As a new loan officer, you might be surprised at the number of people whom you have to turn down due to bad credit. Unfortunately, a history of bad debt is a major concern that you have to face, especially since you’ve been entrusted with securing your employer’s underwriting resources. Although it’s difficult to make that decision to deny a loan, here are some ways you can assist clients with bad credit so that the next time they apply, they’ll be in a better position to get a loan.

1. Assure Them That Change is Possible

Persons with bad credit often have a fatalistic attitude when it comes to their credit report. They may feel so overwhelmed that they can’t see how their credit score could possibly get better. This can snowball into worsening credit and make matters even more difficult to turn around.

The first thing you can do to help your clients with bad credit is to assure them that a higher credit score is definitely possible in the foreseeable future. With conscientious effort and persistence, many people see their credit scores rise slightly in as little as 30 days. This is due to the fact that credit card companies report monthly to credit agencies like Experian and Equifax. Over the course of just one and a half years, a credit score can recover completely with good credit restoration practices. That’s not long to wait for a loan that might make a forever dream home within reach.

2. Recommend Closer Credit Monitoring

It’s easy to let bad credit run wild if no one is watching the ball. Explain to your clients with bad credit that things might not have gotten so bad if they had been paying closer attention to their credit report.

Credit monitoring services are an essential component of responsible financial management. Using a service like this, your clients with bad credit will not only be able to keep a close watch on their credit. They will also feel more empowered to take control of their credit. This will result in stronger credit and a better client for you in the future.

3. Explain How Credit Scores Work

Surprisingly, many people with bad credit have no idea how their credit scores are calculated. They may also lack the knowledge about the subtle differences among various credit scores, like FICO and Vantage. Given this, it’s little wonder why so many loan applicants are unprepared for the loan process, and why they ultimately must get turned down.

As a loan officer, you can provide a valuable service to your clients with bad credit by explaining how credit scores work. If you don’t feel comfortable offering this level of detailed service, you can always direct them to a helpful site where they can educate themselves about all the nuances of credit and get the tools to build their credit into something they can be proud of.

Being on the front lines of the loan process can be rewarding, but it can also be frustrating when you have to deny good people the funds they need to improve their lives. With these three tips, you can help clients develop strong financial acumen and great credit for the future.