Getting Personal Loans With Bad Credit: Why Rejection is Not The End

There is a belief that a rejected loan application dents the chances of getting it approved elsewhere. But lenders are happy to assess applications on their own merits. In most cases, the reason an application for a personal loans with bad credit was rejected is down to something simple.From the point of view of the applicant, having an application turned down can be good news since it helps to identify where weaknesses lie and how to strengthen the application further. Perhaps some basic criteria was not met, some documentation was not provided, or maybe the loan sum sought was too much. Whatever the reason, there is a chance to put things right.Getting loans approved with poor credit is a tricky matter, so it is worth paying attention to the structure of an application. Once the loan criteria is met, and other factors are in order, getting a personal loan approved is no great surprise.Rejection Strengthens Your ApplicationRejection is something that we all have to deal with in life, but these experiences can strengthen us personally - it is the same with seeking a personal loan with bad credit. Every rejection provides applicants with a chance to fine tune the application.If an applicant is seeking a loan of $30,000, it may be rejected on the basis that their monthly income is too low. This can be the case even with a monthly income of $10,000, when the debt-to-income ratio is used. This ratio stipulates that only 40% of the income can be used to repay debts.This information then tells the applicant to reduce the sum they are seeking, since to get loans approved, with poor credit or not, the deal must adhere to the 40:60 ratio So, he may restructure the application to seek 2 separate personal loans, of maybe $15,000 followed by another $15,000 application after 3 months, when the existing debts have been reduced and credit scores improved.The Role of Bad Credit ScoresBad credit ratings are no longer the debilitating factor in loan applications. This is partly because the rating reflects past facts, so fails to show that someone who was in financial hot water a year ago, is fine now. Getting a personal loan with bad credit might be no problem now but not according to the score.Of course, credit scores are also calculated using facts, so fails to accommodate the circumstance of a missed mortgage repayment or loan default, like an unexpected redundancy. Sometimes even loans approved with poor credit is a fair outcome, though the score would suggest otherwise.Lenders understand this and so prefer to look for trends over a period of time, rather than plain numbers. That way, when ruling on the approval of a personal loan, more good borrowers can be accommodated.Basic Criteria to MeetAll loans have set criteria that applicants must meet before the more detailed financial aspects of the application are considered. The basic criteria for personal loans with bad credit are the same as any other, with age, employment and citizenship all covered. Applicants must be over 18 so lenders seek proof of age for a start.It is also necessary to be in gainful employment to get loans approved with poor credit. In some cases, they must be shown proof that the full-time job has been held for at least 6 months before the date of the application. They also want to know if the monthly income is sufficient, so deposit history of a bank account is usually necessary too.And applicants must be either US citizens or be a long-term resident with the relevant visa documents to prove it. Once these criteria are met, lenders will assess where the applicant can afford to make repayments on the personal loan. And if the application is rejected, simply go elsewhere.