If the lender says no…
Here are 6 reasons a loan may not be granted mixed with 7 steps you can take to have the lender reconsider.
Reasons a loan may not be granted
- Irregular employment
- Not enough income to repay the loan
- Poor credit history (slow repayment of other loans)
- Lack of credit history
- Too short a time at residence
- Insufficient down payment
Steps you can take to have the lender reconsider
- No prior credit? Apply for a credit card with a low limit, make small purchases and pay on time.
- Find out if all sources of income were considered in evaluating your application.
- Pay off some of your existing debt.
- Find a reliable co-signer who is acceptable to the lender.
- Offer to make a larger down payment if possible.
- No credit history? Find out if factors such as payment of rent or utility bills could be considered.
- Find out if there are errors in the information the credit bureau provided to the lender.
Note: If a lender turns you down, don’t take it personally. Read about the Equal Credit Opportunity Act (ECOA) and your rights as a borrower.
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