Indeed, being rejected in your application for personal loans can be heartbreaking. However, this will always teach you a lesson about the things that you should do the next time that you apply. Here are the things that you can do to improve your chances of getting your loan application approved:
For Long-Term Strategies
Today, you might be denied a personal loan or credit card. However, this does not mean that you will be denied such an opportunity forever. You can build your credit by choosing small loans that you can be able to pay off on time. With a secured credit card from your bank or licensed money lender Singapore can help you out.
For example, open a savings account from banks that can hold the saved amount as a guarantee for your credit card. Usually, your credit card can have a limit to your savings. Then, you can gradually build up your profile whenever you pay off your balances on time. Sometimes, this will take around six months before you can improve your credit profile.
Look for Other Legal Means to Earn Money
We are always known for our talent and resourcefulness. Everyone is good at multi-tasking. As such, you can always find ways on how to increase your income. Apart from waiting for your monthly salary, you can increase your earnings through tutorials, online writing gigs, and others.
Reduce your Daily Expenses and Prioritize Paying your Debts
If you are used to traveling during the weekends, it is now time to cancel your next trip. Learn to let go of the things that will cause you to have unnecessary spending. Shopping, dining out, and other extravagant activities can be set aside for a while until you have settled off your debts and have saved enough money. This can be a toxic remedy for some. However, you will eventually earn your peace of mind when you see that you are improving your credit score.
Talk with your Creditors
Banks, licensed money lenders, and lending institutions can offer a payment plan that works best for you. There are moments when your debts increase without your control. The lender can have it closed if you can provide 50% of the balance right away. However, be sure that you have substantial cash before you arrange for its settlement.
Lenders like LenderSg would agree on a reduced amount for compensation since the total balance is made up of the principal plus the accumulated unpaid interest charges.
Get a Guarantor or Co-Maker
A colleague or a friend could share the burden of repayment with your loan. A co-maker or a guarantor will help assure the licensed money lender Singaporethat somebody else will take the responsibility of paying the loan when you have defaulted. See to it that you both understand the differences of a guarantor, principal borrower, and a co-maker.
Indeed, improving your credit score can take a few months and you need that personal loan right away. In this example, you can apply for a secured personal loan and offer collateral. However, the downside of this approach is that you might lose your property if you fail to pay your debt.
Provide a Down payment
A down payment is another effective strategy that you can do. This is effective with other types of loans such as mortgages or auto loans. Loans for gadgets and appliances will require you to have a certain amount as an initial cost to pay your loan.
Here are some things that you can do to recover whenever the banks reject your loan application:
Call the Lender and Ask for the Reason of Rejection
It takes only a few minutes to know the reason why. The majority of the lending companies likeLenderSg would send to you the rejection letter. However, a call will immediately clear things out and you can act immediately.
Fix the Errors
If you know the reasons why your loan application has been denied, then you can fix the errors immediately. Have a copy of your credit report and check whether the information indicated is valid. There are some debts that you have settled a few years ago and may appear in the report. If such is the case, call your previous lender for modification. Ask for clearance or debt certificate and present it to the credit bureaus for correction.
Pay your Debts
Make a list of all your debts. Pay off the smallest debt as much as you can. Plan a strategy on how to settle all of your responsibilities.
The Things to Look for in a Personal Loan
Personal loans should help borrowers pay for their emergency needs. There are various lending institutions to apply and get feedback within 24 hours. You can immediately receive a call to confirm the approval of your loan.