Bad Credit Loans - What to do if Denied

If you have applied for cash loans Lakewood or elsewhere, and you were denied, you need to start off by looking at what the reason was for that. Lenders refuse an application for various reasons. If you submitted the application too late for example, or did not supply the information they asked for, or do not have an income. If the refusal was due to your bad credit history they will send an adverse action letter that explains. Here is a look at what to do from this moment when you still need a loan.

 

Review the letter of refusal and your credit report

Look carefully at what the letter says. You have the right to get a free credit report to see what might be there. Things that would have led to a refusal of personal loans Toms River include;

 

●     Not having enough credit history

●     Having gone through a recent bankruptcy

●     Having a credit score that is too low

●     Having too much current debt

●     Having a history of making late payments.

 

You can then take some steps to fix or change things. For example, if your debt-to-income ratio is too much you could look at raising your income, or paying off current debts. You can also look to improving your credit, using a different lender or getting a cosigner on the loan.

 

Other loan options

If the issue is bad credit history there are other options when looking for cash loans Lakewood. They include;

 

●     Family loan - borrowing from family or friends comes with some concerns if you are not respectful of them and making payments, but it is the easiest option and comes with little risk.

●     Credit cards - you can get cash out using a credit card but care should be taken. Some have high interest rates and they might not have a high credit limit so there is only so much cash you can get.

●     Financial assistance options - there are a few things you can do to save some money. Using food banks and asking for rent assistance are two examples. There are federal, state and local programs to check out.

●     Pawn shop loans - are small secured loans basically. You need an item of value that is worth around twice what you need for a loan. You also need a pawn shop that will accept that item and offer a loan.

●     Paycheck advance - some companies will give you an advance or you can take out a paycheck loan. You just need to be sure you can pay it back and manage on a lower amount of money the next month.

 

Change your bad credit score

When you are denied personal loans Toms River you should start to work on improving your credit score. It takes time but things can get better. Make payments on time, meet the minimum payments, avoid going over your credit limit, keep an older account open, limit how often you apply for loans that require credit checks, diversify your credit and use less than 30% of the credit that is available to you.