5 actions to take if your loan was declined

Loan request declined? We’ve got good news for you!

There’s still a chance to get that loan approved. As always, Irorun is here with actionable and helpful tips for you.

Check out 5 actions to take if your loan gets declined

Review the decline notice

The first thought that tends to come to mind for several people when they get declined for a loan is “Why?”. You start to question the lender’s judgement because as far as you’re concerned, everything was in order at your end, but instead of making assumptions or giving up completely, you can review your decline notice to learn and understand the reason for it. Doing this already puts you one step ahead in solving the problem. PS: Secrets are always hidden in the fine print. So read the fine prints!

Ask for more details if you can

When you get rejected for a loan and receive a decline notice, even after reading the notice, you should make an effort to ask the lender for more details about your loan rejection. Most times, it isn’t all details that have been placed on the notice and you can gain a lot more understanding by asking the lender to clarify what was written on the notice or simply asking for more information. If your lender doesn’t mind or if it’s not against their policy, they could be willing to share what went wrong in your application that warranted a decline.

Review your credit report

How often do you review your bank statements, credit reports and financial documents?

Most people hardly check through these reports, because it’s believed that everything is as it should be, but the truth is, it’s not always so. Your finances, just like any other aspect of your life deserves regular checks and review.

When you get declined for a loan, you should take the time to check for inaccuracies in your credit report as these might’ve been what the lender saw that made them decline your loan application.

Your credit report holds most of the power in your approval for a loan, so you should take the time to make sure that it’s as accurate as it can be as even a tiny error can lead to a loan rejection.

Pay off other pending debts

A genuine lender checks your past credit history with the credit bureau to ensure there are no defaults, disputes and uncertainties.

If the lender reviews your past credit history and finds one or more unpaid debts, best believe your loan request will be declined. The fact that you are still indebted to other lenders may make them believe that you don’t have the capacity or even worse, the willingness, to pay off any loan that they may lend you. Remember, a lender who’s unafraid to lose their money is a red flag.

Your best bet is to pay off all other pending debts you may have before trying to take out another loan.

Apply for a smaller loan amount

When you get declined for a loan, it’s advisable you apply again but for a smaller amount than what you previously applied for. There’s a possibility that the lender has noticed an unclear detail in your documentation that affected their belief in your capacity to repay the loan amount you requested.

You can try for a smaller loan amount, an amount that can be paid back with ease and speed. This increases your chances of getting approved and not declined.

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We hope you’d try out these tips and let us know how it works out for you. For more clarification and assistance in applying for a loan, send us a message at support@irorun.com!