What To Do If Your Loan Application Is Rejected

Are you all set to get that new car? Maybe you and your husband are just waiting on a call from the bank to tell you that you have been officially approved for your first home. There is no denying that you are probably sitting on the edge of your seat with joy and excitement. You probably have a few feelings of regret and worry throw in there. This is perfectly natural regardless of well the application process went because there is always a chance that you could be denied. There might be the slightest chance, but there is still a chance. That being said, there is no reason to freak out just yet because a denial of a loan isn’t the end of the world.

 

Find Out Why It Was Denied

It is probably obvious that your first step needs to be to understand exactly why the loan was denied and correct the issue. Of course, this is going to be much easier said than done. There are not only a number of reasons that your loan application could have been denied, but it can take years sometimes to fully correct a financial situation to where you can secure a loan. More than likely, your bank will send you a letter, text message, or give you a call stating the reason for denial. You could get denied for having a poor credit score or you could even get denied for not having enough established credit. Whatever the situation is, if you want to increase your chances of success, you are going to need to discover and rectify these current issues.

 

Take Advantage Of Collateral Or A Cosigner

Just because you are denied and it might take years to fully rectify the situation it doesn’t necessarily mean that you can’t secure a loan. It just might mean that you need to take a few extra steps to mitigate the risks that you pose to the lender. Lenders like HittaSMSLån will sometimes grant you a loan regardless of your credit if you have enough collateral to cover your loan. For instance, if you need a quick $1,500, you might be able to put your car or something else up for collateral if it is of equal or greater value. In fact, a mortgage or car loan already works in the same manner. The home and car will be the collateral, as the bank or lender can repossess it when you stop making payments in full.

A cosigner will work similarly. However, it just means that someone else is putting up the collateral for you. For instance, you might be able to get a brother or mother to put up her car for your loan. Of course, if you fail to meet the agreed-upon requirements it will be the cosigner that faces the consequences.

 

Increase The Down Payment

You can also always increase your chances of securing a loan by decreasing the down payment. Lenders oftentimes will consider the loan-to-value ratio when accessing a loan. If the loan is greater than the object that you are looking to purchase then this could always potentially lower your risks of securing that loan.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here