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

  1. Irregular employment
  2. Not enough income to repay the loan
  3. Poor credit history (slow repayment of other loans)
  4. Lack of credit history
  5. Too short a time at residence
  6. Insufficient down payment

Steps you can take to have the lender reconsider

  1. No prior credit? Apply for a credit card with a low limit, make small purchases and pay on time.
  2. Find out if all sources of income were considered in evaluating your application.
  3. Pay off some of your existing debt.
  4. Find a reliable co-signer who is acceptable to the lender.
  5. Offer to make a larger down payment if possible.
  6. No credit history? Find out if factors such as payment of rent or utility bills could be considered.
  7. 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.

Click the Next button to continue.