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What to Do If You’ve Been Denied Consolidation Loans for Bad Credit

Introduction

According to a recent report from the Australian Financial Security Authority (AFSA), the number of debt consolidation loans taken out in Australia increased from 2008 to 2018 by 32%. The increase in these types of loans is due to several factors, including an increase in consumer debt and home loan interest rates. While debt consolidation loans in Australia with bad credit can be an excellent option for many people, they are not suitable for everyone. If you are considering taking out a debt consolidation loan, it is essential that you do your research and find out if this type of loan will work for you.

If your credit score isn’t what you want, you may have difficulty getting approved for a consolidation loan. If you’ve been denied, don’t give up! There are many reasons why people have been refused loans in the past. The good news is that options can help even those with bad credit. Here are some tips on what to do if you’ve been denied consolidation loans:

Check whether you can refinance existing loans

Consolidating your existing loans is one option, but if you don’t have good credit, you may not be eligible for a consolidation loan. If this is the case, another option is to refinance your existing loans.

Here are some options for refinancing:

  • Credit unions
  • Local banks
  • Online lenders

Consider a co-signer

If you don’t have a co-signer, you may be able to get a credit card with bad credit that will help improve your score. However, if the lender denies the application because of insufficient income or other factors, it’s best to wait until more income has been established before applying again.

A good strategy is to wait until after tax season when most people receive cash bonuses and employers’ payments.

Split up your loan request

If your credit score is low, you may need to split your loan request into multiple smaller loans instead of one big one. This will help improve your credit score and give you a better chance of obtaining a consolidation loan.

If you can’t get debt consolidation loans in Australia with bad credit, try looking for other options, such as payday loans or even retail store credit cards (as long as they don’t come with high-interest rates).

Improve your credit before reapplying

If you’re denied a consolidation loan because of bad credit, there are several steps you can take to improve your chances of being approved the next time around.

  • Add a new credit card. If you don’t have one, apply for one and make sure it’s approved.
  • Pay off old debt. If you have multiple debts with high balances, paying them off will help strengthen your overall financial health and show lenders that you’re serious about getting out of debt.

Use bad credit loans to improve your credit score

If you want to improve your credit score, it’s essential to be patient and disciplined. You can’t improve your score overnight. Using bad credit loans will help you build up your credit history, which will eventually help improve your overall score.

It’s also important to remember that while all lenders are different, they all have one thing in common: they want to work with you so that they can get paid back on time!

Conclusion

If you’ve been denied a loan due to bad credit, it’s essential to know that there are options that can help. By looking at your options and taking steps to improve your score, you can be approved for a loan in no time!

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