Unity One Credit Union

Rejected for a Loan? Stage a Comeback.

Tue, Aug 20, 2019 @ 10:02 AM / by Alyssa Guillory posted in loans, Unity One Credit Union


shutterstock_1154320222Originally posted on the CUNA Financial Resource Center. Written by Dianne Molvig. 

Getting rejected for a loan can feel like a kick in the teeth. No way around it, rejection is painful. But consider looking at it from a different perspective.

Being denied for a loan tells you something you're not aware of or not acknowledging is going on in your financial situation. Take this opportunity to figure out what that is.

You can turn this around if you put your mind to it. Here's how to get started.

Find Out Why You Were Rejected

Upon reading "We are sorry but ..." in your rejection letter, you may feel the urge to pitch the letter into the trash.

Instead, read the whole thing. That letter will tell you precisely why your loan was denied. You have to know the reasons for the problem before you can fix it.

Were you late on paying bills? Are you already borrowing too much compared to your income? Maybe you need to work on paying down the debt you already have.

When you get a rejection from one lender, you may feel tempted to apply at other lenders, hoping you'll eventually get lucky. You're only postponing what you need to do—work to improve your credit standing. Also, each time you apply for a new card, your credit score gets a hit, bringing it down a few points.

Get a Copy of Your Credit Report

The denial letter will state which credit bureau the lender used in making the loan decision.

When you're turned down for a loan, you are entitled by law to a free "adverse action" credit report. This copy will not count against the free credit report you can get each year from each of the three major credit bureaus: Experian, TransUnion, and Equifax. Get a copy and check it over closely

It’s a good idea to review your credit report before applying for a loan to make sure everything in it is accurate.

What To Do If You Find Errors

Mistakes on credit reports are not uncommon. If you find any errors on your report, take three steps:

1.   Contact the credit bureau to report the error.

2.   Ask the bureau to send a corrected copy of the credit report to any lender that recently received the inaccurate one. The lender may reconsider your loan application.

3.  Get your credit reports from the other two credit bureaus to make sure mistakes don't show up there, as well. Clearing up a mistake at one agency doesn't mean the corrected information gets passed on to the other two.

If you feel the errors are the result of identity theft, report this immediately to the credit bureaus, your creditors, and law enforcement authorities.

Get Expert Help

To fix your credit problems, start by talking with the folks at your credit union. Someone on staff may be able to work with you to devise a credit repair plan. Or your credit union may refer you to a free or low-cost outside counseling resource.

Don’t lose hope. With a bit of work and discipline, your credit problems can be resolved, and loan rejections can be a thing of the past.

Contact Us

Read More

Tips for First Time Car Buyers!

Wed, Jun 20, 2012 @ 08:51 AM / by Erayne Hill posted in credit unions, loans, first time car buyers, first time car buyer


first time car buyer
It doesn't matter whether you’re a recent grad with your first real job or someone other than the typical first time car buyer, the car-buying process can be filled with an enormous amount of uncertainty. Check out these tips for some help:

Know what you can spend monthly. Do not purchase more car than you can afford. A good rule of thumb for first time car buyers is to add up all of your monthly debts and divide it into your monthly income. Do not go above 50%. If your auto payment is $250.00 and your other monthly debt is $750.00 then your total monthly debt is $1,000. Let’s say your monthly income is $2500.00. Divide one-thousand dollars by $2500 and your debt ratio is 40%.

Debt ($1000)/monthly income ($2500) = debt ratio (.4 or 4%)

Establish your vehicle needs. Purchase a vehicle that you need and one that accommodates your lifestyle. For example, you may not need the extra room from a large SUV if you are single. Consider the cost of gas and increasing insurance premiums. You can always rent these types of vehicles if needed or to satisfy your curiosity.

Do your research. Do not visit the dealership unprepared. Gather as much information as possible before going. Go online to www.carfax.com and get a report on your desired vehicle and get a carfax (www.carfax.com). This report will give you vehicle history like if the car has been in a collision. Knowing this may alert you to hidden costs. Also, you want to get information about the dealership. Visit the Better Business Bureau online and get reviews. Finally, try the old-fashioned way and obtain information by word-of-mouth.

Locate a convenient dealer. The dealership should be easy to access. Find a dealer with the most accessible staff with fantastic customer service.  This will be one of the most important transactions in your life as a first time car buyer; so, you will need as much assistance as possible.

Take a test drive. Virtually nothing is more important in your decision process than how you feel behind the wheel. How does the car feel when you are driving?

Determine your purchase price. Once you’ve decided what you like and have established what you can afford, it’s time to reach a purchase price. Visit NADA online at nadaguides.com, and get a retail price. Have this price with you once you reach the dealership. You do not want to pay over retail for the vehicle.

Secure financing. It’s always a good idea to have your financing secure before you reach the dealership; but if not, always check loan rates before arriving so you know your options as a first time car buyer. If you are a member of a credit union, check with your loan officer and take a pre-approval letter with you to the dealership.


Set up an appointment to talk with a member service officer about car loans right now by calling 1-800-628-5517.

Read More

Subscribe to Email Updates

Lists by Topic

see all

Posts by Topic

see all

Recent Posts