If you are having difficulty obtaining a loan then follow our 5-step process (listed below) which might help you to improve your borrowing capabilities so the next time you apply, your loan is APPROVED!
Find out why you were declined?
Not all finance companies will tell you why you were declined, in fact many will simply say "you didn't meet our criteria".
Here at Ume Loans we will always be honest and transparent with you and explain to you why we were unable to approve you.
If you know why you were declined in the past you can repair your financial situation so you can be APPROVED in the future.
Bank Statement Conduct
Lenders have a legal obligation to lend money responsibly. This means that if it looks like you can't afford another loan then they can't legally lend it to you. Lenders want to understand that you can manage your money effectively. One of the ways a lender will assess your financial circumstances is to review the way you manage your bank account. Usually, a lender will review the last 3 months of your bank statements.
Some things that might give the lender suspicion that you cannot afford the loan are:
- Too many pay day loans
- Too many pay advance loans
- Missed or bounced payments on existing loans
- Excessive gambling
- Your centerlink income is more than your working income (make sure you are banking all of your income)
- Withdrawing all of your income in cash immediately after it is deposited
- Large quantity of cash transactions in and out
- Excessive transactions at hotels/clubs or pubs
- Bank balance in negative too often
- Bank account overdrawn too often
- Too many overdrawn bank fees
So, knowing this, check your last 3 bank statements and start to manage your bank account to minimise these in your next 3 months bank statements.
Credit File Conduct
At Ume Loans we love to give people the financial second chance they need, so having some small defaults on your credit file is not always going to lead to a decline. But other lenders are not the same.
If you know you might have some defaults or bad credit then don't waste your time applying for a loan with lenders who won't take the time to understand what happened in your life at that time. We understand that bad things can happen to good people, so our team are trained to ask questions and understand your situation before making a decision based just on your credit file.
It's not always possible to have defaults removed from your credit file but what you can influence is how many times you apply for loans. In fact, this is one critical factor that many lenders look at. The more times you apply for loans the lower your credit score will go, so only apply if you really need the loan and if you are confident you will be approved.
Number of debts
It's simple really, the more debts you have the more complicated or difficult it can become to manage your finance and bank statements. If you have a number of smaller debts like Afterpay, laybuys, payday loans etc then we would recommend to payout and close the smaller ones to minimise the number of debts you are managing to pay off, making your financial situation simpler.
Talk to us
If you are unsure of exactly what you need to focus on to improve your financial situation so you can be APPROVED next time you apply for a loan, please reach out to us and we will discuss your situation with you and help you understand the best ways to improve.
At Ume Loans, we don't have secrets about how we lend and if we can help you improve your financial situation so that we can lend to you in the future, that's a win/win for us both.