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What should I do if I have been refused a loan?

Bad Credit Loans

Secured Loans > What should I do if I have been refused a loan?

What should I do if I have been refused a loan?

If you’ve recently been refused a loan, then there are certain steps you can take to help you to understand why and to improve your financial situation to receive credit in the future. Discover what you should do if you’ve been refused a loan by a lender and why a bad credit loan from Evolution Money may be the solution.

Check your credit score

After being refused a loan, you should ideally check your credit score by requesting a copy of your file from the credit reference agency. The lender or credit card company should be able to let you know which credit reference agency they used to carry out the automated credit score check. However, your file is likely to be with all  three UK main agencies, Equifax, Experian and TransUnion.

A lender doesn’t need to provide you with a detailed explanation as to why they refused your loan application, although they may be able to point out some concerns on your credit reference file.

Once you’ve received the information, you should carefully assess your credit history and personal information such as your address, and recent credit or loan applications for any mistakes or potentially fraudulent activity. If you spot any concerns, make sure you inform the credit reference agency as soon as possible and provide relevant information to allow for an investigation.

Avoid applying for more credit

Try to avoid applying for more credit after being refused for a loan until you are aware as to why your application was unsuccessful, and you are in a better financial position. All applications for credit cards and loans, whether they are accepted or refused, will be documented on your credit file and affect your credit score. Too many applications within a short space of time may also prove unappealing for some lenders.

If you’re struggling to eliminate previous debt, then you may consider contacting a debt advisor for a free and confidential chat. You may also want to consider alternative borrowing options to a loan or credit card such as credit unions or the social fund. However, before making any financial decision and borrowing money, you should first research the terms and conditions and have a good understanding of the commitment to avoid more severe financial difficulties in the future.

Improve your credit score

If you’ve been refused a loan due to a bad credit score, then you should consider taking some simple steps to improve your credit score. A higher credit score may result in you being able to benefit from more competitive rates of interest, access to more loans and borrowing options in the future.

Once you’ve checked for and resolved any mistakes on your credit file, you should make sure you are registered on the electoral roll and that you keep your credit utilisation low to demonstrate you can responsibly manage your finances.

To improve your credit score after being refused a loan, you should also focus on paying off any outstanding debt and making all outgoing repayments and bills on time and in full.

Apply for a Bad Credit Loan from Evolution Money

If you’ve been previously refused a loan, then applying for a bad credit loan from Evolution Money may be the solution you need to help you reach your financial goals. We like to say ‘yes’ to our loan applicants and our specifically designed secured loans are ideal for customers with a bad credit score and who may have struggled to be accepted for a loan elsewhere.

At Evolution Money, we consider more than just the numbers on the computer screen and consider each applicant’s individual circumstances before making a decision on a secured loan rather than relying solely on a credit check. This means that even with a bad credit score and previously refused loan applications, you may still be able to borrow money with us.

Our flexible bad credit loans range from £5,000 to £50,000 and can be used for a wide range of purposes from debt consolidation, to purchasing a car, paying for a wedding or covering the costs of home improvements. All we ask is that applicants are aged 21 or over, own their home and live in the UK. We’ll also carry out an affordability check to ensure you can comfortably afford the repayments each month.

To apply for a bad credit loan from Evolution Money, fill in our straightforward secured loans application and receive a no-obligation quote. Or call 0161 814 9158 to discuss your borrowing options with one of our qualified loan advisors.

Please note that rates of interest may vary and failure to make your monthly repayments on time and in full may result in more severe financial issues and the potential repossession of your property.

Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
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