This was a write-in question for Fox Business for some advice on getting a loan:

Dear Debt Adviser,
I applied for a home equity line of credit with my mortgage lender. I was denied, in part, because I’ve been late occasionally on my mortgage payments. I now have a credit score of 670 and a high-interest auto loan for $5,400 that I’d like to pay off. Do you have any financial advice for someone like me? Please help!
— Sherry

The response isn’t just about home equity. It’s about all kinds of loans, auto loans included.

The writer for the response piece starts out by labeling the most obvious problem the person ran into when they applied for for another loan. The person was denied because being late on their mortgage payments marked them as high-risk borrower. Their credit score was also dragged down because of that risk. The final reason, using the same collateral from the same lender.

That’s the bad news. Thanks to a weaker credit score and being high-risk due to late payments meant that the application was sent back denied. Where does someone go from there, though? Just because you were denied doesn’t mean it’s over. It just means that you need to take a different approach to getting the loan you need.

Start by doing what you can to raise your credit score. Get your current loans paid off, on time or early if you can manage. Don’t get any new credit unless it’s necessary. You’ll want to keep your balances as low as possible. If you can, make a rule of not getting another loan until everything you currently owe is paid off every month.

In order to achieve this goal, you need to set yourself up to succeed. Without a solid plan that you can commit to, it’s very likely you won’t be able to pull it off. Put together a spending plan that manages your current bills. Make sure a portion of your monthly budget is dedicated to setting some money aside for saving, which will help you with wiggle room should any unexpected expenses come up.

If you follow these guidelines, you’re going to see an improvement in your score. It’ll take some time and effort, but in the long-run, you’ll be able to get the loans you need.

If you need a car, now is the perfect time to stop in to Bayside Chrysler Jeep Dodge and sit down with us as we work to put you in the vehicle you need.  We provide the Queens area with top quality customer service and want to work with you to satisfy your car-purchasing needs. We love to say yes! Like us on Facebook and follow us on Twitter for more financial advice and monthly parts and service specials.

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