Need A Loan But Keep Getting Declined? Here's What To Do
People who need a loan but keep getting declined might, at one point, feel like they are out of options. Thankfully, there are quite a few things that you can attempt to do if you ever find yourself in such a situation.
The long-term strategy would be working on your credit score and not applying for a loan again until you’ve managed to deal with the reasons why you got declined in the first place. If you urgently need the money, you can try comparing the lenders and finding the ones that work with different credit scores and income.
How To Get Approved When You Need A Loan But Keep Getting Declined
The main thing that you would have to do is figure out why you got declined. After that, you can come up with a step-by-step plan that might include the following steps:
Work On Your Credit Score
The truth is that most lenders want to see a credit score that is over 600. If your score is below that number, then you might want to start working on it.
- Obtain your credit report and make sure that there are no errors in it (if you have found a mistake, then you would have to dispute it)
- Ask your credit card company for a limit increase, but avoid using the card – this will lower credit utilization
- Make sure that you’re paying off your current debts on time (you can set up automatic monthly payments, to ensure you never miss a payment)
- If you don’t have a credit card, sign up for one – you can get a card without an annual fee and use it only for one or two monthly expenses, if you’re afraid of overspending
Wait To Apply Again
Typically, when you apply for a loan, the company representative will perform a hard check. This process is done to check your credit history, but these checks can actually affect your credit score if too many were conducted in a short period.
Your loan application might have been declined simply because there was an error in the form. In such a case, waiting for about a month is advised as you’ll have enough time to find out what the mistake was and correct it.
However, if you have been declined because there were too many hard inquiries, then you would have to ‘sit out’ for about 4-6 months before attempting to apply again.
Get A Personal Loan With A Co-Signer
If you need a loan but keep getting declined, then some lenders will offer you the option of co-signing on a loan. This means that you can apply for the loan alongside a person who has a high credit score and proof of income.
In some cases, this will help boost your application, but you and the co-signer should be aware that you would both be responsible for making the payments. If for some reason, you are not going to make the payment, both of your scores are going to be affected.
Provide something that is going to secure the loan. You can use a car title, a savings account, a cash deposit, and other things that are of value to improve your chances of qualifying.
Choosing The Right Lender
For those who need a loan, comparing the different lenders and their sets of lending requirements is one of the most important steps to finally getting approved.
Tennessee Title Loans, Inc., for example, can offer you a hassle-free vehicle title loan. All you need is your driver’s license or government-issued identification, your vehicle, a lien-free title to that vehicle, and proof of income.
If the car title is not in your name, you can always go to the DMV to get it transferred prior to making a loan request.
Step-By-Step Guide To Obtaining A Title Loan
- Fill out the online inquiry form.
- Wait for a loan representative to call you. Together, you can choose where you can meet if you prefer not to come to the store.
- Once you meet in person, the loan representative will quickly inspect your vehicle and examine your documents. This whole process usually takes only 30 minutes.
- In the case you get approved, you will receive the money the following business day or even the same day.
By the way, you get to keep the car while you’re repaying the loan. Title loans only require the title itself for approval, and anyone can qualify whether they have good, bad, or nonexistent credit.
Get Your Title Loan Today!
If you need a loan but keep getting declined because of a low or non-existent credit score, then find a lender that will allow you to apply even if you have bad credit. Tennessee Title Loans, Inc. welcomes all credit, works with all types of income, and helps make sure that the whole application process is quick and easy.
Don't miss your chance to finally get the money that you need - apply for your vehicle title loan today.Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.