It's getting harder and harder to get a loan

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Lenders are closing the door on riskier consumer loans. It seemed like it was just the other day that we had money for everybody, but as I wrote in this post, how quickly it all changes! In light of all the foreclosures and dismal economic news, loans to people with less than perfect credit are becoming few and far between.

Have you been unexpectedly denied a loan? If so, there still may be hope. With a little more effort, you might be able to negotiate a counter offer, basically a win-win for you and the lender...

First, pull your self together and ask the lender if you can talk with them. You want to gain some insight about why you were turned down for the loan. Be willing to discuss your credit history and some of those long forgotten medical collections or that time not long ago when you were late with your credit card payment. Your credibility is at stake. Knowing what is on your credit report and being able to discuss it rationally is very import step in gaining this credibility.

Would the lender agree to make the loan with another borrower on the note with you? Someone with very good credit, a stable job, and who has lived in the area for an extended period (5-10 years)?

Do you have anything that you could offer as security (collateral)? The family silver probably won't work, but your Jet Ski or Quad might! Many lenders will be more willing to take your car as collateral over recreational merchandise simply because cars are much easier to take-back (sugar coating on repossess) if the deal goes bad.

Are there credit issues that need to be resolved before the lender is willing to talk further? Sometimes, things like large collection accounts and money judgments will keep you from qualifying for a loan. Collection accounts oftentimes turn into money judgments. With a money judgment, the creditor can seize your wages, and attach liens to your assets. Because of the potential that a judgment has on impairing your income, many lenders will not loan money to you unless and\or until these are satisfied.

No doesn't always mean no. Keep in mind that the lender wants to make loans- needs to make loans. By asking a few questions and working with the lender, you just might be able to help turn that no into a yes.