Rejection stings bad, like, really bad. Yes, getting rejected by the person you love might feel like the worldâs about to end. But Iâve been denied countless requests for funds and itâs safe to say that financial rejection is the bitterer pill.
Then I thought, âHow âbout a shot of truth in that denial cocktail?â I dived into the intricacies to problem-solving rather than crying about it. I want to know why I keep getting denied for loans and Iâm willing to fix that problem.
Loans are like the Angel Godmother of Funds (with Judas on the sides) but they get things doneâthereâs no hiding that.
But life happens (clichĂ©) and wham! You find yourself low on credit score and on the expense of a few missed payments, your credit report is (allegedly) incorrect and you canât get a loan.
And no loans=no money, honey.
But all of this is happening behind the curtains so youâre forced to self-introspect with the question âWhy do I keep getting denied for loans?â To simply answer itâyes, something wrong happened at some point due to which you keep getting denied for loans.
To be fair, you know what the problem is. You know the end result as wellâthat you keep getting denied for loans. But how do I make things right? Do I have to do something (or abstain from doing something) to increase my chances of victoriously getting a loan?
First things first, you have to peep into your own backyard to understand where it had gone wrong. Life after loan denial sounds terrifying when youâre wrapped under a blanket. Time for me to get out of bed, wear my best pajamas and figure out why do I keep getting denied for loans.
Youâve been applying for loans to access quick funds for some of your problems. Now would be the right time to self-introspect and think about it. For a start, you can ask yourself these questions:
Itâs fine to ask why I keep getting denied for loans, but itâs pivotal to ask why we need it in the first place. In literally every instance of good loans gone badly, people have confessed that paying those loans off was just not worth the root cause.
Your credit report is something that lenders look into before giving out loans. This might sound harsh, but after all, itâs a computer that decides whether you get access to funds or not. A bad credit report is the reason for many people who keep getting denied for loans.
But in many cases, people donât even know whatâs going on when it comes to their credit reports. Theyâre paying off their balances or theyâre in peace because they have no loans outstanding at all, but some blotches on credit reports canât be seen unless they introspect.
By the law, you have 60 days to request a free copy of your credit report and credit score the lender used to evaluate your application. Start from that and examine your credit report. Take different turns if youâre new to borrowing or if youâre an existing borrower.
I asked myself âwhy do I keep getting denied for loansâ when I got rejected for the first time I went for the loan. And the second, and then I stopped to ponder over it. The simple reason why I got rejected was that I had nothing to show for my loan-taking and loan-payback capabilities.
When you are starting out afresh, itâs better to get a secured credit card and earn some brownie points in the name of responsible credit holding and paying back on time. If your credit file is too thin, thereâs a good chance of you being denied loans.
Your credit report is nothing short of a financial report card. Keeping it out of the red zone is extremely crucial. If there are some missed payments that you forgot about or if there are some credit card payments that youâre paying on the minimum, rise above minimum payments and pay it off ASAP.
Taking blotches off your credit report not only makes it cleaner than before, but lenders would welcome you with flowers and frills if your credit report is good. We are going to talk about more credit repair strategies later in this bit.
In many instances, credit reports turn out to be erroneous due to mistakes that can be spotted by the naked eye. For instance, it can be something as simple as a reported late payment that you made on time and youâve got valid proof that you did.
Credit bureaus would be more than happy to fix up those mistakes in case youâve got proof for it. Sometimes, even the most serious of mistakes like identity theft turn up in credit reports. It is very crucial that you check the credit report for errors.
However, a wrong credit report isnât the answer to why do I keep getting denied for loans. Different credit bureaus have access to information from different sources, so if you fix up error in one credit report, it doesnât necessarily mean that your credit score would shoot up with other bureaus.
The problem with being denied a loan is not the problem itselfâbut our reaction to it. Many of us on being denied a funds request start applying everywhere out of haste, especially when we need funds urgently.
This approach is like diving into quicksand and dancing all the way through. Iâve got to think about the root causeâwhy do I keep getting denied for loans? The biggest cause of being denied a request for funds is on my credit report.
Sometimes, building credit back up from the ground is as easy as increasing your monthly payments towards debt or checking your credit report for errors. Secured credit cards work wonders too.
But credit report is not your DIY project and this sensitive issue should be left to the pros.
Credit Repair companies do the job of building your credit brick by brick by following their standard procedures. Some of the best credit repair companies like Lexington Law are just one call away from examining your credit reports and giving you a rain-check for free.
Now that you know why you keep getting denied for loans, itâs better to step on it and start by fixing up your credit score. Hereâs a list of best credit repair companies to start with.
When you are applying for loans, try to browse for different lenders rather than sticking to one. Switching lenders does often do the trick in case of personal loans. Be wary, however, that you might be looking at high-interest rates in case of bad credit.
If you are denied a personal loan, then there is something wrong. Look for the problem and donât forget to fix it even if you get funds after some struggle. Even if it means opening a can of worms, do it before itâs too late.
If switching lenders doesnât work for you, get ready to work on Plan-B. You canât just sweep it under the rug and youâve got to fix this problem so that you donât ask the question âwhy do I keep getting denied for student loansâ.
We are talking damage control now, and if you keep getting denied for loans, nowâs the time to bring out the big (and sensible) guns. We are going to look at this problem with a macro-view, so if you are being denied for loans, hereâs what you can do:
The question that comes to mind isâhow? You can start by debt consolidation. The simplest way to reduce all your debt is with a single debt, one which comes with lower APRs and lesser fees. Responsibly pay off your debt consolidation loan and your chances of loan denial will be negligible.
Debt management is a way to save on interest rates and fees by negotiating with your lender. Do remember that debt management can only be of help if you put the money you saved in paying back your previous loans.
They say that money canât buy happiness, but it can pay off debt, which is what we need right now. Hustle on all fours to increase your income. You can switch your job if you feel that youâre not getting what you deserve.
If you are looking to get busier, a side-gig might interest you to bring in extra income. Just remember to use that extra income in paying off debt.
I keep getting denied for loans but I need funds ASAPâshould I go for predatory loans? Are they worth the risk? No they are not! If you need funds bad (like really bad) go ahead and get a secured loan by keeping collateral.
PRO TIP: YOUâLL LOSE YOUR COLLATERAL IF YOU DONâT PAYBACK. Think twice before procuring funds against collateral.
You can get a cosigner to assist you in getting a loan. This very much depends on what the cosigner thinks of you as cosignerâs credit takes a hit if you fail to pay back.
If you keep getting denied for loans, nowâs the time to take action and fix these problems. The problem lies right in front of you in the form of credit reports, unpaid debt and missed out payments. Our advice is to stay away from debt unless you get out of your previous debt.
Get to work and wipe your slate clean, get out of debt and you wonât be getting denied for loans anymore! After all, thereâs more to life than debt.