St. Thomas Auto Collateral Loans: Possible Reasons For Credit Rejection - Instant Loans Canada

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St. Thomas Auto Collateral Loans: Possible Reasons For Credit Rejection

Oct 01, 2013

Have you been always denied a loan? If yes, do you know what the causes are behind those constant rejections? As a borrower it is important that you understand the possible reasons why it is hard for you to be granted a credit or loan. This would help you secure loans easily the next time around. Listed below are some of the possible reasons why your credit or loan application was denied.

 1. Low Credit Score. Most, if not all, creditors take into consideration your credit score before they would grant your loan application. They secure a copy of your credit report from credit bureaus and check your credit behavior. The factors they will look into are how much you owe, who you owe and history of your credits. Aside from these, the number of times you have inquired about your credit status reflects badly on them. They would see it as a desperate move which would lead to the denial of your loan.

2. Erroneous Information. Often the reason for denial of loans is due to a mistake in the credit report. Thus, it is important that you secure a copy of the credit report which your credit agency used. Don’t worry as access to this would then be free. If ever you notice some errors on your credit status, contact the credit reporting bureau immediately and have them correct these mistakes so as not to impede your future loan applications.

3. Unemployment. Creditors won’t favor your loan application if they see that you are currently unemployed. Creditors always take a look at a borrower’s credit-worthiness before they grant loans. This is for their protection. They need to be secured that the borrower can pay the loan back. So if creditors categorize you as a high-risk borrower, they would instantly set your application aside.

If you’ve been constantly denied credit, take some time to review what the problem areas are. Correct them before you secure another loan.

 But I Need Instant Cash, What Is My Remedy?

 Whenever you see yourself being denied due to a low credit score or unfavorable employment status, yet you need cash fast, remember that St. Thomas auto collateral loans can help you. These loans are approved to individuals with bad credit scores or are currently unemployed. The only security required is your vehicle – free from liens and encumbrances. Once you can show the auto collateral loan agents that you are qualified, your approval won’t be a challenge.