Have You Had A Loan Application Declined? Here Is What You Should Do Next

What Should You Do If Your Loan Is Declined in Australia?

1. Have a Clear Understanding

Make sure you fully understand the reason why your loan was declined.

If it is due to affordability, ask exactly how much more income you would have needed to have the loan approved. Every lender is different, so that means every lender’s affordability calculator is different. By you understanding how close/far you were from getting the loan approved will help you to be directed to a suitable second chance lender. If you just start applying to many other lenders without understanding your financial situation, this will create many new entries on your Credit Report, which means your credit history will be instantly tarnished with too many recent applications.

If the decline is due to your credit history, then you should ask for a copy of your credit report and understand what is listed on it. If the lender is not allowed to give you a copy, then you can easily obtain a free copy from Veda Advantage. When you understand what has caused your decline, for example a telephone account that was never paid, then you can use this knowledge and talk to a lender who deals with bad credit loans and may consider your application.

2. Approach Other Lenders and Ask If You Are Eligible Before Submitting A Formal Application

Be honest and approach other lenders armed with your decline reason. When you are open and completely honest, the lender can give a good indication if your application would be worth submitting, or if you are better to wait for a certain time to improve your circumstances. There are many reasons for a decline. The most common are affordability, credit history and security but there are many others such as being on probation or even not being able to provide enough proof of the income you have stated.

3. Be Prepared for Your Next Application

The best thing you can do after being declined is to learn from it and be better prepared for your next application. Make sure you have all your paperwork organized before you apply for the loan, such as pay slips, bank statements, employer details, identification documents etc. Ask the Lender before you submit your application for a checklist of items you will need. Get a free copy of your credit report to ensure nothing new has been listed against you, and if something has, then get straight on it and get it paid or have that included in the purpose of your loan.

Credit Repair Tips – What Errors to Look for in Your Credit Report

Personal Information

The first information you should check is your personal information. This data is critical as you may find your personal information to be incorrect or outdated. Human errors are commonly made and data belonging to someone with a similar name is included in your report. Another tip is to be sure that your current employer is listed as well as your current address.

Mortgage Loans

The second tip is pertaining to your mortgage loans. Loan modifications and short sales are sometimes erroneous classified as foreclosures on credit reports. It is important to get this corrected since foreclosures are harmful to your credit score. Loan modifications and short sales should be indicated as such on your credit report.

Cancelled Credit Cards

The third tip is being sure when you cancel a credit card; it is not reflected on your account as “closed by grantor.” When the notation “closed by grantor” appears on your report, it means the credit card company has closed your account. This is a red flag for potential lenders who may see this as a sign that you did not pay your bills in a timely manner or some other reason which violated the terms and conditions of the card issuer.

Check Your Account Balances and Payments

The fourth tip is to check your account balances. You may find your balances are higher than they should be which could have a negative effect on your credit score. A general rule of thumb is to keep your credit card balances under 40% of your credit limit. Since credit card balances are sent to the credit bureaus on a monthly basis, your account may not reflect a large reduction or payoff made within the current month. If you are applying for a new loan, you would want the lowest balances to reflect on your account.

Be sure your account payments are accurate. Make sure your payments are showing as being paid on time and in good standing. Sometimes human errors occur and can be fixed with little effort.

Credit Inquires

Tip number five is to check who has requested to see your report and score. These inquires can come from companies who are looking to extend additional credit or services, potential employers or third-party service providers for marketing purposes. You should always be aware of who is viewing your credit history.

Check Your Old Accounts

The next tip is to check your old accounts. You may find that some old accounts that have a negative effect on your credit score should have fallen off your report in seven years. This should be corrected in an effort to improve your score. However, some old accounts that are in good standing can have a positive effect on your credit score and you’d want to keep them.

When repairing your credit, It is important to fix any errors that might affect your history and score. These errors could prevent you from being approved for a potential loan. Disputing errors might take work and time but having a correct credit report is important and will help you in the future.

How Can Student Credit Cards Make Campus Life Easier?

Student credit cards are a new concept and this is why many students do not actually know how to use them effectively and so they fall in debt. It is essential that as a student, you should educate yourself on how a credit card and its related fees work so that you can make wise financial decisions. This will also enable you to protect yourself from racking up of the bill, which will turn out to be a burden to pay off in the later stages of your life.

Generally, college students like you will be lacking credit history and so the interest rates and charges on your plastic money will be higher. You can follow different methods to avoid this higher rate of interest when you are applying for student credit cards. When two individuals can co-own a card, both of you can manage the payments together. If the individual, with whom you are signing with already has a good credit history, it will be of great help in lowering the interest rates to be paid. Do you know what is 6 months 0% APR?

This means that you will not be charged any interest on your plastic money for the following six months. Generally, this form of offers are offered by credit card companies to attract more and more students. But, when you are offered with this sort of discount, do not forget to read carefully about the rate of interest that will be charged at the end of six months. Even though, the initial cost of college life will be higher like you will have to incur on purchase of books, new sets of attires to be worn to your college, etc… and once these tasks are completed and you will settle the expenses you face will be lesser. So, when there is no interest in the first six months it will be of great help to you.

Having a card will be highly helpful since you can easily spend on finding an apartment, applying for a telephone line, etc… Also, landlords will come forward to offer their property on rent to you as when you have a plastic money, they believe that you will be able to meet the monthly rental expenses without any problem. You can feel yourself as a respectable person.

When a reliable company offering these types of cards is found, you can also get reward credit cards from them. So, find a reliable company to get the best student or reward credit card and lead a happy life.

Cash Back Credit Cards Are The Way To Go

Credit cards that have reward programs that give you rebate incentives or cash back are the way to go. Why shouldn’t your credit card reward you when you use it? Are you still using a card that doesn’t reward you? Why is that? The possible reason that more people don’t have these types of cards is because they usually require fair to excellent credit ratings to get approval.

These kinds of cards have become a lot more popular because gas prices have risen so sharply. You can earn up to 5% cash back on eligible purchases like utility bill and phone payments, cable and gas bills, groceries, and dining when you get some of the more widely available cash back cards.

A lot of cash back cards are in the lower range of percentage payback, hovering at around 1% to 2%. However, there has been a trend to raise the cashback percentage to 5% amongst major card issuers. However, the 5% cashback rate usually just applies to purchases made at gas stations, pharmacies, and grocery stores. You usually only get the 5% cash back on one of these items, but getting 5% back is substantial. Image getting 5% back on gasoline?! In today’s world, where gas prices as so high, getting 5% back can be quite substantial.

The trend towards offering cash back, in general, is increasing for a variety of reasons. The uptick in gas prices, the higher percentages being offered by card issuers, and the increased competition being faced by credit card issuers as well, are all contributing to the larger numbers of cashback credit cards being offered.

Wait a minute, you might be asking, how do these types of rewards programs really work? How can the credit issuers afford to give me a percentage of the cash back? Why are they letting me get away with such a smart financial move? When merchants accept payments by credit cards, they give a percentage of the transaction as a commission to their merchant services provider or bank. A lot of those issuers share that percentage with you. They do this in order to set themselves apart from the competition.

Now, rewards based cards are usually a lot better for consumers who pay their credit card statement off each month. Rewards based credit cards usually have a much higher APR too. If you don’t continue to pay your balance each month, the extra interest will defeat the purpose of the rewards that you’ve earned.

A lot of financial institutions also have cashback bonus programs with the top online retailers. You might be able to use your cashback bonus into larger rewards each instance that you redeem for gift cards at big name partners of the credit card issuers you’ve gotten your cashback credit card programs with.

It just doesn’t make sense to go without cashback cards if you have a good credit rating. If you plan to pay your bills on time, then these types of cards are the ones to choose (in my opinion). These cards reward their customers who spend money and pay back their bills wisely, as they would have done in the past before getting accepted for the card and as they will continue to do in the present when they get the card.