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You found a guarantor, searched for the best lender, filled in the long-winded application form, only to be met with “computer says no”.
Of course, this can feel frustrating, but it’s far from game over for your loan hunt. We asked an expert from the UK’s leading provider of guarantor loans what steps you can take if you’ve been declined for a guarantor loan.
Many of us simply see the word “declined” and then close the browser tab. But if you don’t identify where your application fell down, then there’s a good chance the same thing will happen with the next company you apply to. Submit multiple applications for credit in a short space of time, and you’re likely to start seeing damage to your credit score – which is probably the last thing you need.
Log in to your account with the lender that declined you to see if it’s offering any sort of explanation. Check your emails from the company. If they’ve given you nothing to go on, it’s often worth a phone call.
Crucially, our contact told us that in most cases it’s the guarantor that fails the lender’s checks, and not the applicant.
Unfortunately some companies simply won’t help when it comes to providing an explanation, so in these situations, you can fall back onto “best practice”.
If you’ve been declined for a guarantor loan, it’s important to find out exactly why your application wasn’t approved so that you can hopefully avoid the same thing happening again, next time around. Too many decline applications in a short space of time can really harm your credit score.
A contact from one of the UK’s biggest guarantor lenders told us that it’s more often the guarantor that fails the lender’s criteria rather than the applicant.
Consider what your next steps should be with the help of our list above. Whether it’s finding a new guarantor, improving your credit score or applying for a smaller loan, it’s worth taking some time to review your options before applying again.
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