When money is tight, there’s one thing you can rely on – a personal loan. Banks are usually happy to accept an application as long as the applicant is deemed trustworthy. Then, you can use the cash to rebuild your finances and steadily get out of debt one step at a time.
But, what if a lender won’t process your file? What are your options?
You can try other creditors, such as a family member, yet they might not be able to help. The best option is to make sure you don’t get rejected, and here are the tricks of the trade which will help.
Check Your Rating
Lenders use credit ratings to figure out whether a loanee is eligible for a loan. If yours is bad, there’s a good chance it will get rejected very quickly. By checking it beforehand, you can decide if it needs some work. Should it require rebuilding, there are things you can do to ensure it goes up in the future. For example, paying debts on time, even if it’s the minimum amount is a basic yet effective hack. Money Facts UK has nine more steps you can follow if you need extra advice.
Provide Basic Info
And as much of it as possible. As well as a credit score, lenders use things such as names and addresses to perform a background check. Therefore, a lack of information won’t go in your favour. Also, double check the application before sending it off for appraisal. Banks, in particular, reject stuff out of hand if they don’t have the correct details at the time of filing. This means anything from a new address to a new job. It also includes spelling mistakes, so make sure they are zero. If you can verify them with references, that’s a bonus.
Try Non-Traditional Lenders
Banks have a strict policy which they follow to the letter. As a result, securing a loan can be tough if you have a few things which don’t look good on paper. Fast Loans UK is different as it says yes where others say no. Don’t worry because it isn’t a scheme. They have quality control managers to help accept applicants others might find risky. A credit union is another option. Created to help people in debt, it won’t turn its back if your credit is poor and you struggle to get through the month. Of course, always avoid loan sharks as they are dangerous and unscrupulous.
Offer Security
The definition of an unsecured loan on Money Supermarket is: “Unsecured personal loans are available to would-be borrowers… you do not have to be a homeowner to apply.” Therefore, there is no need to provide an asset as collateral. To a bank, this is a risk and they might reject your application. By filing for a secured loan agreement, such as a mortgage, it gives them more security and means they are likely to accept your offer.
Valuables to consider securing against a loan include a house, a car, or jewellery.
