If the lender says no…

Review these reasons why a loan many be granted, and then see the seven 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? Establish credit by applying for a credit card with a low credit limit.
  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 the credit bureau made any are errors in the information they provided the lender.

If a lender turns you down, don’t take it personally; lenders can’t grant or deny credit based on personality. Also, the Equal Credit Opportunity Act promotes credit for all applicants who qualify.

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