At Arsenal, we make every effort to approve loan requests. Unfortunately, sometimes we have to turn down loans to protect the financial health of the applicant and credit union. When we do not approve a loan, it is often because of two reasons:
- A poor credit history
- A high debt-to-income ratio, with debt exceeding about 40 percent of total income
If you get denied for a loan, don’t give up. Work on improving your chances on your next application by taking a couple of proactive measures:
- Create a plan to pay off old loans and credit card balances.
- Try to consolidate your loans and credit card balances into a loan at Arsenal to stop spending with credit.
- Implement a budget by comparing what you spend to what you earn. Funnel the money you save into paying off debt.
- Ask us for help. We want to work with any member who is sincere about re-establishing good credit.
- Find a temporary second or part-time job to increase your income.