan, in the event that you fail to repay. Therefore, it is imperative that you explain all the terms and conditions to your prospective co-signer and ensure that they understand the risks properly.
If you are tired of running from bank to bank and hearing ‘no’ as an answer, then maybe it’s best that you apply for a personal loan online. No credit check loans can be availed by anyone; all you have to do is specify how much amount you want to borrow and the time period within which you’ll be able to pay it off. Cash transfers take less than an hour, and no extra questions are asked.