One of the most frustrating things in the financial world is a rejected loan application. What’s painful about it is that some people have worked so hard for their application but in the end, they get denied. If you have been denied many times in the past, you may be feeling down and unmotivated. You probably think that you will no longer get an approved loan because of your credit history, but keep in mind that each lender is different. They differ in terms of how they do their decision making process, others are more pliant, others are very strict. They will usually base their loans on your personal information; an example is your past financial activities, criminal records. A single or even several denied loans shouldn’t stop you.

If you got rejected, what you should do is…

1. Move forward and look for other loans that the lender provided, compare them to other rates and list down the best lenders and loan types.

2. Contact each lender individually and inquire on how you can improve your application to have it approved. Lenders usually change their policies depending on the economy’s status. Some lenders will still be willing to work with you while others may tell you straight that you don’t fit their application. Just be patient and you’ll narrow down the lenders who are willing to help you with your application.

3. Next, make sure to ask the lender about the pre-approval process. If they do have it, what they’ll do is they will run a credit check on you then they’ll decide if they’re willing to do business with you. Don’t be disappointed if they tell you that you’re not fit for their standards, just go look for another lender. But if you are lucky enough to get pre-approved by the company, you may still need to go through the application process however, you won’t be denied by their company anymore.

4. Make sure to not apply to 3 or more lenders at the same time. If you do so, you will hurt your credit rating by around 10 points. And when you credit is pulled, it will leave a 2 year mark on your credit report. It will also reduce your chances of obtaining a loan.

Always ask the lender about the process and how you can improve your application. Don’t get a denied application stop you from applying to a new one. Just think about what went wrong then from that start working on improving it.

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