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So, you’ve applied for a loan and found out you were DENIED. You probably feel bummed, but you may also be wondering what to do next. Before you get up in arms about the situation, see this as a great opportunity. Now you have a chance to investigate any issues that are likely lurking on your credit report. Here are the next steps you should probably take:
- First, find out why you were denied. The lender will send you a letter letting you know what the issue was.
- Next, check your credit report. See if there are any late payments or accounts in collections that brought your score down.
- If you see anything on there that looks fishy, make sure you aren’t a victim of identity theft.
- After you’ve checked the problem and know why you were denied, you may want to consider a new lender.
Keep in mind that every time you apply for a loan, it pulls down your credit score a few points. It’s considered a hard inquiry. You’d do best not to keep applying for loans you know you won’t get approved for until you fix the issues on your credit report.