Why can I not get a loan? If you’re asking that question, you’ve likely been turned down for a loan or perhaps several.
Even though you’ve been turned down for a loan, you haven’t done anything wrong by applying.
Why Can I Not Get a Loan Today?
Most of the time, you just didn’t meet the lender’s qualifications for taking out the loan.
Why can’t I get a loan, you ask?
Well, in this article, let’s review what to expect if you can’t get a loan.
If You Can’t Get A Loan What To Expect
Have you been turned down for a credit card or a personal loan?
Lots of people have. If you’ve been turned down recently, there are things you can do to learn why you may have been turned down.
Not only that, there are things you should avoid doing or you may end up negatively affecting your credit history.
Ask Questions, Get Answers
If you’ve been turned down, you can ask your lender why you’ve been denied.
Many provide the reason why you were turned down as a part of the letter they send confirming your denied application or at least tell you the source they have based their decision on.
If you didn’t receive a reason, get in touch with your lender to learn why.
Some may provide additional information, such as the credit reference agency they used.
If you see a mistake in your credit report and you suspect that’s why you were turned down, you can dispute the mistake with the Agency and have it corrected on your file.
You’ll have to write to them, provide them the appropriate evidence and wait up to a month for them to act against the disputed detail in your credit report.
Stop Applying ASAP
It’s tempting to keep applying for credit after being turned down, but it’s not the best choice.
Any credit applications that you complete, even if you were denied, will show on your credit report after a period of time.
If you submit several applications in a short amount of time, lenders may suspect you might not be able to follow the terms of their loans.
This can also damage your credit score, which diminishes your ability to get accepted for better loans with low interest rates.
What To Do If Denied
If you can’t get a loan, there are other options for you to get money.
You can look into alternative ‘last resort’ loans like payday loans to borrow quick cash.
These loans, however, can end up costing more if you’re not careful, but sometimes when you are asking why can I not get a loan and you need the cash right now, payday can be just the ticket.
Credit union loans provide a safer borrowing alternative for people who get denied taking out new conventional loans.
While you do have to save money before you’re allowed to borrow, joining a local credit union can also provide you much needed financial help to get you back on track.
Have a look at the credit companies on this website as they will accept applicants with some bad credit or low credit scores.
Instead of saying Why can I not get a loan, you could be saying, I have just got a loan!
See also Will I Be Accepted for a Loan?