No way around it, rejection is painful. But lenders might have a reason for denying your loan; they need to know you will be able to repay the amount you borrow from them. With some effort, you can turn your credit situation around so that you get approved for a loan you can afford the next time you apply.
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Find Out Why You Were Rejected
Upon reading those “We are sorry but …” words in your rejection letter, you may feel the urge to crumple and pitch the letter into the trash. Instead, read it, in full. That letter has useful information about the exact reasons for your loan denial. Maybe you’re late on paying bills, or the lender feels you’re already borrowing too much compared to your income.
Get a Copy of Your Credit Report
The denial letter also will state which credit bureau the lender used in making the loan decision. And it will tell you how to contact the agency to obtain a free copy of your credit report. Get a copy and check it over closely.
Correct Any Errors You Find in Your Credit Report
Mistakes are not uncommon. If you find any errors on your report, contact the credit bureau. Ask that a corrected copy be sent to any lender that recently received the inaccurate report. Check for errors in your report at the other two bureaus, too.
Get Expert Help
Start by talking with one of our Certified Credit Union Financial Counselors at Azura Credit Union. Members have access to their services free of charge by appointment. Our counselors are certified to assist you with understanding your credit report, setting financial goals, and more. Make an appointment today!
With a little investigative work and some clean-up, you’ll be on your way to getting a “yes” on your next loan request.
