If you get denied a personal loan by one bank, will you be denied by all other banks?

Niki asked:


I am wanted to take out around $5,000 for personal reasons. If I get denied by one bank, is it useless to keep trying at other banks? I just want to know before I even bother to try and get a loan. What do they base loans upon anyway?

Todd

Tags: Banks, Loans, Personal Loan

This entry was posted on Friday, December 26th, 2008 at 4:55 am and is filed under Personal Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “If you get denied a personal loan by one bank, will you be denied by all other banks?”

1. davelennv Says:
   December 27th, 2008 at 8:27 pm

   Not necessarly. It depends on the bank, their criteria for giving loans, etc. Some criteria they look at, and will place different weights upon are, your credit score, length of employment, income, how well you have paid bills in the past.
   Basically the bank wants there money back and without some sort of colletral they can use, the chances of getting a personal loan are low.
   I would call another bank and give them your application over the phone, and see what they say. Ask them why you were turrned down too.
   Also look in the yellow pages under loans and see what type of private lenders there are. They are more apt to giving you a loan. You also will have to pay a higher intrest rate, but its worth a shot.

2. Doctor Deth Says:
   December 28th, 2008 at 6:59 pm

   for an unsecured loan that size, probably yes, you will be denied everywhere - try a finance company as opposed to a bank, but expect a lot higher int rate if they approve - based on credit score, existing debt to credit limit ratios, income

3. Ashley T Says:
   December 29th, 2008 at 6:19 pm

   I just want to add something to the other answers posted. Be careful as far as asking alot of different banks. Everytime you go to a bank or finance company, or any where to get credit, they have to run a credit check. This will show up on your credit score and can decrease the score each time. It doesnt look good to have a long list on your credit report where you have went all around town trying to get credit.

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