5 steps to take if your personal loan application is rejected

Published on: 15 October 2019 Last Updated on: 25 January 2024

Ever applied for a loan, only to get rejected? Having your loan application turned down can be a discouraging experience, especially for first-time borrowers. Or, you may have taken loans in the past and wondered why your recent application wasn’t approved.

The truth is that there are a variety of reasons that can affect your personal loan eligibility. Often times, it’s just one main issue, but other times, it can be a combination of reasons. If you aren’t sure why your loan application got rejected, you can use a personal loan eligibility calculator to check what was the shortcoming in your personal loan application. Read on to find out what you should do to increase your chances of approval in the future.

1. Check the lender’s eligibility criteria

All banks and lenders have a basic criteria that determine whether a borrower qualifies for a loan. The main reason why most people’s loan application gets rejected is that they did not meet all the lender’s criteria.

The eligibility criteria for a personal loan include age, income, location, credit score, employment, and other factors. Lenders will clearly mention this eligibility on their website or app. Generally, banks have stricter eligibility criteria and only accept applicants with a higher salary and excellent CIBIL score, whereas digital lenders have wider eligibility criteria.

If you have read through the lender’s eligibility criteria but still aren’t sure whether you qualify, use a personal loan eligibility calculator.

2. Improve your CIBIL score

CIBIL score is a summary of one’s creditworthiness based on their credit history. Although the minimum CIBIL requirement varies from lender to lender, one of the reasons that your application may have been rejected is because your CIBIL score is too low as per the lender’s eligibility criteria.

Check your CIBIL score from the CIBIL website. If it is less than 650, you should work on improving your score by using a credit card. Spend responsibly and pay your card in full before the due date. This will help increase your credit score.

3. Make sure your outgoing expenses are low

One of the reasons that lenders will reject a personal loan application is because the applicant has too many existing debts, and for such a borrower, taking on another financial burden would increase the chances of default.

Take a look at your finances and see if there are any expenses you can cut back on. If you have a lot of existing debt, work on repaying them off before you apply for a new loan.

4. Provide the correct details

Loan applications can get rejected if there is even a small error or a signature mismatch. Ensure that the details you provide in the form are clearly written/typed out, and most importantly, correct.

Providing false details about your income, identity or credit score will certainly be detected by lenders, and this is another reason why many applications get rejected. Be honest in your application form, as some lenders are willing to accept applicants with less than perfect CIBIL scores or incomes.

5. Apply for a lower loan amount

Due to your current financial capacity, you may not be able to take on the responsibility of paying back a huge loan. If you’re still in desperate need of a loan, aim for personal loans singapore as it makes the best offerings in financial capacity. Aim for around 40% or less of your net monthly income.

Conclusion

Don’t feel disheartened if your loan application got rejected. Follow the tips above in case your loan wasn’t approved this time, and re-apply after 90 days. If you aren’t sure whether or not you qualify for your desired loan amount from a lender, be sure to check the eligibility criteria for more information. You can also use a personal loan eligibility calculator to check for your loan eligibility.

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Important Things You Need To Know Before Filing For Bankruptcy

The aftermath of the COVID-19 Pandemic saw a string of businesses file for bankruptcy. The United States saw many B2B businesses including, FTK Worldwide (Jewellers), Contact Transport (Logistics and Supply), and others opt for the bankruptcy route. Legal experts are of the opinion that no two bankruptcy cases are the same. They differ in terms of their exposure, risks, legalities, and the court judgment. Even if two companies file for bankruptcy under Chapter 7, their judgments and orders can be different. In this article, we speak to a leading bankruptcy Birmingham law firm that specializes in these issues. we ask them about some important things businesses and their owners need to keep in mind before filing for bankruptcy. List of Important Things you need to know before Filing for Bankruptcy 1. Chapters 7 and Chapter 13 are Important for Individuals and Businesses Legal experts suggest that solopreneur ventures and sole proprietorships that are individual-centric should go for filing bankruptcy under Chapter 7. This puts a stay to debt and credit obligations and allows individuals to even retain control over their property. Businesses that are well-established should opt for Chapter 11. This helps in keeping the business entity alive and allows for a payment restructuring plan that works to ensure complete repayment over a period of three to five years. 2. Hiring Legal Help is of High Importance It is important to understand that individuals or businesses looking to file for bankruptcy should always avail of expert legal help. If you are trying to use Google to do all the paperwork, you might get into serious trouble in the near future. Bankruptcy laws are incredibly complex and technical. In particular, Chapter 7 allows liquidation of debt to take care of financial obligations and absolve the individual from repayment. All collection attempts must stop. Subsequently, a bankruptcy trustee collects non-exempt valuable assets and sells them to pay off debt. The law discharges eligible debts, such as credit card loans, medical bills, and old utility bills. So, you need an experienced bankruptcy attorney to help you fend off the debtors, and work with the courts and the banking institutions. At the end of the day, you do not want criminal proceedings to be initiated by any of the parties. You can hire an expert in your area, such as a Florida Chapter 7 bankruptcy lawyer. A bankruptcy lawyer’s job is to help you overcome debt, so they’ll guide you through the process by offering advice or assisting you in filing for bankruptcy protection. 3. Bankruptcy does not mean All Debts go away If you were under the impression that bankruptcy is going to help you walk away scot-free think again. Legally, the following are some areas where bankruptcy will not be able to help you- Alimony Payments Student Loans Taxes on Luxury Items Taxes Child Support Payments All the above-mentioned areas and payments are not something that the court can give you relief from. If you miss your payments or taxes, new legal cases can be brought up against you in a court of law. The punishment and legal repercussions for the same will be different. For this reason, it’s a must to talk to an experienced attorney and a personal financial advisor who can help you determine other options for addressing these problems. Social workers and community leaders can also help. The government and private sectors offer programs for citizens needing financial and social support services. They’ll help you get through difficult times, so don’t hesitate to consult them. 4. Your Credit Score will get Affected Post-Bankruptcy According to leading legal experts, ten years is the period where your credit score will carry the blemish of your bankruptcy declaration. If you are looking to get loans or credit during the period, the same might get very difficult. You need to be prepared to address the credit score. Some lending companies may offer you a personal loan. But the interest rates are high. You can take the risk to recover gradually from poor credit standing. However, you’ll have to make sure that you pay your loan on time. Fortunately, there are some professional services that have come up in recent years that can help you improve your credit score within a short period of time. If you want to get back in the game, you can always avail of such services. 5. Bankruptcy can help you give Yourself a Fresh Start in Life and Business- It can be stated that most businesses that suffered because of the pandemic did so for no fault of their own. In such instances, legal experts suggest that bankruptcy can be a sound tactical and strategic decision that can be taken by businesses and individuals. Banks, lending institutions, and even the judges that will be hearing the case are already aware of the drastic and negative economic fallouts of the pandemic. In fact, there have been cases, where the banks have discussed with lenders and worked out a positive restructuring plan to help individuals and businesses affected by the pandemic. The Bottom Line Filing for bankruptcy can probably the single hardest decision you would have to take in your entire life. However, rather than make the decision an emotional one, it is best to exercise reason and proper judgment and take help from an experienced legal attorney to find your way. Read Also: Debunking 7 Notorious Bankruptcy Myths What are the types of debt that can be discharged in bankruptcy?

Emergence Of Online Trading: 4 Crucial Benefits

After the surge of the pandemic, there has been an increased use of the internet to commence business. This is because it allows people to trade easily and bring about a series of buying and selling stocks and bonds. Also, with the rise of internet users in the world, especially with the rise of smartphones, trading has become easy. Therefore, in the next section, we will discuss the crucial benefits of online trading. This will allow you to earn a lot and build a future after buying stock as per your investing strategy. Conversely, you can educate yourself on different investment options and ways to earn higher income from the market. That is why, from youth to old ones, everyone today is interested in the stock market and how it behaves accordingly. This eventually helps everyone to invest their money safely. You can also learn about xauusd hoy from the Roboforex website. So, kindly look down to begin the discussion. Benefits Of Online Trading As discussed earlier, there is a growing trend of using online platforms to trade. In simpler terms, purchase and sell stocks and bonds. This is because you can get better returns from stocks rather than the interest rates of banks. Leaving aside, here are a few benefits of online trading - Educate Yourself One of the biggest benefits of online trading is that with online trading, you can learn a lot about stocks and bonds. This will help you enhance your knowledge of different investment strategies. Eventually, it will help you to earn bigger profits from the market. Moreover, you can learn about trends and analyze market behavior to spend money better. Hence, with the help of online trading, the modern youth can gain interest in trading and focus on a better future. So, educate yourself with different patterns and enhance your trading skills. Monitor Your Investments Another benefit lies in the fact that you can monitor your investments on the online platform. This allows you to know what you have bought and sold on the market. Also, you can see how your stocks are performing throughout the day. Consequently, within the comforts of your home, you can predict the market behavior and spend accordingly. In other ways, you can invest in stocks and bonds by casually sitting in your room or when you are in your gym. In addition, you can track them from any digital device and follow them properly. Decentralizes The Trading Process When it comes to online trading, no premium holder controls the market. In other words, there is no middleman in the process of buying and selling. This means you will have access to all stocks that are available on the stock exchange. There is no little broker communication who will guide you to stocks and bonds and help you to purchase and sell them. Consequently, this means you can spend less money on the broker fees. Conversely, you can spend that money on the purchase of stocks and bonds. Hence, online trading platforms give more benefits and help to enhance your purchase resume. Fast Track Your Transaction Process Another feather in the flock will be the ability to fast-track your transaction process. This way, you can buy and sell stocks in a much easier way. Imagine you saw a bond or stock. You don’t have to go to the broker to buy and sell the stocks and bonds. You can simply select the stock and purchase it. Hence, you don’t have to worry about going to the New York Stock Exchange to sell stocks. With just one click, you can easily see your stocks. Consequently, it saves you valuable time and energy and helps you earn more profit. Online Trade Is The Future In the end, we can agree that online trade is the future. This is because it will bring forth more audiences to trading platforms and allow them to buy and sell stocks. Also, with online trading, you can fast-track your transaction process, which will help you to buy and sell stocks. Hence, you can plan your investing strategy in a better way. Read Also: Why Entrepreneurs Should Pay Attention To Cryptocurrencies In 2021 The Profit Revolution: The Best Bitcoin Trading And Investing Platform Exciting Facts About Cryptocurrency And Crypto Wallets

Good To Know Tips When Buying Or Financing An RV

Buying an RV requires making a huge decision that you should not take lightly. As an RV is a major investment, it is important that you do your research so you will know what your options are. If you do a bit of prep work, you can save yourself from making a purchase of the wrong type of RV that you will eventually regret. There are factors that will influence your decision. What is your financial situation? When it comes to determining your interest rate, there will be aspects of your financial situation that will come into play. These factors will include your financial history, your income, and the amount of money you are able to pay, which will serve as your downpayment. Before you consider shopping for RVs, you need to assess your finances first. Analyze how much you can afford before shopping around. By knowing your financial standing, you will know the amount of money you need to pay throughout the duration of your loan. If you think you will not be able to manage your finances when buying a new RV, do not lose hope. In recent years, the used RV market has seen an explosion. There are so many options out there with less miles and exceptionally long feature lists. You can easily go for used rv financing to get your dream machine and be out on the open roads with your family. Here, the interest period will be lower, along with the premium rates and processing fees. What is the price you can afford? Buying an RV entails spending a large amount of money. An RV combines both aspects of purchasing a home and purchasing a car. A car will depreciate quickly. In a few years, you will notice that its value decreases by 5%. If converted to cash, it can be a big amount. It is important that you know the type of loan you are getting yourself into. Having the ability to pay back the amount before your RV depreciates is important. Avoid These Financing Mistakes: 1. Not accurately estimating what you can afford: Compared to a regular passenger vehicle, RVs cost much more. In fact, you can expect to invest in an RV to be similar to investing in a real estate property. Some who are eager to buy an RV will exhaust all ways and means to secure a loan. However, when the times comes when you need to pay back your loan, this is where a series of problems start creeping in. Without carefully analyzing how much you can afford, you will end up having difficulties catching up with your loan. Before you take the plunge, you can use a personal loan calculator so you can estimate the monthly payments and interest you will have for an RV loan. The calculator will also provide you with essential details like your amortization schedule. When financing an RV for the first time, these details are going to be a big help. Aside from taking the taxes, loans and registration fees for owning an RV into account, you should also include the campsite and storage fees, the costs of maintenance, utility costs, and mileage rates. 2. Not reviewing your credit score: As part of taking out a loan, it is your responsibility to know your credit score as this can have an impact on your RV loan. If your credit score is in the mid-700s or higher, it is considered as the best rate. A credit score of 700 is also a good score. While a credit score in the 600s can still qualify you for a personal loan, your interest rate will be much higher. You should also keep in mind that the interest rates vary from state to state. However, borrowers with bad credit scores are expected to have higher interest rates which can go up to 24%. 3. Not doing thorough research: It can be tempting to settle for the first loan offer you get, but this can spell trouble. Regardless of the type of loan you consider, taking the time to do your research is important. Lenders have different payments terms. Some offer lower interest rates while others are a little bit higher. When you are financing an RV, you should also understand the RV policy being offered. It might be similar to regular car insurance, but there is coverage that is specific to an RV. One of which is property insurance because you essentially consider your RV as your home when you are using it. You should also know the difference between an auto loan and unsecured RV loans before you make a decision. 4. Owing more than the future sale price: One thing that you need to understand about owning an RV is that it can depreciate by as much as 30% once you start using it. That said, you are at risk of paying more than the future sale price of your RV. You can avoid this from happening by paying a large downpayment so you will owe less when you decide to sell or trade your RV. Another technique you can employ is by starting small until you have the capacity to invest in a larger RV. By buying a lower-priced RV that you can pay off, it will be easier for you to trade it in an improved model in the future without risking falling behind your monthly payments. Buying an RV can be quite complex. You need to be thorough so you will know the implications of taking out a loan. A Dallas RV dealer will be able to help you weigh your options and find the best deal. Read Also: 7 Simple Tips To Pay Off Your Loans Faster 3 Must Know Accounting Tips To Help You Finance Correctly Are Debt Consolidation Loans Recommended For Credit Card Consolidation

5 steps to take if your personal loan application is rejected

1. Check the lender’s eligibility criteria

2. Improve your CIBIL score

3. Make sure your outgoing expenses are low

4. Provide the correct details

5. Apply for a lower loan amount

Conclusion

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Important Things You Need To Know Before Filing For Bankruptcy

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5 steps to take if your personal loan application is rejected

1. Check the lender’s eligibility criteria

2. Improve your CIBIL score

3. Make sure your outgoing expenses are low

4. Provide the correct details

5. Apply for a lower loan amount

Conclusion

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Investing In Bitcoins: 5 Things You Need To Know

How to Buy Bitcoin From Norway?

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

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Follow Us

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