Are you facing a Personal Loan rejection? A rejection can be disappointing, especially if there is an urgent need for funds.
However do not feel disheartened. There is an option of applying again as long as you know and understand the steps you need to take to turn your rejection into an approval.
There could a number of reasons for the same; an analysis could help you to deal with the situation.
Since the Economic Meltdown of 2008, most Banks / Financial Institutions have become extremely conservative creating systems to keep defaults under check. The personal loan being an unsecure loan; strict guidelines have been put in place as a result.
Hence before reapplying, or even applying for the first time, It is important to consider the following steps carefully:
- Firstly get the facts of why your loan was rejected from the agency. If the reason is not a valid one, you could ask for a relook or a reassessment of your loan application.
- A healthy credit score of over 720 points or more is needed for an approval.
- Check your credit score for any errors; at times there could be a wrong entry under your profile causing your score to decrease (Persons with similar names & date of birth could cause a wrong entry).
- A Credit /Loan transaction has not been reported to CIBIL by the concerned Bank.
- Another major reason for rejection could be a verification issue. Hence all contact numbers & address provided should be valid & operational.
- To be safe, give additional contact numbers (for yourself/workplace). Be careful to give a correct email id that is updated as per record.
- Documents provided to the Bank should be clear & authentic.
- In case you find your credit Score is below the mark, the following steps can be taken to improve your score:
- Pay all Credit Card bills by the due date.
- There must be enough balance in your account before your Loan installment is due to avoid the payment to bounce.
- In case there is a bounce, even if the money is credited thereafter a it will show in your credit history. So take your payments seriously.
- Use your Credit Cards carefully. Maintaining a 30% usage is ideal.
- Do not make indiscrete applications for Credit cards or Loans.
Remember that you need to be realistic. Check your eligibility & do your homework before applying for a loan.
If you need further guidance about applying for a loan, reapplying, to check eligibility or even if you have any query, feel free to reach us at www.yourloanadvisors.com.