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What to Do When Your Loan Application Gets Rejected

By January 8, 2021 No Comments

Taking out a loan can be helpful, especially if you are about to take on a particularly expensive project. It could be a home renovation, a car purchase, an overseas trip and so on. Whichever it is, one thing is certain: getting quick cash through your loan ensures that you have enough money for the things you need and want to do. 

However, you should know that not all loan applications get granted. 

With that said, you shouldn’t give up right away after having your loan denied. There’s another way for you to still secure an instant cash loan in Australia, even after your bank’s big ‘NO’. This is by turning to non-traditional lenders. 

If this is your first time discovering this option, allow us to help you out! In the sections below, we will walk you through some fundamentals you need to know when turning to non-bank lenders: 

The Difference Between Banks and Non-Traditional Lenders 

Having your loan application rejected can be a painful experience, but you must understand why it happened. On that note, here are the basic qualifications you must meet for traditional lenders to consider your application: 

  • You must have a good credit history. 
  • You must have a steady job. 
  • You must have a consistent source of income. 

Failure to satisfy any of these may result in your loan application’s quick rejection. This isn’t the end of the story, however. You may work on improving your credit score or find a good source of income, for example. All of these may make your application look more favourable the next time you submit it. 

However, if you are pressed for time or are struggling with executing such lifestyle changes, you can turn to non-bank lenders. 

Taking out a Loan from Non-Traditional Lenders 

Fundamentally, non-traditional lenders are institutions other than banks or credit unions that offer loans to its customers. Further, they do not hold a banking license. Rather, they are regulated by the Consumer Credit Code and the Australian Securities and Investments Commission (ASIC). 

One of the biggest benefits of choosing non-bank lenders is that they are highly flexible. Their rates are adjustable—to the point that they may even give you a much better deal. 

On top of that, non-traditional lenders also make an effort to understand you and your circumstances. From there, they can offer the best advice as to the type of loan you must get. They also tend to be helpful, especially when you need quick small loans for your individual needs. 

How to Take a Loan from Non-Traditional Lenders 

If this is your first time taking out an instant cash loan in Australia from a non-bank institution, follow these steps for a safe and successful loan application:  

1. Do Your Research

Before proceeding with a lender, it’s best to search around for options first. You can do this easily by searching online and reading reviews left by previous customers. 

2. Think About the Type of Loan That Works Best for You

Once you’ve started talking with your chosen non-traditional lender, they will provide you with various choices. Study them carefully and go with the one that meets your financial needs and suits your lifestyle. This ensures that you will be able to repay the loan on time. 

3. Consider the Interest 

Before finalising your choice, ensure that the interest rate is right for you. Once you’re all set, go ahead and take out your loan! 

Conclusion 

Loans are instrumental in helping you secure your needs or take on an expensive project. However, you should anticipate that not all loan applications are granted by the bank. Fortunately, if your loan is denied, there are other options you can explore, such as turning to non-bank lenders. They offer more flexibility when it comes to rates and payment options. Ultimately, they consider your situation and strive to offer you the right loan for your needs and circumstances. 

At Fundo, we’re all about satisfying our customers with instant cash loans in Australia. If you’re looking for a stress-free loan application, fast funding and flexible repayment options, talk to us today and we’ll be glad to help!  

The opinions expressed in the Blog are for general informational and entertainment purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific investment product.  It is only intended to provide education about the financial industry.  The views reflected in the commentary are subject to change at any time without notice.

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