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How Do You Get a Loan When No One Will Approve You?


Getting a loan can be particularly difficult for people with bad credit as well as the self-employed and even young people who do not have much credit history. Getting a loan can also be very difficult for those who have had to borrow money numerous times over a short period which may leave them with a particularly poor credit score.

If you need money now and are looking to be approved for a loan but you keep getting turned away, there are a number of things you may look at or consider which may be harming your chances of getting approved for any loan. Here, we have detailed some of the things you could consider which might make things easier for you when trying to find a loan online or in store.

Will Loan Rejections Affect My Credit Score?

In short, yes. If you keep getting rejected by loan companies, there will likely be a record of this on your credit file. It is important to not apply for too many loans too closely together as each time a hard credit search is carried out on your credit file, it will show up.

This means that other lenders will be able to see that you have had numerous credit searches conducted on your record over a short period, which may indicate multiple rejections. Lenders will see multiple rejections as a sign that you are not creditworthy, leading them to believe you have bad credit or are not a good lending prospect.

Therefore, take care to think about whether any loan is right for you before you apply for it.

Take Steps To Improve Your Credit Score

One of the main reasons that people get rejected when they apply for any loan is they do not have a strong credit score and do not have a decent credit history. Ultimately, having bad credit is one of the biggest negative factors when it comes to getting a loan anywhere, in any shape or form.

Whether you need to borrow $1000 or you just need a $400 loan, if you have poor credit or a bad credit score, your chances of getting the loan you need are lower than if you have a good or even average credit score.

If you think that this is why you might not be offered a loan with a particular lender, then there are steps that you can take to improve your credit score and make it more likely that your loan application will not be rejected in the future.

If you have any outstanding loans or debts, you should focus on paying these off before you apply for a new loan. If you are self-employed, your credit score will be that extra bit more important as it may affect your business as well as your personal finances.

Paying off loans and debts on time, at the end of each month, will help to improve your credit score and consequently demonstrate to a lender that you are reliable when it comes to money.

In addition to this, you can run a soft credit check on yourself using online tools to see what your credit score currently looks like. This can help increase your awareness of your spending habits and help you to set some realistic goals when it comes to improving your credit score.

Remember that hard credit searches will leave a ‘footprint’ of credit checks having been carried out on your credit profile, which may in itself be a red flag to lenders, so always make sure you opt for soft credit searches wherever possible.

If you need a loan, but keep getting rejected, it may be worth going through your finances and understanding your credit score

Take Out A Payday Loan

Payday loans are one of the fastest ways to obtain money quickly if you do need instant access to a loan and you think you are unlikely to be approved by a more traditional lender.

Payday loans are short term and sometimes high risk loans, as the interest rates associated with them are particularly high compared to other loans like secured loan options.

There are not many requirements when it comes to being approved for a payday loan, and although lenders may still assess your credit score or credit history in advance of approving you, lenders may well still consider people who need bad credit payday loans.

The lender will just need to check that you are over the age of 18, that you have a bank account in your name and that you have some form of regular monthly income.

This is to ensure that you are of a legal age to receive the loan, that they will be able to transfer the money into your bank account and that you have some means of paying the loan back to the lender at the end of the month.

Payday loans are usually a viable option for those who need money to get through a financial emergency and to get borrowers through a month for example; until their next payday from their employment. Typically, payday loans will be able to help people borrow smaller amounts, such as in the form of $100 or even $500 loans.

Payday lenders will not discriminate based on how you receive your monthly income, but they will be unable to lend you more money than you receive in a month to ensure that you will be able to make the repayments in the next two to four weeks.

Payday loans are only designed to be used in emergency circumstances and should only be considered when you have no alternative, such as if you have medical bills or house repairs which you urgently need to pay for. They are not designed for frivolous or unnecessary spending and should not be used to pay off alternative debts or credit card bills because the interest rates are so high.

Can I Get Guaranteed Loans?

Guaranteed loans are very hard to find and they are rare, as lenders will not be able to guarantee you any loan or money until they have carried out some form of credit or affordability checks on the borrower. It is important they carry out these checks as they help determine whether or not someone is a good lending prospect.

It also helps lenders avoid lending money to people that will otherwise be unable to repay their loan, leading them into further debt and financial difficulty.

There are many loan options you may consider though, some of which will be more suitable at different times than others, including:

  • Installment loans
  • Bad credit loans
  • Cash advance loans
  • Same day loans
  • Personal loans
  • Title loans

Whichever loan type you do apply for, you should always look to go for the loan which suits your circumstances and financial situation best, rather than the loan which will lend you the most money.

Also, make sure you understand the laws around loans, lending and payday lending in your state. The laws around short term lending vary from state to state. For example, if you are looking for payday loans in Ohio, the laws will potentially be different compared to if you were say, to need a payday loan in Nevada or in Louisiana.

Advice If You’re Considering Taking Out A Loan

If you are considering taking out a loan but you have already had your loan application rejected by other lenders, you might want to consider whether taking out a loan is really the best option for you.

Loans can be difficult to pay back and if a lender has rejected your application, it may be because you are unable to demonstrate that you are a reliable borrower. Instead, you could try to implement a payment plan to pay off existing debts and try to save a little each month to prevent having to apply for an emergency loan in the future.