Find Out Why & What You Can Do Next
Every day people are turned for loans for a variety of reasons.
First of all you must ask yourself why you wanted the loan. In our experience, one of the most common reasons for wanting a loan is when it is to be used as a consolidation loan (one loan to pay off other debts), and this may actually be the cause of your loan refusal. Due to your debt levels, your credit rating isn’t high enough to be accepted for a loan to pay off your debts,and the more loans you apply for, the worse your credit score gets and the further into debt you are. And the circle is repeated.
Even if you weren’t looking for a consolidation loan, your debt levels may still be the reason for your refusal. If this is the case, don’t worry! There are still plenty of options for you.
Debt Assist UK are NOT a loan company.
We believe in long-term solutions rather than short-term fixes. If you want help to get you back on track and debt free, use the contact form below for no- obligation help and advice.
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Why Do You Want The Loan?
- As we have said, one of the biggest reasons to get a loan is to pay off your debts (known as a consolidation loan), the idea being that one debt is better than many. And in some cases this may be true, but it’s certainly not suitable for everyone. In which case, we can offer alternative solutions to managing your debts.
- Is the loan to pay for something you ‘want’? If so, and you need a loan to pay for it, you must ask yourself if this is something that you ‘need’. If not, try to manage without it, or start a savings plan. We all know the feeling of getting something on credit and then begrudge having to pay it back once the initial buzz of owning something new wears off. As cheesy as it sounds, if you save up for something you really want, it feels as though you’ve really earned it.
- If the loan was ‘just to see you through’, another popular reason, then you need to seriously look at why you need the loan. Can you maintain your lifestyle on your current income? If not, a loan isn’t the answer. You need to take control of your finances and budget your finances (I know this isn’t the easiest thing to do). Our trained advisors can help you with this.
Have you tried for, and been refused, credit? Not sure why? Or, how to sort it out? We are here to help, as it’s important to understand why you refused credit before applying for more credit. This can lower your credit score and further reduce your chances of being accepted.
Learn more here.
Increase Your Credit Score
Your credit score is a rating based upon your past credit history. We are seeing a growing number of people asking questions about their credit score, and how it can be improved, particularly once they have completed an individual voluntary arrangement (IVA) or debt management plan (DMP).