{"id":97011,"date":"2018-03-23T22:28:02","date_gmt":"2018-03-23T22:28:02","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=97011"},"modified":"2025-06-30T14:32:04","modified_gmt":"2025-06-30T13:32:04","slug":"avoid-personal-loan-rejection","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/personal-loans\/avoid-personal-loan-rejection","title":{"rendered":"Why can’t I get a loan?"},"content":{"rendered":"

Would-be borrowers can find themselves on a lender\u2019s rejection pile for a variety of reasons. Most commonly, it\u2019s because you don\u2019t meet all the lender\u2019s eligibility requirements \u2013 like residency, employment status, minimum income, etc. \u2013 or because your credit profile isn\u2019t what the lender\u2019s looking for. Either way, it\u2019s pretty frustrating stuff.<\/p>

The good news is there are plenty of lenders out there, targeting different sections of the market. The goal is to identify which of those lenders can help you, and then which of those can provide the cheapest loan.<\/p>

Understanding why your application has been rejected<\/h3>

If you\u2019ve been rejected for a loan, try to find out what went wrong. Many lenders will automatically provide you with the reason you were rejected, but if that didn\u2019t happen, you could contact the lender to request an explanation. <\/p>

Lenders have basic eligibility criteria which they typically publish for all to see. This covers things like being a UK resident, being within a specific age range or earning over a specific threshold. They might also specify a list of unacceptable loan purposes. If you didn\u2019t meet the lender\u2019s basic eligibility criteria, they should be upfront about this.<\/p>

However, lenders also check your credit record, and frustratingly, they don\u2019t publish exactly what it is they\u2019re looking for. Naturally people who can demonstrate a positive history of responsible use of credit are more attractive to loan companies, but at the same time, some lenders are specifically seeking to help those with lower credit scores. If it was the credit check that held you back, then it\u2019s simply a question of finding the lenders that can<\/em> lend to credit profiles like yours.<\/p>

Either way, it\u2019s a smart idea to get to know your credit file<\/a>. That way you\u2019re seeing the same thing the lenders are.<\/p>

Once you\u2019ve determined the reason you couldn\u2019t get a loan, whether it\u2019s because of your credit history, current financial position, or some other reason, you can work to fix the issue before applying again or you can look elsewhere. <\/p>

5 tips to improve your chances of getting approved<\/h4>
  1. Don\u2019t apply without checking if you\u2019re likely to get approved.<\/strong> If you apply for a personal loan and are rejected, it\u2019ll show up on your credit history. Multiple rejections may make it harder for you to get approved in future.<\/li>
  2. Check multiple lenders in one go.<\/strong> Blindly applying for loans directly with the lender can be time-consuming and counter-productive. Knowing where you stand with a range of lenders gives you a better idea of whether you\u2019ll be approved. Click the green \u201cGet quotes\u201d button at the top of the page to compare which loans you could get today.<\/li>
  3. Get familiar with your credit history and what you can do to improve it.<\/strong> Many people don\u2019t know their current credit score or even what\u2019s listed on their credit history<\/a>. There are a number of things you can do to improve your credit rating, from getting yourself on the electoral roll to paying off existing loans and closing credit accounts you don\u2019t use. On rare occasions, there can be mistakes in credit files which might act against you (the good news is that it\u2019s relatively easy to get these fixed).<\/li>
  4. Double-check your details before you hit apply.<\/strong> It may seem obvious but even simple mistakes on your application, such as putting in the wrong date of birth or address, can impact your chances of approval.<\/li>
  5. Make the best case you can for yourself.<\/strong> Understanding your own financial situation and borrowing power is key to getting approved for a loan. While you may think you\u2019ll be more likely to be approved if you apply to pay off your loan within a year, this may be seen as unrealistic by the lender and increase your chances of rejection. Always apply for a sensible amount, over a sensible term, for a legitimate purpose.<\/li><\/ol>