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I recently applied for a personal loan. I made it to the final stage of approval after uploading my paystubs, payoff notices, bank statements, etc. I ultimately received a decline notice stating that 'borrower cannot verify application details' something along those lines.

I have written a letter to the underwriters for further details on what the issue was, as when I called I was told that I had to personally write in to get clarification as to why I was turned down.

I was able to verify my income with my paystubs, so I am unsure what could not be verified.

My question is, assuming that I am able to verify that all the information I provided on my application was correct, in general, can decisions like being turned down for a loan be reversed, or would I have to reapply once they clarify what could not be verified? Thanks

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My question is, assuming that I am able to verify that all the information I provided on my application was correct, in general, can decisions like being turned down for a loan be reversed, or would I have to reapply once they clarify what could not be verified?

That is a question only the lender can answer. If their issue is fixable, then I have had lenders approve the loan without having to re-apply.

In one case they were overly aggressive in their underwriting rules and rejected the auto loan application because the amount I was asking for was $10 above the maximum they though I could afford. I was able to show they didn't have to be that aggressive.

In another case the bank rejected a credit card application for my son, and it was because of how he answered a question on the application, he misunderstood the question, and when it was addressed they approved him for the card.

In both cases once the issue was addressed the loan/credit card was approved that same day.

But if enough time goes by, they might ask you to re-apply so they can re-run the credit check. Of course their policy could be to always ask the customer to re-apply.

So when you get their response, you should contact them again to determine what the next step is.

  • I was wondering if there is any further impact on the credit in such cases. – perennial_noob May 8 at 21:10

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