A signature loan can be an excellent option for individuals who are looking to access funds for an urgent need. Though they are one of the most popular types of credit lines, many who apply for them are denied for a variety of reasons. This can lead to an embarrassing experience that leaves a person feeling without hope. One of the best things a borrower can do before applying for a loan is understanding the most common items that force lenders to deny an application. Talk to a lender before applying if any of the following circumstances apply.
Poor Credit History
A credit report lists a consumer’s credit accounts and assigns a number that determines their credit worthiness. Missed payments and loans that are in default can cause a score to drop drastically and cause a loan application to be denied. Some loan companies will overlook past credit mistakes, and will instead focus on the previous six months of credit activity in making a decision.
No Verifiable Income
Credit reports are the first step in determining a person’s ability to repay a loan, but without income obtaining a loan is next to impossible. Some lenders also require an applicant to have their check direct deposited into their bank account, which can be a hurdle for some. Talk to a lender to learn about their minimum income requirements and consider getting a job before applying.
Overdrawn Bank Account
The lender will want to ensure that the borrower is not already in a bad financial spot. They may ask to do a conference call with the applicant’s financial institution to confirm the activity in a checking account and ensure it is not in the negative before approving an application. Many applicants find that borrowing a small sum of money from a friend or loved one to restore a balance before applying can eliminate this common reason for denial.
The lending professionals at King of Kash work with borrowers that have all types of credit problems and are known for helping those in a complicated financial situation get the money they need. Stop by their website to learn today about their process and view their FAQ page to get answers to the most commonly asked questions. Get approved for a loan quickly by trusting their lending team with any financial need that may arise.