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You have been
declined for a personal loan request . There are
several strategies you can take.
Credit Decline
If you were
declined based on your credit report you should
immediately get a copy of your credit report.
After you receive the report.
Determine what is it that’s derogatory on your
report. Is it accurate? If so, there really
isn’t much you can do about it on the credit
report. Then all the lender who declined you.
Ask the following:
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Were
you Auto Declined by their computer or did an
actual person review the application?
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If
you were declined by a computer or even by an
actual person, find out who has the authority to
re-review and approve the application. Tell them
you want it to be re-reviewed by that person and
you want to speak to them. If they are
unavailable, get the name and phone number of
the person who has the authority to re-consider
it and approve it and leave a message for them
to call you back.
It
is very possible, depending on the size of the
company and what you have applied for that you
may be told that you have to wait 6 months to be
re-evaluated or that it is against their policy
and cannot be re-evaluated. In almost all cases,
if not all, the company can re-review your
application if they want to. If you are told
something like this, it is only a first line
employee telling you guideline procedures. There
will almost always be someone who has the power
to re-evaluate your application and that’s what
you want them to do. Don’t think you are being
too pushy, you can be sure there are others
doing this very thing.
Once you speak with that person, don’t complain,
give them information that they feel they could
use to justify approving the application. Most
of the time, they want to try to approve you if
they can. Then ask them what it would take for
your application to be approved. If they reverse
the decision, great, if not, follow their advice
on what it would take to get approved or put you
in the best position to get your loan request
approved.
Was there one specific thing that was
predominant in the decline? How close were to
you an approval? Find out these details. You
need to know where you stand so you’ll know what
to do to get approved next time.
What do you do now? You still need that loan.
Now you know exactly what your credit looks
like. Find another viable lender. But don’t just
start filling out loan application. Do the
following:
Call them, ask to speak with a credit officer.
Tell them what you type of loan you want, the
amount, etc..
Ask them what factors they look at in
decisioning those loans. Then tell them your
income, what your credit bureau score is and
roughly what your monthly totals are for fixed
debt or anything else that would play a major
role in approving that loan.
Try to get them to tell you if they think you
have a good chance of getting approved. They may
be reluctant to do this, but if you push an
actual loan officer, they will probably give you
a good idea. You are in essence, trying to use
what you now know about your credit to do a
verbal before you actually apply. This is
important. You have already been declined once,
you don’t want to be unnecessarily be turned
down for the same thing again or any other
reasons that you can avoid by talking with the
lenders first, if possible.
If you are dealing with a credit card issuer,
the way to handle this is to call the customer
service number and ask to speak with a
supervisor.
Credit Doctors / Bureau Cleaning Services
Some people have
tried in recent years to get Credit Doctors to
clean up their credit. This has certain
Drawbacks associated with it.
Most of these companies rely on existing rules
to help you clean up your credit. If one of your
creditors reports a derogatory item on your
credit report, there are rules to the effect
that if you contact the credit agency and
dispute that reporting, the credit agencies have
a limited number of days to contact that
creditor and ask for a verification of that
reporting. If that company fails to reply on
time, the credit bureau may have no choice but
to delete that derogatory record from your file.
These credit doctors will bombard the credit
bureaus with a volume of these request which the
credit agencies and the companies reporting you
delinquent cannot keep up and the credit
agencies will be forced to remove the derogatory
reporting from your file. Sometimes these
derogatories will re-appear on your credit file
again later and in other cases some will not
come off because the contact information for
that creditor is no longer valid. So if you have
a lot of things wrong on your file, this may not
work.
Chances are, it will not work for all of the
tradelines reporting and it will remove most of
them but not all of them. When it comes to your
credit report, even one or two very derogatory
reportings will do most of the damage to your
credit score.
Divorce
In a divorce, both parties separate debts and
believe they are not responsible for any
previous joint debts they have not agreed to
pay. This will often result in credit
problems….more
Any joint loans, be they personal loans or
business loans that a couple entered into with a
lender while they were married will continue to
be joint debts after the couple divorces
regardless of what the husband, wife, attorneys
or court orders.
When the couple entered into a joint loan with
the lender, the lender approved that loan based
on the information of both the husband and wife.
Their contract, as agreed upon by the couple, is
with the husband and wife together. If there is
a divorce, the couple cannot just split up the
debts as they see fit or have an attorney or
even the judge of a divorce court decide how the
loans will be split up.
The lenders have to agree to any separation of
debt and they have every right to refuse to. The
contact was between you, your spouse and that
company, not anyone else. It is a legally
binding contract, therefore, 3rd parties have no
legal authority to alter it afterwards. For the
lender to convert any existing debt from joint
to individual is a completely new credit
decision. They may decide that the income of one
of the parties is not enough to support the debt
that was approved jointly before, or there may
be many other legitimate reasons that the lender
felt strongly enough to make the loan together,
but would not have made the loan if one of the
people had applied individually.
Contact the lender directly and find out what
their policies are for a divorce situation. If
they tell you you must re-apply, do so. If they
will not approve you, you can take another loan
out elsewhere and pay out the existing loan and
close the account.
If you end up leaving it joint but your spouse
agrees they will pay it themselves, keep track
of the debt to make sure your spouse is paying
on time. Get the institution to send a copy to
your address if possible. If your name is on the
account, it will damage your standing with that
company if the account goes past due, and it
will damage your credit if the account goes 30
days Past Due
New Social Security Numbers
Some people who
have had major credit problems have gotten a new
social security number being told this will be a
“clean slate” wrong move.
This is only part of the story. It’s the rest
that could be your nightmare. When you are
issued “a new” Social Security Number from a
company, it could be that SSN has been stolen
from the Social Security Administration, meaning
it is a number that they intended to give to
someone else in the future. That might work in
the short term, but if the Social Security
Administration finds out, you may be contacted.
It will not be a pleasant or short experience.
Even though you have gotten a “new” SSN, once
you apply for personal loans or small business
loans, your old SSN will almost certainly ALSO
pop up as another SSN. This is a major red flag
to lenders. They realize there are a variety of
explanations for this, none of which are good.
They will think either:
1) You are a fraudulent applicant and decline
you
2) You have stolen a social security number and
are trying to start a new identity.
3) They will probably not think you have a son
or daughter with the same name as you (The best
scenario) Since this “new” SSN will have a more
recent issue date than your true one, it may not
be old enough to obtain credit. If it is, your
true SSN issue date better be at least 15 years
older than the issue date of your adopted SSN.
In all likelihood, this will not work even in
the best of circumstances. You will create more
problems than you have solved. Do not do this.
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