It’s a familiar story: you want to take out a loan so you approach your trustworthy, reliable, traditional bank for a helping hand. You’ve been planning a big overseas trip with the family. You want to finally carry out those renovations on the home. You want to buy your dream home. No matter your reason… you are shocked to find the bank said no. This can be deflating to say the least.
At this point, many people give up and throw the towel in. Not many consider whether it is possible to get a loan after the bank said no. But it is possible. If you are willing to test out non-traditional lenders you will have much more freedom when it comes to taking out a loan. With a little research, you can head on the trip, do those renovations or purchase your dream home. Here’s how!
Why The Bank Said No
Not everyone fits the same mould when it comes to taking out a loan. Yet this is exactly what traditional lenders are wanting you to do. All traditional lenders, such as banks, are looking for the same thing:
- Good credit history
- Steady job
- Consistent income
If you fall in one or all of these areas, then you are likely to find that the bank said no to you. Don’t worry, you aren’t alone. As disheartening as it can be to hear those words, it doesn’t need to mean the end of your dream.
Your first option is to consider whether you can meet the bank’s requirements. This may mean you need to spend the time working on and raising your credit score, or even changing jobs to ensure you have a steady paycheck coming in week after week. This may all seem simple enough, but it requires huge lifestyle changes that may not be an option for you.
The great news is also a way to take out a loan without their help. The second option is to step away from the norm and consider non-bank lenders.
As the name suggests, a non-bank lender is an institution, other than a bank or credit union that offers loans to its customers. These lenders don’t hold a banking license but are highly regulated by the Consumer Credit Code and the Australian Securities and Investments Commission (ASIC). When the bank said no, they more often than not will say yes.
There are many benefits that come with choosing a non-bank lender, most-importantly their ability to be flexible. Non-bank lenders have the ability to be flexible on their rates and who they offer loans to. It is this reason they are a perfect choice after the bank said no.
You also could end up with a much better deal than you would have with a bank. Banks are very strict in their criteria and don’t take the time to consider the personal history of each loan application. A non-bank lender will get to know you and your circumstances and will be able to offer the best advice on what sort of loan you need. They tend to be much more helpful than banks when it comes to meeting your individual needs.
How To Get A Loan After The Bank Said No
As disheartening as it can be to be told no, there are options available to you. If you are prepared to walk down the path of a non-traditional lender, you may just find it was a blessing in disguise. Here’s how to go about taking out a loan:
- Shop around: Do your research and shop around for a non-bank lender you can trust. It is always a good idea to check out the reviews and what other people have to say about the business.
- Consider what type of loan works for you: Non-bank lenders will likely offer a variety of different loans depending on your needs. It’s important to choose the right one for you and ensure you are able to make the repayments on time.
- Consider the interest: One downside to going with a non-bank lender can be their interest rates. Compare different interest rates on offer and find the best one.
- Lock it in: Once you are ready, go ahead and take out your loan!
Get Your Non-Bank Loan Today
Australian Lending Centre is a non-bank lender that has your best interests at heart. We have more finance options than the average bank to save you time, money and unnecessary credit enquiries. Our specialists can guide you through the entire process from start to finish, to ensure you have the right documentation on hand to take out your loan.
If the bank said no, then give Australian Lending Centre a call today and start getting excited about that dream holiday or new car that you have had your eyes on.