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
- 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? Establish credit by applying for a credit card with a low credit limit.
- 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 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.
Click the Next button to continue.