What To Do If You Are Refused A Personal Loan
It has become increasingly difficult for individuals to be accepted for personal loans or other form of credit, as banks, building societies and other loan companies continue to restrict their lending policies and tighten lending criteria.
As a result of this, a large number of people, many of whom have always been accepted for credit in the past, are now finding that they are being rejected when they apply for a new personal loan or credit card.
There is likely to be an increased number of loan applications throughout the course of January as people struggle to find ways to pay for the overspending they did at Christmas and it is also likely that a higher than normal percentage of these will be rejected by their prospective lender.
In these circumstances, many people will simply move on to the next loan provider and apply with them and carry on this route until they find a company who will accept them, but borrowers are now being advised that this is not the best course of action to take.
If you have been rejected for a personal loan, or credit card, it is advisable to wait at least three months before re applying to another company, as each lender will carry out a credit score on every application. Each credit score and every rejection will leave a mark on an individual’s credit record, reducing the overall score and making it even harder to be accepted for the loan they require.
The other good piece of advice for someone who has had a loan rejection, is to obtain a copy of their credit file from one of the three major credit rating agencies (details of which can be found on this website). This will show an individual’s credit score and also if that person has any black marks against their name, such as missed payments, defaults or County Court Judgements.
If there is anything outstanding, this gives the person the opportunity to bring any outstanding accounts up to date and repair their credit record, giving them a better chance of success in three months time, when they re apply for a personal loan.
