Why you did not get approved for a loan
If you have been refused a loan you will know it’s a deeply frustrating moment in your life. Having a bank deny you money you need to pay off bills and debts you can drive a person crazy. You might think about turning to a life of crime to get the money you need to make your dreams come true. Trust me this is a bad idea. You really don’t want to do five years in a federal prison, believe me on that it’s not a good time. The better idea is to work to fix your credit so that you’ll get approved for a bank loan the next time you apply. Getting your fiscal house in order is the right play and I recommend you doing everything you can to take care of credit issues you’re dealing with so you can make a fresh start in your life.
The first thing you’ll want to do is get a credit report and see what is listed on it. If you have debts impacting your credit you’ll want to call the people holding those debts and see if you can work out a settlement to pay less on what you owe or work out a payment plan you can afford to pay off the charges and get them removed from your credit history.
If there are charges on your credit card that you dispute you can file a claim to have the charge removed. There are many credit repair services that will help you out with this and will work for you to remove charges that should not be on your credit report. Identity theft is a big problem in the world today and a credit report could show that you are the victim of somebody stealing your identity. Knowing that someone has used your credit without your permission is the first step to finding a solution to the problem and clearing your name and re-establishing your good credit.
Another thing you can do after you’ve have been refused a loan and looked at your credit report is see what credit cards you can apply for and be accepted. Credit report companies want to see you have multiple accounts and be good with your money. If you can get a few cards that have bad interest rates and annual charges this is one of the prices you must pay to help restore your credit. Get these cards and use them sparingly to show the credit report companies you are being smart with your credit. Pay the bills off each month so the interest rates don’t begin to make the debt something you are chasing after. After a year or two of being smart with your credit and paying off debts you should be able to start getting better credit cards with lower interest rates and no annual fees.
If you have been refused a loan it’s not the end of the world. Take it as a wake-up call to finally fix your credit and work hard to get a good credit score.