What to do when a loan is not approved?

Few things discourage as much as the rejection of the requested credit. If this is your case, in Rexi  I tell you about what to do when you do not achieve the objective of lending you the amount you require.

 

Understanding the loan approval process

Understanding the loan approval process

The approval of a loan is complex. It implies different departments, with different norms and policies; but in general it can be said that there are three stages: Request, evaluation and response.

 

Of all, the evaluation is the heaviest. And in it, first of all, you investigate and analyze what your credit and consumption behavior has been. In other words, how good pay you are, and how many economic fronts you present.

 

Second is your financial situation. That is, your income, expenses, family structure, time working or undertaking, ability to pay, etc. When you join all these pieces, the final result is determined.

 

What to do when a loan is denied?

What to do when a loan is denied?

On the basis that the basics of the process are credit and financial stability; Before the denial of the loan, the question that arises is what to do after. For this I present three alternatives

 

Ask the reasons for rejection

Ask the reasons for rejection

The first thing you have to do is ask the reason for the rejection. And doing this is important because if a bank did not approve a loan for one aspect, it is very likely that the next one will do it for the same reason, and you should avoid making cheerful requests, because the many inquiries to the bureau affect your overall rating.

 

This is why as long as you know what happened, you will have the information that will help you amend or compensate for such a situation. For example, imagine that the rejection was for income. Then you have to look for extra alternatives or save more so they lend you less and fit your financial reality.

 

Create a link with that bank

Create a link with that bank

Although it is common for people to apply at banks they know. It is not always the case. Therefore, if you are really interested in that, this is a good opportunity for you to start a process of becoming a client of that bank or consolidating what is already there.

 

For this it would be good to have a savings account, a certificate or a credit card. Thus you create a history with this entity so that they take into account not only cold numbers of the credit bureau, but your relationship with them.

 

 

Access and investigate other alternatives

Access and investigate other alternatives

Although it is possible that the offer is good. There are multiple options in the market. Therefore, research and compare. It is true that the reason for the rejection can be validated by another institution, but also not all of them give the same weight or category.

 

In that sense, help yourself from the internet, call the banks and in this case in particular, from our platform. Since in it you can see the entire market in one place. So you know what viable options are for you.