11:06 17 October 2013
When your loan application has been rejected because of bad credit, what can you do to rebuild and improve it? If you apply for another loan, what are the odds that you will be rejected again?
What should you do?
Reason for rejection: Bad credit.
There are other options available so there is no need to worry. You may have bad credit but there are ways to improve your credit status.
What you need to do
When you go through loan rejections for a few times, you need to stop applying for new loans for a while. The more the number of rejected applications the more it affects your credit rating. After the first rejection, check your credit report for any payment defaults. Likewise, before applying for another loan, use a pre-application checklist to check if you are qualified for the loan you want to apply to. From here, you may narrow down the reason for the rejection of your loan.
How can you rebuild your credit rating
First, you need to look for a balance transfer with a lower or no interest card and transfer your current credit. This will allow you to pay your current credit faster at the same time lower your monthly repayment.
Moreover, to help you lessen the risk of getting rejected, use a pre-application eligibility checker to help you gauge your chance of having your loan approved. This won’t affect your credit worthiness because the lenders won’t see this application. If the result will not be on your side, you will need to evaluate the need to borrow and reconsider your options as to how you can better manage your finances. If necessary, you can consider free debt advice services available online.
Rebuild your credit rating by paying on time and in full every month to show you can really manage your finances. It sounds simple but it’s worth reiterating: The best thing to do when trying to rebuild your credit is to borrow only what you can repay.
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