You may really need a loan from the bank. But most lenders these days are stricter when it comes to approving and providing loans to consumers. No one could blame them. In the last few years, many borrowers have either defaulted on their loans or have incurred delays in payments. Most lenders are also particular about credit scores.
Why were you rejected by banks? This question may be hard to answer because most of the time, lenders do not clearly explain their decision to turndown a bank loan application. It would be better if you would have an insight on the possible causes of the rejection.
Your bank loan application may have been turned down because of thepast defaults on your own credit report. You may currently deal with existingdebts that lenders interpret as signs of possible financial distress. Lastly, your current bank accounts may not have enough savings to prove your capacityto make regular loan payments.
What can you do if the bank said no to your loan application? Do not just wallow and feel resentful. Instead, move on and try alternative options. Here are some ideas.
Prepare for your next loan application
It is time you prepare for your next loan application. You may aim toget a loan from the same bank or from another one. This time, you could makesure your loan would get approved. Begin by getting a copy of your own creditreport. Make sure you have a good credit score. If not, start reducing yourdebts and clearing your financial obligations.
Reorganize your debts
You may consolidate them. Set a personal budgetso you could remain financially alright. You may also seek professional helpfrom financial and credit counselors around. Those professionals could guideyou to better personal finances.
Try other loan options
Do not be surprised that there are many other loan products available today. You may increase your chances of getting approved loan applications. Thefirst option would be the secured or collateralized loans available. Most lenders instantly approve secured loan applications because of the collaterals involved. Secured loans could be enjoyed by consumers with or without good credit scores.
If the need for money is immediate and you could not wait for manymore weeks or months to get a bank loan approved, try other loan providers.There are more than enough non-traditional loan providers in the market todaythat offer loan products that are at par with those offered by banks.
If all else fails, seek financial assistance or help from your family,relatives, or close friends. This could be a little blow to your ego and pride.But make sure you state the terms of the personal loan clearly; have the resolve to firmly stick to those. If you promise to return the amount in a few months,do so. Try to offer paying interest rates so they could provide the assistance without any hesitation. Moreover, try not to ask for too huge amount. Your relatives and friends may also need money for their own expenses.