If you’ve been recently refused or turned away from a much needed bank loan, you’re probably stuck wondering, “what now?” However, your financial future is not completely bleak- there are still options available to you. Let’s go over some of the alternatives you still have left.
First, find out why you’ve been turned down.
You can find out what consumer reporting agency the loan company used to research you, and then request a copy of your credit file directly from that agency. Check your file for any mistakes in your credit history and be sure to resolve them right away. The agency will then have 28 days to fix the mistake on your report, if there is one.
You can also ask the loan agency the reason for denying you a loan, but they may not be able to give you a detailed response. It doesn’t hurt, however, to just try getting an answer from them.
Think before applying for another loan.
Until any mistakes in your credit report are fixed and/or you resolve the initial problem you had with receiving a bank loan, do not apply for any again. All loan applications can and will show up on your credit history, and multiple denials in a short period of time will affect it negatively. Only apply for another loan if you are fully confident in your scoring chances.
If you need money now, try consulting a financial advisor.
An advisor can help you analyze your debt and problem areas in your cash flow as well as assist in planning a budget. They will help tremendously if you’re looking for ways to pay your monthly expenses without going deeper in debt or affecting your credit score negatively.
If you’d like to try a different type of loan, look for an opportunity to take out a car title loan.
Car title loans utilize your vehicle title and give you money in exchange for it (for a temporary amount of time). These loans don’t pay attention to credit scores, though they do tend to come with higher interest rates and want to make sure you are currently employed.
Or you can try selling to a pawnbroker.
Pawn shops will accept your personal items of value, such as jewelry or electronics, and loan you money while they hold them in the store. You then have a limited amount of time to pay back the loan (with interest) to retrieve the item, or you can just let the shop take the item to sell.
You can also sell gold for cash.
There are a number of good places willing to buy your gold for good money, so long as you have it in a good amount, and it’s a safe way to get some extra cash.
But always be aware of scams.
Personal loan scams are, unfortunately, in high company. A few signs that you’re encountering a scam include businesses that are unregistered lenders, lenders that require you to pay “insurance” or “fees”, and loan websites whose URLs lack an “s” (for secure site) in the “https”, among a few others.
After being denied for a bank loan, the future can seem dark and dreadfully full of debt. However, these few alternatives for some extra cash can definitely help you out of a financial hole.