Question

If denied a loan, which of the following changes to your application process will not increase your chances of approval when you re-apply?

a.

Apply for a larger loan amount.


b.

Increase your gross monthly income.


c.

Have a cosigner apply for the loan with you.


d.

Eliminate some of your debt before you re-apply.

Answer 1

Answer: (a) Apply for a larger loan amount.

Step-by-step explanation: If our loan application is denied, then increasing our gross monthly salary will increase chances of loan approval next time. So, option (b) is incorrect.

Having a cosigner for the loan with us will also increase our chances of loan approval to some extent and so option (c) will also not work.

And, if we eliminate some of the debts before re-applying, then also there are better chances of approval. Thus, option (d) is incorrect.

The only correct option is (a), because increasing the loan amount will not improve our chances but reduce it anyway.

So, the answer is (a).