Turned down for Credit, Why?
Reasons why lenders may turn you down for credit..
Been turned down for credit, you are not alone, with many of us turning to money lending as a way of buying a car or simply bringing a gap between pay days it’s certainly a thing on all of our minds. But just why are some of us turned down for credit? With banks and other types of lenders getting into trouble recently with their irresponsible lending many are cracking down on who they lend to.
Here are just some of the reason and things that you could do to improve your eligibility for car credit or indeed any loan.
You simply haven’t borrowed before and cannot prove that you are a suitable borrower is just one things that can stop you from being accepted for a loan. How can a lender check f you have been able to make repayments in the past if they have nothing to go on. Sometimes it’s worth taking out an affordable small loan and pay it back according to your repayment plan just so you can demonstrate your ability to stick to your contract. Show you are able to balance your books at home and mange your own finance and that will go a long way to helping to show lenders that you are responsible when it comes to making your payments on time.
If you have borrowed in the past and have not always been able to stick to your payment plan then this can go against you obtaining credit in the future. Lenders need to see that you can manage your money and so paying off any current loans will help you gain credit in the future. What’s more if you apply to several lenders who have then go on to carry out a search on your credit history then this will show up on your credit file and may put some lenders off approving your loans. Try to find the right lender for you, apply and then wait and see, if you are then turned down by that lender, find out the reason why and then you will have something that you can work on to improve your borrowing chances. But if you continue to apply to lots of lenders then this could make them think that you are desperate for money and therefore not good at handling your finances, so think again before applying.
One important thing that many people just don’t think about is being on the Electoral Register. Being on the Register means that you can prove your identify, where you live and that you have been living there for some period of time. This will show to lenders that you have a permanent place to live and can prove it. So if you are not on the Electoral Register you need to make sure you are added.
By looking at the little things that could affect being accepted or turned down for credit will help you to be more successful, it just takes little research and in a lot of cases will be relatively easy to do.
Sometimes the little things make a huge difference!