WHAT TO DO WHEN THE BANK TURNS YOU DOWN?
Banks turn down loan applications for many reasons, even if you have been working with the same institution for years. There is nothing worse than the feeling that you can’t get enough money by remortgaging your house to pay your credit cards off.
The financial pressures of the high cost of living, high bill payments and high interest rates can be overcome with some careful planning and financial help from an organization who understands your needs and helps to provide you with solutions.
Why do banks turn down mortgage applications or loans?
When a customer applies for a loan, the bank will look at your credit score, amount of outstanding debt, current income, monthly payments, assets and more.
If your income has changed, if you have missed payments on your credit card, if you are carrying too much debt, the bank might turn you down. If there have been too many checks into your credit rating, or you’ve had financial trouble in the past, these factors can also influence your likelihood of getting a loan.
This is not the time to get discouraged.
How to improve your credit rating?
In order to get your credit rating improved there are a number of steps you can take.
While this may not happen instantly, it will relieve a lot of pressure if you can pay down your bills and carry on with your life.
In order to improve your credit rating, and improve your chances of getting a loan the next time you need one, here are some tips:
- Limit the number of credit cards you own.By owning too many credit cards, you have the potential to spend more, and the amount borrowed when all the limits are combined can hurt your score, even if you don’t carry balances. Get rid of the store credit cards and limit yourself to one or two major cards. If you are carrying balances on your credit cards, another option is to sign up for a secured credit card. This limits the amount you can spend based on how much you deposit into it, and they are much easier to apply for.
- Obtain a home equity line of credit to pay off your credit cards.By working with a mortgage broker you can obtain a loan based on the equity in your home to pay off credit cards with high interest rates. Since the loan is secured by the value of your property, it makes it easier to get a lower rate of interest and lowers your monthly payments. Once your payments are lowered, you can concentrate on paying down your debts and get back your life.
- Switch your Mortgage.If you are paying too much interest on your mortgage, it is using up the money you make and this makes it harder to pay your bills. A qualified mortgage broker can look at your mortgage and help you find ways to lower your monthly payments and relieve some of your financial stress. Mortgage brokers have access to a wider range of creditors and can be a great asset to assist you in getting the best deal for you. Depending on the penalty for switching your mortgage, a mortgage broker can show you how you can save thousands.
- Pay your bills on time.Paying your bills on time helps you to maintain a healthy credit score. It shows creditors that you can pay back the money you borrow on time and are a reliable credit risk. Late payments for bills are one of the biggest things that hurt your credit score.
- Don’t apply for more credit than you need.If you have too many credit applications in your recent history, this can hurt your chances of applying for credit when you really need it. Calculate how much money you need to pay off your credit cards with the highest interest rates and borrow what you can manage.
- Restructure your debt. Reduce the number of payments you need to make by restructuring your debt. This can be done with various types of loans or financial options made available by a mortgage broker.
Other issues such as being self-employed can also make it harder to obtain financing. But there are alternatives.
The mortgage professionals at One Stop Mortgage use their extensive knowledge of the mortgage lending industry, a flexible approval process and the ability to access a wide variety of credit sources to help you get your life back. When the bank says “no” One Stop Mortgage can use a wide variety of lenders who don’t use the same rules as the banks and can help you rebuild your credit and obtain the financing you need to do so.
For self-employed people, the One Stop Mortgage team can use your state income to get you competitive rates. Instead of the cold customer service you receive at the big banks, the team at One Stop Mortgage can provide you with solutions to help you fix your credit and get back your life. If the bank turned you down, try One Stop Mortgage first.
Contact One Stop Mortgage today and get your life back. We make mortgages and home equity loans simple. If the bank turns you down, call us at 1-877-874-8988 for options or apply for a home equity line of credit.