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Getting your loan rejected and working your way up
Getting a loan rejection can be a difficult time. There may be things you can do to increase your chances.
08:38 24 December 2013
It can be difficult when you receive a rejection for your loan. You might worry about what you are going to do and you might wonder why your request for funding was rejected. Here are a few reasons
why your request might have been rejected:
- Your debt to income ratio was too high.
- Your available assets are not enough to ensure loan repayment
- You have payments overdue by 60 days or more
Legally, your lender is required to lend responsibly. They are not legally allowed to lend to people they do not believe can repay the debt. Do not worry.
This is not the end of the road.
You can find your way, and make it to financial freedom.
Yes, there are things you can do to increase your chances of getting your application approved the next time you apply.
- Get a copy of your credit report and go over it. Look for any errors. Look for ways to improve your credit.
- Look over the debts listed on your credit report. Are some of them close to being paid off? If so, consider reducing some monthly payments to the minimum and applying more money to the ones that can be paid off faster.
- Create a budget that allows you to pay more than the minimum payment on your outstanding debt.
- Look at alternative options. If you need debt counselling help, do not be afraid to reach out for it. This can go a long way to helping you reduce your payments and get you to where you can apply for a loan faster.
- Find a co-signer, if you want one.
- Do not apply for credit too often, the more you apply the worse it looks
Following these steps can help increase your chances of getting your loan approved when you go back to apply.