Ever in the position where I Need a Loan But Keep Getting Declined for loans or Been Declined a Loan application recently?
There are only a handful of things more frustrating than applying for a loan that you so desperately need and being declined and keep being refused a new loan over and over again.
The overwhelming majority of people out there that have reported that they are dealing with stress, pressure and anxiety report that they are dealing with these emotional issues mostly because of money problems.
Searching for I Need a Loan But Keep Getting Declined For Loans?
- Searching for I Need a Loan But Keep Getting Declined For Loans?
- Get your personal finances in order
- I Need a Loan But Keep Getting Turned Down Should I Bring collateral?
- Take advantage of opportunities to rebuild or re-establish better credit
- Different loan types for poor credit
- Turned Down For A Loan Everywhere?
- Find Out Why You Have Been Denied A Loan
It should not come as a surprise to anyone that has been strapped for cash or flat-out broke at one point or another, that money issues can lead to some seriously bad behaviour.
However, getting denied for a loan over and over only makes things worse. There are a bunch of different things that you’ll have the opportunity to do to improve your chances of getting your hands on the loan you so desperately need.
We are going to share a couple of them with you below so as you will not Keep Being Declined Loan, when you are really saying I need a loan.
Get your personal finances in order
You are going to want to make sure that you have your financial life in order as much as humanly possible before you apply for your next loan or you’re just going to be going through the Ground-hog Day scenario time after time.
Have all of your financial information available at your fingertips, clean-up as much of your outstanding debt as possible and show them how you plan to repay your loan without it being an undue burden.
All of this legwork is going to pay off big time when it’s time to apply for the loan you need.
I Need a Loan But Keep Getting Turned Down Should I Bring collateral?
Unsecured loans are very difficult to get approved for when you are dealing with poor credit or no credit situations, which is why you want to try and bring as much collateral as you can to the table to improve your odds.
Only you and your lender are going to be able to determine exactly what is acceptable as far as collateral is concerned (as well as how much you have to put up), but it’s a conversation that you’re definitely going to want to have.
Take advantage of opportunities to rebuild or re-establish better credit
Lastly, you’re going to need to take advantage of as many opportunities as possible to rebuild and reestablish better credit.
There are a lot of different programs out there that will help you re-establish better credit, that will get you back on your feet and that will allow you to prove to lenders that you’re someone that they’ll be able to trust.
Start to take advantage of those opportunities ASAP, so you can reverse that scenario and get accepted instead and never get a Loan Application Declined!
Why do I Keep Being Declined Loan? – It is frustrating when you need cash and keep being declined for loans. There are several reasons this happens and there are ways to change this to obtain keep being declined loans.
State and government regulations are in place in order to require lenders to lend responsibly. In this process a lender needs to verify that you have the ability to repay the loan. Poor credit is the number one reason people are declined for loans or refused a new loan everywhere they apply to.
If you have poor credit and keep getting declined especially by traditional lending institutions, you can turn to non-traditional routes to receive small loans to help you through a cash crunch. Non-traditional lenders are payday loans, personal loans and door to door lenders.
These lenders offer short term loans in small amounts and require a credit check. The key thing these lenders look for is your ability to repay the loan.
Different loan types for poor credit
In the case of Payday loans the lender verifies your employment and takes your next pay cheque as collateral for repayment of the loan. Unlike traditional lenders, payday lenders are not concerned with your debt-to-income ratio or collateral.
They divert their risk by charging high interest rates and fees. They often set up automatic withdrawal plans to receive their money on your scheduled pay day. Personal lenders are more flexible with repayment and offer monthly payments to fit your budget.
These too are high interest loans with Annual Percentage Rates that can reach the 1000 percentile. When you are looking for a keep being declined loan, the personal loan lenders are a viable options. Some of these lenders report to credit bureaus so this can be used as an opportunity to establish or re-establish credit.
Door to door lenders work in a similar manner, but they come to your home every week to collect the scheduled payment. These payments are generally small and it is best to repay these loans as fast as possible to avoid the extremely high accrued interest.
Working with door to door agents provides a much more personal manner of receiving loans when you have been declined previously. The agents work with you on a personal level to ensure you are able to repay and if you run into trouble they will help arrange for an acceptable solution.
Keep being declined loan is available for those who don’t fit the mould of traditional lenders. There are several options with non-traditional lenders but these loans are expensive and should only be used in emergency situations or to strategically build credit.
If you have been declined loan, then you are not alone. At any given point in time, there are more loans rejected than approved. In other words, a majority of loan applicants are not the ideal candidates for banks or financial institutions.
Turned Down For A Loan Everywhere?
There is a reason why credit unions, private lending firms, peer to peer lending networks and payday loan providers have mushroomed all around the country.
They cater to a large populace that don’t have a healthy credit score and this can be one of the most important factors to get a loan approved.
If you have been declined a loan, then you should take the following steps.
First, find out the exact reason or reasons as to why you have been turned down for a loan everywhere. It is quite possible that a combination of factors have lead to the rejection. At times, the reason for rejection can be as simple as bad credit or an unacceptable loan to value ratio.
At times, the reason can be as silly as incomplete application or incorrect representation of facts. The second set of reasons can be resolved easily. Bad credit cannot be resolved overnight. Poor loan to value ratio can be addressed if you have some money to increase down payment or reduce the loan amount.
In some cases, the financial profile or the income, the nature of one’s profession and several such similar and dissimilar factors can be the reason behind rejection. Not always would you be told such reasons but if you can find out then it would be helpful. In any case, you must apply for a loan when you know you qualify for it.
Else, you must apply at a place or with a lender who would entertain a profile like yours. Consider reapplying with the same lender after a period of six months or a year, if you can wait that long. During this time, you may want to address the reason for rejection.
Else, you would have another rejection, no matter when you reapply. Bad credit can be repaired, loan to value ratio can be made more desirable for the lender if you increase the down payment which you can do by saving some money over a few months.
There are ways to remedy the situation. Having been declined loan is not the end of the world. You may and should consider alternatives. Look for lenders that do not consider the factors that were ground for rejection in your case as qualifying criteria.
Find Out Why You Have Been Denied A Loan
Banks have the discretion to deny you a loan. Every financial institution and lender has the right to deny you a loan, but most are required to provide you a reason why you have been declined loan. Many a time, people don’t realise that knowing why you have been declined loan will help you to get a loan the next time you apply for it.
You have the right to know why your application was rejected. We have lenders and companies that you can apply with on line and get a decision in a few minutes, even if you have been denied a loan before. The same individual or borrower can be denied a loan for different reasons by different banks or lenders.
There is a certain degree of uniformity as to why a loan is denied but then there are discretionary factors as well. Let us talk about the common reasons that are likely why you have been denied a loan. The first and the most common reason is adverse credit.
Depending on the loan and whom you have asked for the loan, your credit score will have the biggest influence. Some banks are more lenient while some lenders are very stringent. Some private lenders may not even consider the credit score.
It all depends on who you are dealing with and the type of loan you need. Obviously, you cannot get a home loan or a huge business loan if you have bad credit. But you should be able to get a small personal loan regardless of your credit score.
When you have your application declined, denied or rejected, ask directly if it was your credit history. It is advisable to opt for a loan only after knowing if you qualify for it. Banks and financial institutions make it clear that they will only entertain applications of individuals who have a certain credit score or more.
You need to know if you qualify and if you don’t then it is futile to waste time, energy and resources. You should rather focus on avenues that will get you the loan rather than keep saying “I Need a Loan But Keep Getting Declined”.
A common reason why you may have been declined loan is the lack of enough information. Normal clerical errors or typos, unintentional furnishing of wrong details or information can be remedied, although these can lead to rejection.
There are other aspects that are more important, such as proof of employment, proof of identification, financial statements and tax returns. All these factors play a role in approval or rejection of a loan. You must delve into these details and speak with the lender to know if any of these is the actual reason why you have been declined a loan.
The purpose of the loan is also important. Whether you are buying a car or want to pay for higher education, the exact purpose and the viability of the spending is assessed by a bank or any lender. If the purpose does not sound good enough for the lender, then your application may be turned down.
Another very common reason why you have been denied a loan is your ability to repay. This will be assessed on the basis of your income and existing financial liabilities or obligations. Even if you have a good credit score, your application may be rejected if you are asking for too much money when your financial profile does not make enough room for repayments.
We have lenders on this page that will accept some bad credit history, so feel free to apply now for your new loan. We hope this article on I Need a Loan But Keep Getting Declined UK has been helpful, together with the other pages on this website.
See also urgent loans UK.