How to Know If You Are Ready to Reapply
Sometimes, loan applications get rejected. It’s nothing personal, the situations between the applicant and the financial lender simply weren’t right for the loan to proceed further. It happens. So when can you reapply for a loan?
Regardless, if you are that applicant and thought you were a shoo-in, and had already started planning your future with that extra injection of finance, you are likely to be a little disappointed, if not completely gun-shy to try again. It is important to remember that a rejection of an application – for whatever reason – is simply a one-time dealing. A few adjustments in the financial aspects of your life and you could find yourself a much more viable candidate. Swoosh provides a few universal practises to help see if you are ready to reapply.
Has your status changed from when your application was first rejected?
Firstly, it is important not to immediately rush and ‘try again’ with another financial institution once your application is rejected. For lenders to remain profitable, they all follow stringent guidelines that will likely be similar to each others’. This means you are likely to be rejected if you don’t change your financial habits. After all, too many unsuccessful loan applications on your credit report will be a huge red flag for the next lender to review your application, as they will say to themselves: ‘Why has everyone else said no? What are we missing? Perhaps we should think twice…’
Secondly, don’t give up and let your shoulders hang limp with defeat. If they haven’t explicitly stated, ask your financial institution the reason why your loan application was rejected. From there you will learn two things:
- What that lender is specifically looking for in a loan application
- How you need to align the financial aspects of your life to conform with that particular criteria.
This is the best platform in which you can work towards making yourself a better candidate on a loan application.
Check credit score
Credit scores aren’t something we manually operate ourselves, so frequently reviewing them isn’t something many Australians do. Change that. It is imperative when thinking about reapplying for a loan application to do this, as your credit report will show your history of dealing with debt, and function as a lender’s main resource to determine whether you will meet your financial commitments. You can easily check your credit score for free with Equifax. You can get one free credit report per year so use it wisely. The first time around, you may have not considered your six credit cards, excessive spending habits and late bill paying to be all that damaging to your credit score. Once you review your history, however, you could have some alarming findings that act as a much needed wake up call to reign in those harmful tendencies.
Unburden yourself of unnecessary debt
When you have had too much to drink, do you sober up by ordering more tequila shots? No, that will likely to you being ejected from the bar. You should think of your loan application and financial institutions in the same way.
If you have a series of bills sent to default, repeatedly neglect to pay your rent, and are stacking up the balance on your credit cards, then any lender will see you as unfit for a loan. As much as they would like to help, they must think of themselves first to remain a viable business, and excessive existing debt doesn’t invoke much confidence in a loan application. Before you reapply, work hard towards tightening your expenditures and covering your financial obligations in a timely manner.
Do away with wads of credit cards. Forget lavish outlays. And not just for a month or two, either. Lenders need to see an extended pattern of responsibility to consider entrusting you with their money, as loan repayments can last several months, years, and even decades. By proving you are capable and committed to honouring what you owe in other aspects of your life, then you will instantly become more favourable as a loan applicant when you decide to reapply.
Are you ready to make another application?
Have you adjusted your financial situation since your last application? Believe you are ready to meet financial commitments? Swoosh offers personal loan amounts up to $5000 with fixed term repayment schedules that are easy to manage within your weekly budget. For more information on how to get started, contact Swoosh today.