What to do if the bank won’t give you a loan!

If you’ve faced the disappointment of a loan denial, here are some steps you can take to address the situation:

Identify the Reason: Before reapplying for a loan, understand why your lender denied your application.
Common reasons include:

  1. High Debt: If your debt-to-income ratio is too high, lenders may refuse your request.
  2. Low Salary: Insufficient income to cover both necessities and debt can lead to rejection.
  3. Career Changes: Frequent job changes might affect your loan eligibility.
  4. Debt Collectors: Owing money to debt collectors can be a red flag.
  5. Poor Credit Score: A low credit score often results in loan denials.
  6. Inadequate Down Payment: For mortgages, a minimum down payment is required.
  7. Low Home Valuation: If the home’s market value is less than the selling price, your loan may be denied.

Solutions for Approval:

  1. Lower Your Debt: Create a budget, listing your income and expenses over two months. Reducing debt will improve your debt-to-income ratio. You may want to get a FREE ASSESSMENT to see if you qualify for debt counselling.
  2. Check Your Credit Score: Correct any errors and work on improving your credit rating by paying bills on time. Get your FREE CREDIT REPORT.
  3. Stabilize Employment: Lenders prefer stability; having the same employer for at least two years can help.
  4. Address Debt Collectors and those hounding you for money: Resolve outstanding debts to enhance your chances. Contact ScoreRepair for a no obligation Payment Renegotiation Plan.
  5. Save for a Deposit when buying an Asset or a Down Payment for a Home: Ensure you have the required deposit when buying an car or furniture or a down payment for a mortgage.
  6. Assess Home Valuation: If the home appraisal falls short, consider covering the difference.

Remember, persistence and understanding the reasons behind the denial can lead to better outcomes.

 

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