7 tips to prevent personal loan rejection | finder.com

7 tips to avoid getting rejected for a personal loan

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

What you can do to increase your chances of being approved for a personal loan.

Personal loan rejection can happen to anybody for any reason. But that doesn’t mean there aren’t ways to improve your odds of getting approved. By making sure you qualify and checking over your application, you may be able to avoid rejection and get the money you need.

Credible Personal Loans

Our top pick: Credible

Quickly get personal loan offers from top online lenders.

  • Minimum Loan Amount: $1,000
  • Maximum Loan Amount: $50,000
  • Loan Terms: 2–5 years
  • One simple form
  • Must have good to excellent credit

    7 ways to increase your chances of approval

    The best defense against personal loan rejection is to know what it takes to be approved by a lender.

    1. Check the credit requirement. Every lender has a minimum credit score you need to meet in order to be approved. If you’re unsure, it’s best to ask the lender before you apply.
    2. Check the minimum income requirement. In addition, many lenders have a minimum income requirement. If it isn’t listed on the lender’s website, you may be able to find it on one of our review pages.
    3. Ensure your loan purpose is allowed. Not every lender allows your loan to be used for just anything. You may not be able to use your loan funds for secondary education expenses or your business. Check with your lender to ensure you can apply your funds to whatever you need.
    4. Meet the employment requirement. Sometimes freelance work or benefits won’t cut it. A lender may require you to have been employed by a company for a certain number or years, so make sure your work counts before you apply.
    5. Have sufficient collateral. If you’re applying for a secured loan, make sure the collateral you’re putting up is enough to qualify for the amount you want to borrow.
    6. Limit your outstanding debt. Lenders will be wary if you already have a large amount of debt. If your debt-to-income ratio is too high, you may want to consider paying off some of your outstanding balances before you apply for a new loan.
    7. Verify your details. Double-check your application before you submit. Missing even small details could result in a rejection. Take the time to ensure your personal information is correct when you apply.

    Compare personal loans

    Rates last updated September 21st, 2018

    Reveal your potential loan offers and rates

    Answer two quick questions to filter the loan offers and get the best one for you.

    Select your credit score range

    I don't know my credit score

    Finally, select where you live.

    To get your credit score:

    Experian logo

    Experian is a leading provider of personal and business credit reporting. Find out your FICO score now for less than the cost of a cup of coffee.

    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Min. Credit Score Max. Loan Amount APR
    Even Financial Personal Loans
    Get connected to competitive loan offers instantly from top online consumer lenders.
    580
    $100,000
    4.99%–35.99% (fixed)
    SoFi Personal Loan Fixed Rate (with Autopay)
    No fees. Multiple member perks such as community events and career coaching.
    680
    $100,000
    6.990% – 14.865% (fixed)
    Credible Personal Loans
    Get personalized rates in minutes and then choose a loan offer from several top online lenders.
    Good to excellent credit
    $50,000
    4.99%–36% (fixed)
    NetCredit Personal Loan
    Check eligibility in minutes and get a personalized quote without affecting your credit score.
    550
    $10,000
    34%–155% (Varies by state) (fixed)
    Best Egg Personal Loans
    A prime lender with multiple repayment methods.
    640 FICO®
    $35,000
    5.99%–29.99% (fixed)
    LendingClub Personal Loan
    A peer-to-peer lender offering fair rates based on your credit score.
    660
    $40,000
    6.16%–35.89% (fixed)
    Monevo Personal Loans
    Quickly compare multiple online lenders with competitive rates depending on your credit score.
    580
    $100,000
    3.09%–35.99% (fixed)
    FreedomPlus Personal Loans
    Consolidate debt and more with these low-interest loans. Cosigners welcome.
    640
    $35,000
    4.99%–29.99% (fixed)
    OppLoans Installment Loans
    Installment loans with competitive rates from a top-rated direct lender.
    Bad credit accepted
    $5,000
    99%–199% (fixed)

    Compare up to 4 providers

    Factors to consider when applying for a personal loan

    • Limit your number of applications. When you apply for a loan, the application is counted as an inquiry on your credit report. Too many inquiries can negatively affect your credit score.
    • Keep your credit report clean. Pay your debts on time and avoid defaulting on your loans. The more you show you’re a reliable borrow, the more likely you’ll be to get a loan.
    • Check your credit report. You should monitor your credit report to make sure everything is up to date and accurate.

    Top reasons lenders reject personal loans

    • Bad credit history. If you’ve made multiple late payments, defaulted on a loan or been in bankruptcy, a lender is unlikely to approve your loan application. Check your credit score to see what kind of problems are listed on your report.
    • Insufficient income. A lender won’t approve your application if you can’t afford the monthly payments that come with borrowing a loan.
    • Your loan purpose. Lenders are more likely to approve loans for debt consolidation or home improvement than vacation or secondary education. If your loan purpose doesn’t match with a lender’s expectations, you won’t be approved.
    • Missing information. Lenders will verify the details you put in your application. If you’ve entered something incorrectly, your lender will probably reject your request for funding.
    • Unstable employment. Lenders are very meticulous about the stability of your job. A number of lenders insist that you should have a stable job, otherwise they may reject your loan.
    • Too many loans. If you already have a loan or extra debt, you might be rejected. This is because your debt-to-income ratio will be high, indicating you may not be able to pay off your loan.

    Bottom line

    There’s no way to completely guarantee that your personal loan application will be approved. Even if you meet all the eligibility criteria listed by a lender, the lender can still reject your application at its discretion. However, you can avoid common mistakes that lead to personal loan application rejection and follow the tips we’ve discussed to improve your chances of approval. You can also compare your personal loan options to find more lenders you may be eligible for.

    Frequently asked questions

    Was this content helpful to you? No  Yes

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy and Cookies Policy and Terms of Use.

    4 Responses

    1. Default Gravatar
      lizaSeptember 14, 2018

      I am a 71 senior woman collecting social security (five years) …. 1256 monthly.
      Stable rental history no outstanding loans ……need 2500 for a car laptop and glasses …. able to pay back over 12 months …..who will lend to me …

      • finder Customer Care
        joelmarceloSeptember 15, 2018Staff

        Hi Liza,

        Thanks for leaving a question on finder.

        The table in THIS page can be a good starting point to find a loan for people who rely on a pension as their main source of income. You can click on the name of the lender to read a review, and you can click “Go to Site” to submit your application. If you have questions regarding your eligibility, you can contact the lender directly.

        To apply, you’ll need to provide personal information including your name and contact details, as well as financial information regarding your pension payments, assets, debts and open credit accounts.

        Cheers,
        Joel

    2. Default Gravatar
      StephanieJuly 20, 2017

      I can’t get a loan .It seems like no loan company will give me any thing.people help!

      • finder Customer Care
        AnndyJuly 20, 2017Staff

        Hi Stephanie,

        Thanks for getting in touch.

        You may want to check our personal loan finder here to search for loans for your particular borrowing needs.
        There are lenders who consider borrowers with bad credit rating, borrowers who are receiving benefits or those with no bank account.

        Kindly review the eligibility criteria and the terms and conditions of the loan before submitting your application.

        Cheers,
        Anndy

    US Personal Loans Offers

    Important Information*
    Even Financial Personal Loans

    Get connected to competitive loan offers instantly from top online consumer lenders.

    Prosper Personal Loans

    Borrow only what you need for debt consolidation, home improvements and more — with APRs based on overall creditworthiness.

    LendingClub Personal Loan

    A peer-to-peer lender offering fair rates based on your credit score.

    SoFi Personal Loan Fixed Rate (with Autopay)

    No fees. Multiple member perks such as community events and career coaching.

    Go to site