Having your loan application being turned down by financial institutions and banks available in Singapore can be overwhelming. This means you won’t be able to obtain the funds you are in urgent need of. And at the same time, you may not be certain what the actual reason may have been that got your money lender loan application rejected to start with.
There are a lot of reasons why your payday loan application was turned down. But regardless of the reason, it could be a wake-up call for you to take a good look at your finances to ensure you have a good credit standing thus increasing your chances of your money lender payday loan being approved in the future.
Read Through Your Credit History
One place for you to start is by figuring out the issue that causes your personal loan being rejected is by going through your credit report. You can get a copy of your credit account report from the Singaporean Credit Bureau for a minimal fee of $6.42.
From there, you may get a better picture of what might have gone wrong. You may have taken multiple credit lines, or be lacking a credit history and even have too many earlier late repayments. This will clearly show you the reasons that contributed to your money lender personal loan application being turned down by your moneylender.
Pay Off The Existing Debts
If the reason why your loan application was rejected by the moneylender was having too much debt, you may start by considering a plan to repay all your debt before you apply for another loan. You may also decide on beginning by paying off those loans that have the highest rates of interest. You may choose to clear the smaller loans this way you will end up having less debt to pay off.
By paying off all your credit card bills not only enhances your credit score but it also positively affects the totals of your Debt Servicing Ratio (TDSR). For a borrower, this indicates that the portion of your salary tied to debt is much less. This makes it a major positive for you when potential moneylenders are establishing your creditworthiness.
Even as you are in the process of clearing all your existing debts, it is advisable that you do not neglect any bill. No matter how unimportant it may seem to you. This may include things like telco bills as well as your utility bills. This is because they will have an unfavourable effect on your credit score as well.
Therefore take the time to go through all the bills for the month that need to be taken care of and have them paid on time. This will greatly help you in the process of rebuilding your credit history.
Avoid Sending Out Loan Applications For A While
Every time you send out an application for a moneylender loan, the lender always sends an enquiry on your credit report. This also applies to those loan applications that did not get an approval. It is important for you to realize that applying for several credit lines within short periods of time shows that you are desperately trying to obtain a loan. This increases the chances of your money lender loan application being rejected. When your loan application has recently been rejected by your money lender, you may consider giving it a break.
It is suggested that you wait for at least 3 months prior to you reapplying again. For the moment, you can work towards repairing your credit score. In following the highlighted issues from your credit records, you can then work out a solution to those issues.
Of importance is that you improve your credit status. This will make it possible for you to access loans every time you apply. But one thing to keep in mind is to take loans that you are able to repay and to ensure you repay your debts fully.
Increase Your Monthly Income
At times, your money lender loan application may be turned away for a payday loan since your income for each month is seen as too low. This to a potential money lender shows an increased likelihood of default.
Money lenders often times require you to have as a minimum, proof of 3 month’s steady salary. With that, they will be able to confirm that you have a steady income which to them shows that you are more likely and able to repay fully your loan amount.
For those borrowers whose wages are based on commissions, they may have a hard time convincing lenders that they are creditworthy. This is because there is a chance that your lenders may think twice before granting the money lender personal loan. This is because your earnings may be considered to be inconsistent thus the chances of your defaulting are seen to be higher. It is important that you make sure that your earning for each month is at most stable. This will greatly improve the likelihood of your personal loans being approved easily.
You can consider taking up a second job as a way of increasing your monthly earnings. There are many avenues that are currently available for Singaporean to make some extra cash. You may check out private tutoring positions or even online jobs available in the Singaporean market and even worldwide.
Having your loan application getting turned down by financial institutions and banks can be overwhelming. It, however, can be a wake-up call for you to keenly look at your financial standing. You can start by going through your credit report for starters.
If the reason why your loan application was rejected since you had too much debt, it may be the time you considered setting a plan to repay all your existing debt. It’s advisable that you wait for about 3 months before reapplying for a loan once it’s been rejected.
Even then look at possibilities if increasing your monthly income as it can sometimes affect the approval of your loan if it’s considered as too low.