How to Apply for a Loan Even If You’re Rejected

Setting the Stage: Picking the Right Loan Officer

If you are not in the best financial shape ever and have some problems with credit, there is definitely justification about worrying about whether or not your loan application will be approved. Before you go in to apply for your loan, it is a good idea if you are worried to talk with your loan officer about it first.

Your loan officer will most likely give you a good idea about the chances of your loan getting approved or rejected. If the outlook is grim, you might want to try finding another loan officer in the bank, or even go to another bank where perhaps you will have better luck. If your chances look a little brighter then it is time to move ahead. Either way this step can often help stop yourself from wasting time on a loan that is going nowhere.

Preparing Before Your Loan Application

Preparation is exceedingly important when you are going for a loan application. Banks do not like to do business with people who only seem to have a vague idea of the shape their finances are in, especially when those finances aren’t in the best shape to begin with.

You want to impress your loan officer with how much you understand your finances. Know your numbers, have the facts and the figures ready to back it up and show the loan officer exactly what will happen with the loan and why you need it. As long as you are on the ball your loan officer will be impressed and your chances of getting the loan increased.

For example, if you are going in for a personal loan, you will definitely want an up-to-date estimation of your net worth, as well as any other important financial documents. If you are going for a business loan, you will need quite a bit of information: tax information for previous years, estimated profit and loss projections for the next two or three years and things of that sort.

Preparation is a key step in keeping your loan from being rejected.

If Your Loan Request is Denied

Just because your initial loan request is denied doesn’t mean that it is the end of the road for you. Many people believe this, however and give up after the first denial.

Persistence and assertiveness are the keys to winning your loan request even if you’ve been rejected at first. You might think you need to go to another bank, but there are good chances that you will eventually win out in the end with your original bank.

The first step is to return to the loan officer that turned you down. Ask him to explain why he rejected the request. This will give you good information in general on what makes a bad loan application, as well as giving specific advice on your own loan. You can also ask him what it would take for you to have your loan approved after it has been rejected.

Remember, your bank works for you, you don’t work for your bank. Even if the chances of your loan being approved at this point are slight, take the time to learn about the whys and what to do to improve your chances.

Sometimes this step in itself is enough to get your application approved. Your persistence and willingness to talk to the loan officer has won him over to your side and your application is approved.

If this still doesn’t work you can try finding a more senior loan officer within the bank. Many times junior loan officers are not allowed to give out loans to those with bad credit no matter the situation, and you will want to talk with a more senior loan officer who will have more latitude in working with you. If no one at the bank is interested in helping you after you’ve been denied, then it is finally time for you to head off to another bank.

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