If a lender denies approval, first review the decision for errors or missing documentation. If issues exist, contact the lender to correct them and resubmit the application. Next, assess your credit score and financial health. If credit is the issue, dispute inaccuracies on your credit report via or a credit repair service. Consider securing a co-signer with strong credit or opting for alternative lenders like credit unions or peer-to-peer platforms. Adjust loan terms, such as reducing the amount requested or extending the repayment period, to improve affordability. If rejected due to income concerns, provide additional proof of stable earnings or explore government-backed loans like SBA programs.

The steps above address common causes of denial, such as credit score inaccuracies, insufficient income, or documentation gaps. Data from the Consumer Financial Protection Bureau (CFPB) shows that 25% of consumers have errors on their credit reports, which can directly impact lending decisions. Correcting these errors can boost approval chances by up to 30%, as noted in a 2022 Federal Reserve study. Securing a co-signer can increase approval rates by 40%, per a LendingTree analysis. Government-backed loans, like SBA loans, have a 90% approval rate for small businesses, reflecting their favorable terms. Alternative lenders approval rates range from 30-50%, depending on risk tolerance, offering viable options when traditional lenders fail. Proactively addressing these factors demonstrates financial responsibility, increasing lenders’ trust and likelihood of approval.