There are three common reasons people can't get a debt consolidation loan: lack of income, too much debt, and faltering credit scores. Your debt consolidation lender can't just take your word for it when you say you can afford to take on a loan. It needs to be sure you can make the payments
A responsible and authorised lender can not promise guaranteed loans for the unemployed. The reason for this is simply because all lenders must carry out credit and affordability checks before approving a loan. However, we do have a high acceptance even if you have bad credit. There are many loan sharks out there guaranteeing loans to customers, and this puts good people into debt problems when they have difficulty paying back the loan they couldn’t afford to get. Click here to learn how to identify loan sharks.
If you are unemployed and are on benefits, you can apply for a loan with us. Many people think that doorstep loans are the only kinds of loans available for people on benefits since you do not need a bank account and approval rates are higher. However, doorstep cash loans for the unemployed are often not well regulated and may be unsafe. It is a lot safer and easier to apply for loans online with Cashfloat. If we can not offer you a loan at this time, we can act as a broker and help you find another lender better suited to your needs.
Debt consolidation lenders don’t decline loans for no reason. To the contrary, they have plenty of incentive to give out as many loans as they can to qualified borrowers. It’s how they make money. So, if a lender declined your loan application, it was for a good reason (at least to the lender). Understanding that reasoning won’t just give you closure; it will help you understand your own situation so you know how to improve it before you seek another debt consolidation option.
Your debt consolidation lender can’t just take your word for it when you say you can afford to take on a loan. It needs to be sure you can make the payments. The main way it does that is by looking at your current income level in relation to your expected loan payments. If the lender doesn’t think you can keep up with your loan, your chances are slim. You can ask for a smaller loan, but that likely doesn’t help.
Your credit score indicates your creditworthiness, in a sense. Are you safe to lend to? Can you be trusted to keep up with your payments? If your credit score is low, your chances of approval are low, but it’s not impossible.
Unfortunately, there aren’t many short-term solutions for a low credit score. You might be able to push your lender to offer you a loan, but it will likely be a high-interest loan, which will cost you more money in the end and can defeat the purpose of getting a debt consolidation loan in the first place.
Once you understand why you were denied your debt consolidation loan, it’s time to take the next step: learn to live without it.