Whenever many consumers need cash, it never seems to be there. Even though they really need it, folks looking for a fast bad credit personal loan are sometimes rejected. The reasons for rejection are many and some are even peculiar to particular lenders. Here are some general considerations if you have been rejected for a fast bad credit personal loan.
Poor Credit History
Many lenders, especially traditional lenders such as banks and credit unions, will reject applicants with poor credit histories. However, there are private lenders who have recognized the market and have stepped in to fill the breach. Bad credit can occur due to late or nonpayment of bills, bankruptcies, etc. If having bad credit was indicated as the reason for rejection, you should go online and find a wealth of lenders who give little or no consideration to credit scores.
Too Many Dings on Credit Histories
If you are simultaneously applying for many loans, you are going to have a bunch of lenders looking at your credit reports. Lenders do not like to see borrowers who have had a bunch of recent inquiries into their credit records. Someone looking for a personal loan, seeking to get a credit card, or applying for some form of financial assistance is seen as a dangerous risk. Borrow only what you really need and apply with lenders one at a time. Once you do land a loan, repay it according to the contract and you will raise your scores and show new lenders that you are a good risk.
No Credit History
Sometimes it seems that no credit history is worse than bad credit history. And it is sort of a catch-22 situation. You apply for a loan and are rejected because you have no credit history, yet no one will lend to you so you can build a credit history. A good way to start a credit history would be to apply for a store card or get a secured credit card. Both are easy to get and after using them and paying them off in full every month, you will start to build a history that lenders can work with.
Depending on the size and type of loan, often borrowers are rejected because they have no decent collateral, or valuable property, to secure the loan. A secured loan is backed up by property, usually real estate or a late model car, so that should the borrower default, the lender can seize the property and sell it to cover the cost of the loan. Some types of collateral are not even worth considering. If you had bought a $2,000 plasma screen television and offer it as security, that television is going to not be worth half of that after a year; it is of very little value to the lender as collateral.
Employment and Salary
If you do not have a job along with a reasonable salary, you will often get rejected. If you are making $1,500 a month and it is generally known that the cost of living in your area is going to eat up every bit of that, you will be rejected. One way around this would be to enlist the aid of a trusted family member or friend as a cosigner. The cosigner should have a decent salary and a better credit history than you.
Just because you were rejected by one lender does not mean that no one will approve your loan. Keep shopping. You will eventually find a lender willing to offer you a fast bad credit personal loan. Every time you are rejected, ask the lender the reason. Then take a proactive approach, fix the problem, and apply again.