What happens if you get rejected for a personal loan?
A friend of mine recently got rejected and they didn't give her a clear outline as to why. She is not sure if she can apply again in sometime or if she needs to apply to another bank. They just were not clear with her about it.
5 answers
She should get a notice of adverse action explaining why she was denied. If this is not given, tell her to request it because by law it should be provided. She will know for sure why she was denied.
They should notify her for sure. If she does not hear back, apply again but be sure that it won't be hurting her score. I know some applications for specific loans can actually hurt when you get rejected.
In most cases, you get notified by mail, e-mail, or phone call. Sometimes all three. They will state you have been rejected and give you an outline as to why. Some personal loans come with a cost even if you get rejected in the form of hurting your credit score, as mentioned.
I think everything was covered already but I just wanted to add that when I was rejected, I waited a month and was able to get the personal loan from the very place that declined me. This came down to raising my scores over 700. I was able to go from 689 to 703 and they accepted it.