You applied for a debt consolidation loan, and you were rejected – what now? The last thing you will want to do is wallow in despair. Not all hope is lost. Consider this a minor setback and the one you can quickly bounce back from.
However, to do this, you will have to do a couple of things. Today, we’re going to give you a few tips on what to do if you get rejected for a debt consolidation loan, so it doesn’t happen again.
1. Figure Out What Happened
The last thing you’d want to do is just accept the fact that you’ve been declined. There is an apparent reason as to why you weren’t able to secure the loan, and you have to find out what it was. If you understand what the problem is, you can do all that is in your power to overcome it, and once you do – you will be able to secure a debt consolidation loan next time around.
2. Improve Your Credit Score
More often than not, the reason why you were declined is that you have a low credit score. In general, you will need a credit score of 650 or higher to secure a debt consolidation loan, so if yours is lower than that – you know what to do. Make some payments and do what needs to be done to improve your credit score.
3. Find Another Option
Just because one lender turned you down doesn’t mean the other one will. You might have to shop around a bit before you secure the debt consolidation loan, and if you haven’t done this in the first place – starting now wouldn’t be the worst thing to do. However, just make sure you don’t fall for any scams. Many out there prey on those looking for their “last resort” only to make their problems even worse. If you don’t know what we mean, just check out this Credit9 review, and you’ll have a better understanding of what we’re talking about.
4. Find A Co-Signer
This might not be an easy thing to do, but if you can, find someone who’s willing to stick their neck out (figuratively speaking) for you and help you secure a loan. In most cases, your family members are your best option. For instance, your parents should be more than glad to help you overcome this rough patch by lending you a helping hand. However, don’t take this lightly. If you know you won’t be able to pay off your debt – don’t put your loved ones in an awkward situation.
5. Try Out For A Secure Loan
If you can’t get an unsecured loan, you could look into getting a secured one. These are the loans that are covered with your assets that serve as collateral if you don’t manage to repay the debt. Once again, unless you’re sure you’ll be able to repay the debt – don’t go for a secure loan, or you might end up losing a car or even a house, depending on the size of the loan.
There you have it. We hope you’ve found these tips helpful.