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.
Keep applying but keep being declined loan?
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.
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.