How to get a loan if you have already been refused

April 17, 2017
Getting approved for a loan with less-than-perfect credit is difficult. The good news is that if you are not able to borrow money from a traditional bank, and your credit card applications are rejected, you still have options.

At least one of these alternatives can actually turn out to be more convenient than applying for a traditional personal loan from a bank. Read on to find out which kind of loan will get money in your pocket faster than any other option.

First, though, here is what you need to know if you want to borrow money after your loan and credit card applications have already been refused.

Stop applying for bank loans and new credit cards

The first thing to do if your past loan applications have been rejected is to stop applying for these common forms of credit. These applications go on your credit report even if you get rejected. This could make it even more difficult to get loans in the future because credit card companies and banks will be able to see all these rejections when they research your financial history.

A good first step: a secured credit card

If you simply need money to buy food or other necessities from time to time, a secured credit card might be the best answer. These cards work just like regular credit cards. When you use it, and pay it off, the transaction is reported to the credit bureaus just like a standard card. This can be a good thing for your credit history.

The catch is that cardholders must make a security deposit before they can use this card to make purchases. So, although it is a good option, especially because it helps to build a positive credit score, a secured card may not help in the short term (if you need funds quickly).

Get money quickly with an online personal loan

In many ways, online personal loans are the best option for people who need money quickly. The providers of these loans are not overly concerned about your credit history. Rather, they look at your current ability to pay off the loan on time.

This means that all anyone needs to get such a loan is a steady job that provides the required amount of monthly income (requirements may be different depending on the loan provider). The only supporting documents that you need to provide are a pay stub and bank statement (or other evidence of steady income).

These loans are generally approved quickly, often within a matter of hours.

For people who have been turned down for loans or credit cards in the recent past, online personal loans are the most convenient option. Though you will have to provide evidence that you can pay off the loan, a poor credit history will not hurt your approval prospects.