When it comes to finances, most people are not great at it. If everyone knew how to work with their money, they would all be millionaires. Although there are other factors at play that are beyond your control, you should be able to grow your money if you have the knowhow.
In some cases, it is also true that you need money to make money. Your groundbreaking idea could be your ticket to riches, but when your personal loan is rejected, your hopes and dreams go up in flames. Luckily, you don’t have to wallow in defeat. There are things that you can do to get that loan approved.
Find out why your loan was rejected
Loans are not rejected because the bank or service provider doesn’t like you. There are always legitimate reasons why loans don’t go through. If you are denied, your lender needs to provide you with the information they used and explain how it was used against you.
They also need to provide you with a means to get your credit report and dispute inaccurate information. When you read the report, you’ll see where your bad records come from or provide them with extra information and statements that prove the inaccuracies.
Get your act together before you apply again
Your credit record is constantly in flux and if you can prove that you are not a risky borrower, you’ll be more likely to be awarded your loan when you reapply. You don’t have to play a guessing game either.
You can ask your lender what debt-to-income ratio they require and work towards maintaining that ratio. If you are unsure about what aspects influence your application, your lender will be glad to tell you where your shortcomings are.
Although you have that annuity that you have been saving, you could use a structured settlement calculator to see how much you could get paid out. You have to count the cost and determine whether a payout now, will be of more value to you than a couple of years down the line.
Don’t be afraid of short-term solutions
When you are in a bind or when time is against you and you need that loan, you could always opt for short-term strategies to get you that loan.
Putting down a large down-payment will generally do the trick if you want a home loan approved, but when it is a personal or business loan, you can also opt for other measures. Putting some assets up as collateral, or having someone co-sign for you will build faith and generally get you in the clear.
Start building on your long-term strategies
Although this is not necessarily going to get you the loan you want right now, working on long-term strategies could help you in the future.
Building your credit and showing lenders that you are a reliable candidate works wonders with lenders. They can track your record and instill some faith in your abilities to pay back the loans. Although this is easier said than done, you could try and increase your income as well. But the best solution would be to pay off your current debt.
People are often in a hurry to loan money because they are impatient. When you get rejected, it might be a good time to reflect on whether the loan is for something that you want, versus something that you need.
Generally, the load goes towards things that are not essential. When you learn to be content and know what you can live with and what not, choosing to go into debt becomes so much easier. You will also generally find that you’ll be able to afford the down payments a lot easier.