Has Your Loan Application Been Denied? Try This

Let us say you put in an application for a personal loan, and that loan was denied. You may need that money urgently for something. Perhaps you need it because your car needs repairs, or maybe you have some pressing medical bills.

You can find the best loans in Utah if you look around and see what banks and credit unions offer them. Before you apply again, though, you should take some steps that will make getting the loan more likely.

Try to Improve Your Credit Score

If a lending entity denies your application for a loan, then many times, it’s because you don’t have great credit. There are some entities that will give you a loan even with poor credit, but if you utilize one of them, you will more than likely pay an exorbitant interest rate. That’s something you definitely want to avoid.

Attempt to raise your credit score by paying off any outstanding debts before you apply for another loan. You can do that by paying off any credit card debts you have. Your credit utilization ratio is a major part of what goes into a credit score, so paying off that debt should boost your score a bit.

You might also raise your score by asking for higher credit card limits. If the companies grant them to you, you will be using less of your credit utilization ratio.

Look for a Co-Signer

You might also think about going in on the loan with a co-signer. If you have someone in the immediate family with solid credit who is willing to cosign on a loan with you, the credit union or bank you’re using is much more likely to grant you that loan.

You will need to find someone who trusts you enough to cosign that loan with you, though. If you get along well with someone in your family who also has stellar credit, they are probably your best bet.

Get a Job that Gives You a Steady Revenue Stream

If you approach a lending entity, they want to know that you’re likely to pay them back on time. They look over your credit score as part of how they determine whether you are a suitable candidate, but they also look at whether you have a steady job or not.

You might do some kind of work where you don’t get steady paychecks. If you can’t show a dependable income stream, that’s the kind of thing that might prohibit a lending entity from giving you the loan you want.

Apply for a loan again once you have a job where you can show consistent paychecks for several weeks in a row. If you demonstrate that you have that kind of financial stability in your life, a lender will likely see you as a more acceptable candidate.

If all else fails, you might also think about getting a secured loan. If you have something valuable you can put up as collateral, this becomes a more viable option.