It can be very disappointing when you applied for a loan and have been turned down, particularly when you need urgent money. Your problems may seem very bad, but you shouldn’t give up in any cases. There are other places and lenders which can give you a loan. Sometimes even the bank, which has previously rejected you, can lend you money. In accordance with Equal Credit Opportunity Act all the lenders that refuse to give you a loan due to your bad credit history must provide you with a written report, where they explain why your application for a loan was denied. If they used this report to make a decision, you can get a copy of the report with no charges under the Act. When you have got the report explaining for what reasons you have been rejected, you must read it attentively in order to know these reasons. Make sure that you ask questions, if you don’t understand anything. After the decision was made, you have 2 months to ask for a report with your credit history, in case if this report was a base for denying your application. There should be directions on how to order a report in the letter of the lender. If while examining the report, you find out that there are some mistakes in it, and these mistakes have influenced the lender’s decision, you must ask your credit bureau to correct the mistakes. After you receive the revised report, send it to the lender for overvalue (it is a free option for you). Keep an eye on the lender in order to make sure that your application for a loan was reviewed due to the new credit report. If you have been rejected because of the bad credit record, there are some methods to make it look better. For instance, if you previously had some due accounts, renew them, so that your credit rating can improve. In case of being turned down because of non-compliance with income demands, you should apply for a “lower sum of money” loan, or find a loan that has not so tough income demands. If your debt-to-income proportion is high, your application will be probably also denied. High debt-to-income proportion means that the level of your debt is much higher than the level of your income. Lenders always examine this proportion in order to know if you can cope with a bigger debt. By having a high proportion, you have low chances to receive a loan, even by having a perfect credit history. Try to repay some part of your debt before asking for a loan.
I will be excellent, if you have a guarantor that has a low level of debt and a good credit record, when applying for a loan. In this case you will have a higher possibility to be approved for a loan. You should act cautiously, when you choose a guarantor, since he will be responsible for paying off the loan instead of you, if you are not able to repay it. You have other alternatives for getting a loan rather than addressing to a bank, for example, cooperating with an auto dealer or a realtor, who can find you a loan. They may be more informed about the lenders that can help you. You should surely tell a realtor about your problems, particularly which lender didn’t approve you and why he didn’t do it. So an expert can choose an appropriate lender for you. You must consider an option to go to a large bank. Regardless whether you will be approved or not, you should try apply for a loan there. But the term of the loan should be not more than 30 days. Your credit record won’t be damaged by credit rating agencies, if you will ask for car or mortgage loans with 30-days term of payment.