Life likes to play tricks on us. Usually unexpected. For example, like this when the bank rejects our loan application . Surprise, anger and helplessness – these feelings usually accompany us when we hear about a negative credit decision. Instead of breaking down, it is better to mobilize yourself and take action. There are usually two reasons why a bank refuses to grant us a loan: low creditworthiness and unpaid liabilities. How to deal with each of these cases?

 

Low creditworthiness

credit score

We are dealing with it if, according to the bank, our earnings are too low to secure payment of installments. In this case, we can: apply for a second loan, this time for a smaller amount, look for an additional source of income or go for non-bank loans.

You can choose from traditional loan companies such as Provident or Wonga as well as community loans such as Kokos. The advantage of the former is the quick time to grant a decision and the same time to pay it out.

The conditions are unfortunately somewhat worse than for social loans.

Therefore, if we are not in a hurry, it is worth getting interested in the latter, which can be provided on better terms. Social loans operate on the basis of auctions that you issue. You provide the loan amount you want to obtain and the interest rate you can accept.

Private investors participate in your auction and give their offers. However, to be able to place such an auction, you must have an appropriate experience in being a member of Kokos or another social loan. Unfortunately, we don’t always have enough of this time.

 

Unpaid debts

Unpaid debts

This is the second reason for the bank’s rejection of loan applications. Old, past due debts are visible in BIK registers . On their basis, banks do not want to grant new loans, fearing that they will not be repaid either. Then the only solution is cash loans against movable or immovable property.

One of these is a moto loan. You can use it if you are e.g. a car owner.

The amount of such a loan, which can reach up to $ 100,000, depends primarily on the value and valuation of the vehicle you want to pledge. Another company operating on similar principles is the Crown Fund.

In this case, the pledge may be real estate for which you have a legal title and are not subject to bailiff seizure or mortgage. The maximum amount of the loan in the Borona Fund is $ 10,000 and the value of the pledge must exceed $ 10,000.

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