The Bank Refused My Loan And Declined It! What Else Can I Do?
“I need cash to pay for medical bills, but the banks refused my loan!” If this happened to you, you’re not alone. Millions of Americans are struggling from income loss and higher inflation, but at the same time, banks are tightening credit requirements. It can be frustrating, especially when you have an urgent financial need.
If a family member is sick or the car you use for your job broke down, then the problem gets bigger with every passing day. So each time you are dealing with getting a loan declined, your costs actually go up because of deteriorating health or continued income loss. Check out this guide to learn the common reasons loans get declined and what you can do about it.
What You Can Do If A Bank Refused Your Loan
Make Sure You Were Given A Notice
After stressing about how the “bank refused my loan,” the next step you need to take is to understand why you got your loan declined. One thing to note, whenever a bank or any financial institution declines your loan, they are required to give you a notice that lists all the reasons you were declined. Take this notice and study it.
If it says that there was an issue with your credit, you’ll be able to fix it and reapply for a loan once the problem is gone. If your credit is too low for the loan you want, you’ll know that you need to work on increasing your score before you apply for another loan. Whatever the problem ends up being, it is important you know it so that you know what exactly to work on.
Check Your Credit Report And Fix Issues
Once you’ve studied your notice, the next step would be to look at your credit report. The financial institution you are trying to get your loan from can give you a copy of your credit report absolutely free. If you are sitting there asking yourself why the “bank refused my loan,” your credit is the most logical place to start.
You might notice that there is an error that you need to dispute with your credit bureau. Or maybe you notice that your credit score is low and there is some work that you need to do on your part to bring up that score. The point is, you’ll never know what you have to do if you don’t know what is on your credit report to begin with.
Find A Co-Signer
If you are dealing with a declined loan, don’t stress and ask yourself why the “bank declined my loan” when there are other options you can take. Try finding someone reliable to co-sign your loan. Having someone with a good credit history and financial situation co-sign your loan, you have a much higher chance of getting approved – maybe even for more than you anticipated.
Try A Car Title Loan
Banks are not the only provider of loans. Instead of going to a bank, you can look into getting a car title loan instead. We here at Nevada Title and Payday Loans, Inc. are a registered lender with a reputation for easy application, friendly credit requirements, and efficient customer service. If you have a lien-free car title and a vehicle in your name, you can see if you qualify for this loan.
We understand that your financial needs are urgent and you need the cash as soon as possible. That is why we simplified the process so that it’s convenient and efficient. Just fill out the online form on our website to get started with our simple process. The form is sent to the nearest Nevada title loan location and you’ll receive a call from a loan representative who will help you out.
Common Reasons Why Banks Refuse A Loan
Your Employment History Does Not Meet The Requirements
Banks will look at your employment history to determine your capacity to pay. Unfortunately, they have a very narrow definition of what a “secure” job is and what isn’t considered secured. If you are a freelancer, a contract worker, or have several part-time jobs right now, they consider this as a risk — even if you are earning enough to pay for the loan.
Banks will also look at how long you’ve had a job or if you have any gaps in your employment history. If you lost your job during the pandemic, but just got recently hired at a new company, then it doesn’t matter how much you make for that company right now; in the eyes of the bank, you’re still a credit risk because you don’t have an extensive job history yet.
You Have Not Been Able To Establish A Credit History
If you don’t have any debt and are asking why the “bank refused my loan” then it might be because you have yet to establish a credit history. If you have never taken out a loan before, or do not have any credit cards, you may not have bad credit, but there’s not enough information to establish your creditworthiness. In this economy, that’s enough reason for having a loan declined.
Raise Emergency Cash Even If The Bank Refuses You
If you’ve been asking yourself why the “bank refused my loan”, don’t keep dwelling on it. Instead, use these tips to better prepare yourself for the next time you try to get a loan. And if you really need the emergency cash quickly, check out a car title loan from us at Nevada Title and Payday Loans, Inc. today! Fill out the online form to get started on the process right now.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.