Applying for a loan when you need it and being denied can cause both frustration and anxiety. According to ARC Private Lending, poor credit scores plague nearly 68 million Americans. If you can’t get a conventional loan from a bank, it’s good to know there are alternative lending solutions, including hard money lenders.

Hard money lenders can step in and provide a loan when many banks can’t or won’t. Looking for alternative types of financing can help relieve you of your frustration at being denied a loan. Plus, securing the money you need can ease your anxiety and solve your financial challenges. If you’ve been denied a loan, there are several steps you can take to improve your chances of being approved in the future:

The ‘Why’ Behind The Denial

First, you’ll want to review the reasons for the denial. If possible, address any issues that may have contributed to the decision. Do you have a low credit score? Is your debt-to-income ratio too high? If you answer yes to any of those questions, a bank is not the right path for you. Let’s explore your other options.

Consider Other Financial Institutions

Have you considered applying for a loan from a credit union or community bank? If you’ve been denied a conventional loan, this may be a viable option. Credit unions and community banks may have more flexible lending criteria than larger banks. But sometimes, they will still deny you. What then?

Consider Alternative Hard Money Lenders

Look into alternative forms of financing. This could include searching for a personal loan from online hard money lenders. A hard money loan can have a short or long duration and typically carries a higher interest rate than a conventional loan. However, it is a good alternative when you have been denied a loan elsewhere. This is a great option if you do not have high enough credit for financial institutions such as a credit union or bank.

Improve Your Financial Situation

Have you thought about working with a credit counselor or financial advisor? If you have the time to wait to obtain a loan, speaking to a professional that can help you improve your credit score may put you in a financial situation that enables you to secure a stamp of approval on your next loan application.

If you cannot secure a loan, alternative lending solutions can often provide what you need, particularly for real estate. It’s good to know that there is a place you can turn to when you need a solution. Contact ARC Private Lending today to see if a hard money loan is a good option for you!