What Can I Do If No One Will Give Me a Loan?

Receiving rejections on every loan application seems like the end of the world. You get hopeless and think about the possibilities that put you in this situation. The fact is, you cannot be prepared for every cash emergency. Sometimes, your financial circumstances may not be on top to fetch an instant loan. It does not mean that you will never get one.

Yes, you can seek alternatives meanwhile, like getting help from family members, friends, etc. However, if that does not work, the blog may help. It lists the steps you should take after suffering a loan rejection. These will help you avoid facing such things in the future and get a loan instantly.

Why are you facing continuous loan application rejections?

It is the first thing to consider and improve before applying again. Unless you know the reason for the rejection, you will not qualify. Most loan providers are upfront about the delinquencies or credit issues which led to the loan rejection. If he does not, then you must ask for the details. Knowing the mistakes would help you avoid these and prepare a fresh application with increased loan approval chances. Here are some common reasons for the loan rejections:

• Poor credit history
• Non-reliable income source, insufficient earnings
• Untraceable residential history or current address
• Incorrect information on the application
• Incomplete application
• Applying for an amount more than you can afford
• Seeking the wrong loan
• Having bad credit links, like joint accounts with bad credit people
• Too much high-interest or costly debt in the credit report
• Your credit report reveals bankruptcy status
• Too many credit applications in the shortest time
• Not being registered to vote

These are some of the most common reasons for loan rejection. Out of this, 80% of individuals face rejection due to poor credit history.

5 things to do instead of re-applying immediately

One must never make another application immediately after facing a loan rejection. It affects your credit score drastically. Instead, you can take these steps to improve your loan approval chances:

1) Identify the specific reason for loan rejection

As mentioned above, most loan provider tells you why you did not pass the eligibility assessment. Based on this, you can improve your financials. Every reason for the loan disapproval has a unique solution. For example, if you did not get a loan due to an untraceable residential or rental history, improve it.  Ensure to live for at least 2 years in a place to generate reliability.

Make sure you have the council bill at that address, too. Alternatively, if you have been rejected due to applying for a larger amount than you may qualify for, check the loan calculator. It helps you know the basic or approximate costs. Accordingly, you can decide on the right person to approach. Alternatively, you can pre-qualify before “applying” directly. It helps you know the chances of getting a loan without affecting your credit score.

Therefore, different reasons for the loan disapproval have their solution. You can either ask the creditor or contact a financial expert to know your options better.

2) Boost your credit rating

If you have been suffering clear loan rejections due to a poor credit profile, rebuild it. A low credit history reveals the challenges that you might face in repaying the dues. It could be missed payments, CCJs, loan defaults, etc.

What you can do is try to set up a payment plan to repay the dues. You may struggle initially to decide which one to pay. If you have too many heavy interest debts, consolidation may help. You can consolidate the payments by contacting private lenders for bad credit scores. These experts may help you get an instant loan for low credit and consolidate your debts. It helps you boost your credit score and lower liabilities and interest payments.

3) Avoid credit card usage for some time

If you keep getting declined for loans, new credit cards may affect your further possibilities. A credit card is a high-interest debt which may impact your credit rating if you don’t pay the dues timely. Therefore, before seeking any loan, reduce dependency on credit card usage.

It keeps your credit utilisation limit healthy. You have a high possibility of getting the loan at better terms and interest rates. Moreover, don’t close the existing credit cards. It may also bring down your credit history and, eventually, your score.

4) Pay your bills timely

It is basic but the most important aspect of improving the loan approval chances.  Identify the challenges that you face while clearing the dues in a timely manner. It could be due to forgetfulness, negligence and unexpected financial mess. Well, you cannot always control the unexpected, but yes, you can plan for that. Set up direct debits for regular debts like rent, utility bills, groceries, repairs, transportation, etc.

 However, no matter how much you try, you get cashless at times. It could be in situations like unemployment, personal loss, disability, etc. In this situation, you cannot depend on just the benefits to fund the cause. However, you may use unemployment benefits to your advantage.

Check the affordable quotes for loans with benefits for bad credit scores to fund your needs. You may have bad credit as you lack a consistent employment history, a regular salary, as well as pending bills to pay. Such situations largely affect your credit score. Therefore, check on the possibilities to get this loan and counter the unpaid bill immediately. It may prevent you from attracting unnecessary penalties for missed or late payments.    

5) Identify prospects to improve the income

A healthy income is the route to getting instant approval for loans. The higher the income, the greater the chances you have of getting the loan. However, apart from being a good income, it should be a consistent one, too. Here are some ways to improve your income:

• Consider a part-time income
• Check the possibility of having another income source
• Identify the prospects of job promotion
• Analyse new and attractive package job opportunities
• Reduce unnecessary expenses to boost basic savings

Bottom line

Thus, you don’t need to panic if your application gets rejected. You can always be hopeful and work towards improving your finances. Begin by understanding the cause behind the loan rejection and how you can counter it. Next, analyse your credit report and pay some dues to optimise your credit history. It will boost your credit rating and qualify you for affordable interest rates and terms. Similarly, knowing the reasons for disapproval and improving the prospects may help you.