I Need A Bank Loan But Keep Getting Declined! What Are Other Options?
When you desperately need a loan, a declined loan can be devastating. There’s a slew of reasons for having a loan declined, including a low credit score, a high debt-to-income ratio, and previous financial issues like bankruptcy. The good news is you have options. If you keep getting rejection notices for a bank loan, consider these options.
Consider These Bank Loan Alternatives To Get Cash
Get A Second Opinion
If you need a loan but keep getting declined, one approach for many is to work with your bank. Sometimes this helps your chances; but if a bank has rigid loan rules, your good standing won’t make a difference. A good first approach after having a loan declined is to compare lenders and loan requirements to learn about your personal loan options.
You can see if there’s more wiggle room within other banks’ loan requirements that your current bank does not offer. Try getting recommendations for different brokers or compare rates on a website that compares lenders. Searching for such additional lenders does not impact your credit score.
Get A Co-Signer
Getting your loan declined can happen easily if you have insufficient income or a lack of credit history. A co-signer with impressive income and a great credit score makes scoring a personal loan far more likely for you. Keep in mind that if you go this route, both you and your co-signer are responsible for loan repayment.
Look For Lenders Who Look Beyond A Bad Credit Score
While there are many banks that automatically reject those who need a loan but have bad credit, having a loan declined is typically less of a possibility if you go with an online lender who offers small loans. These lenders are usually more flexible about payment options and terms and conditions of the loan. Credit unions may also be more likely than a bank to approve a personal loan.
Review Your Most Recent Loan Rejection
Banks are required to send decline notices to those who need a loan, and reasons for getting your loan declined are typically easy to locate on such notices. You can also get a free copy of your credit report at the same time. In addition to working on the major reasons for the decline notice, carefully review your credit report to see if there are any errors related to your financial history.
Try A Credit-Builder Loan
If a bank loan seems out of reach but you still need a loan, an alternative is a credit-builder loan. With this type of loan, bank account funds are held by your lenders while you make payments on time. This helps improve your credit score; and if you make all of your payments on time, you get your loan amount right away.
Ask For A Smaller Loan Amount
If you keep getting rejected for the same loan request and find that you still need a loan, part of the reason is that what you’re requesting is too big compared to your income and debt totals, leaving banks feeling unsure about lending to you. Instead, ask for a smaller loan amount. Sure, you may have to spend more time reaching your financial goal, but it will be a start.
You may need to bring more to the table to make a potential lender feel more comfortable if you need a loan and can’t face another loan declined. Common forms of collateral include your house, a larger cash deposit, or funds from a savings account. Remember that this approach is sometimes risky since lenders can make a move to seize the collateral if you struggle to repay.
Opt For An Online Title Loan For Emergencies
Getting denied time and time again for a bank loan can leave you wondering if you’ll ever become financially stable and reach important goals. If you’re searching for ways to cope with a sudden financial emergency, an additional option is an online title loan from Southwest Title Loans. An online title loan uses your vehicle’s title as collateral for a lump sum of cash.
It can take as little as 30 minutes to find out if you qualify for a loan of up to $15,000, and we won’t automatically turn you away if you need a loan and have bad credit. It’s easy to get started. Fill out the online form on our homepage and one of our loan representatives from the nearest title loan location will give you a call to answer your questions and guide you through the final steps.
Get The Help You Need With These Options
If you need a loan and are at risk of getting your loan declined, you may be wondering if you’ll ever improve your financial well-being. If you’re still struggling to address a financial emergency, consider an online title loan from Southwest Title Loans to help you out. Fill out our online form on our website to get started on the process.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.