how to get money if loan declined

How Can I Get Money If My Bank Loan Was Declined?

There are a lot of reasons why bank loans continue to be popular.

They usually come with a comparatively low APR rate — an average of 8% for a two-year loan. Banks will usually offer loans to people with good credit, as opposed to those in the upper echelon of “excellent” credit.

And if you’ve been a loyal customer for years at a bank, it may be inclined to offer you discounted rates or other perks.

But sometimes bank loans are difficult to score, which can lead to some serious financial stress if you need cash for an emergency or to help with an important need. 

If you get a bank loan declined, here’s what you can do next.

Review Your Credit History

Typically, you may find a bank loan declined because your credit history isn’t quite up to snuff. It’s usually the No. 1 factor in whether lenders decide to offer a loan since it used to show whether you’ll likely be able to repay a loan responsibly.

This fact is true for most loans, including student loans and mortgages.

That means some issues in the past with accounts overdue or even bankruptcy can mean having a loan declined since it doesn’t meet the bank lender’s basic requirements. 

Your next step should be to review your own credit history by asking for a recent credit report. There may be mistakes that can be corrected and increase your chances of a bank loan the next time you apply.

Or by reviewing you may be able to pinpoint exactly what is dragging your credit score down and make steps to improve. 

Boosting your credit score may be easier than you think if you have a loan declined. Commit to making your payments on time, don’t push your credit card use to the maximum limit, and try not to apply for numerous credit cards or loans at the same time. All will help.

Look Into Additional Income Streams

One of the basic requirements for a bank loan is proof of income. If you have a loan declined, it may mean there is a history of employment and income instability.

In some of these cases, you may still be able to get some money if you reapply — just be sure you’re including all of your income sources, which can include everything from part-time work to child support payments.

You may also consider a side hustle or two that can bring in some extra cash and not conflict too much with your schedule.

woman trying to pay payday loan online with text Bank loan declined

Try Again For A Smaller Amount

Smaller loans shout “less risky” to lenders — and they’re more inclined to help you out. Even if the small amount isn’t near what you want or not, you can at least get started on reaching financial stability.

Take another look at your income and goals and play around with some loan amounts that will help in even a small way.

Get A Second Opinion

Just because you have a bank loan declined doesn’t mean you won’t be successful elsewhere. Your own bank is a good place to start, but bank loan lenders aren’t created equally.

Some will have different rates or different criteria used to determine who gets the loan they are after. Shop around — it will likely be worth your time.

Pay Down Your Debt

Your debt-to-income ratio is another huge factor in whether a bank loan is successful. When you increase your income while working to lower your debt, it’s like a one-two punch when you’re applying for a bank loan. 

Alternatives If You Have A Bank Loan Declined

Another popular option: consider other types of loans than a bank loan if you consistently have trouble with your applications. 

Many have found success with payday loans, which offer small amounts of cash through a short-term loan designed to help cover financial emergencies between paychecks.

At Carolina Payday Loans, Inc. the requirements are simply a driver’s license or identification issued by the government, your most recent paystub, and a blank check that’s from a checking account in your name that’s active.

Those who qualify for a payday loan at Carolina Payday Loans, Inc., can receive up to $500 as early as the same day they start the loan process.

And it’s easy to get started. Fill out the online inquiry form on our homepage and we’ll give you a call to guide you through the rest of the loan process.

It can take as little as just 30 minutes to qualify, and a payday loan is usually repaid when you get your next paycheck.

Get Started Today 

It’s stressful going through the bank loan process just to be rejected. However, you can easily get money if you have a bank loan declined. A payday loan is one such option for financial relief. Just start online, give us a call, or visit us today.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.