Steps to Follow When Your Loan Application is Refused

By Angela Monroe - July 18, 2018

Lenders consider several factors before approving a loan application. Most lenders have strict eligibility criteria. If an applicant doesn’t fulfil the eligibility criteria, they will get a declined loan application.

If you need a loan, but you have been refused everywhere, it is probably because you don’t satisfy the eligibility criteria for a loan. This can be a difficult situation because you won’t be able to access new credit urgently if you need to.

However, you don’t need to panic. There are a number of things you can do to improve your chances of getting future loan applications approved. You should also consider seeking the advice of professional brokers to help you understand how to improve your chances of loan approval.

Before we take a look at what steps you should take to improve your chances of loan approval, let’s consider why you may have had your loan application denied in the first place.

Why your loan application may have been rejected

If you have had your loan application denied everywhere, it could be because of one or more of the following reasons:

  • Low income or no income

Lenders may reject your loan application if you don’t have a stable income or if your income is too low. If lenders feel that you don’t have sufficient repayment capacity, they will deny your loan application.

  • Too many existing loans

You might get your loan application denied if you already have many existing loans. If your income barely covers your existing repayments, lenders will be wary, and they may reject your application.

  • No stable employment

Lenders may also deny you a loan if you don’t have any stable employment. This also holds true if you have hopped jobs too frequently in the past.

  • Too many loan applications

Your current loan application may also be rejected if you have applied for several loans in the past. Making too many loan applications contributes to a bad credit score, which makes it even more difficult for you to obtain a new loan.

  • Payment defaults

If you have a stable income, but you have defaulted on payments in the past, your loan application may be rejected. Defaulting on payments, late payments of bills and skipping EMIs all contribute to a bad credit score.

Apart from these reasons, lenders may also reject your loan application if there is a lack of information in your application. Lenders closely verify all information that you provide in your application. If any information is missing or is incorrect, lenders will reject your application. Lenders will also reject your application if you provide false documentation.

Steps to take to ensure that your loan application doesn’t get refused

If you need a loan but have been refused everywhere, then there are certain steps you need to take. These steps will help you ensure that your subsequent loan applications don’t get denied.

  • Check loan eligibility criteria before applying

Before you apply for a loan, always ensure to check loan eligibility criteria. If you are not eligible for a loan, don’t apply for it or you will unnecessarily face rejection, and your credit score will also take a hit.

  • Maintain a history of investments and savings

Make sure to maintain a history of investments and savings before you apply for a loan. A history of savings and investments will show lenders that you are financially responsible. This will increase your chances of obtaining a loan.

  • Manage your finances responsibly

If your loan application was rejected because of defaults or a bad credit score, you should manage your finances more responsibly before applying for another loan. Make sure not to default on payments and ensure to pay all bills on time. Try and improve your credit score before applying for a loan.

  • Don’t miss verification calls

When you do apply for a new loan, make sure not to miss verification calls made by lenders. Missing out on verification calls will unnecessarily lead to your loan application getting rejected.

To really make sure that your loan application doesn’t get rejected, you should apply for a loan when you have a stable income, and your credit score isn’t too bad.

If you have had your loan application denied everywhere, you should consider taking the help of the professional finance brokers at Loans for People with Bad Credit. Our professional brokers have access to several speciality lenders who offer bad credit loans. We’ll connect you to the right lender, and we’ll even negotiate with lenders to approve your loan application.

Apply for a bad credit loan today!

Even if you have had your loan application denied in the past, you can still obtain a new loan. Before you apply for a new loan, improve your credit score and maintain a good financial record. Always check the eligibility criteria for a loan and always provide proper documentation with your application.

If you are in need of an urgent loan with bad credit, get in touch with our bad credit specialists at Loans for People with Bad Credit. We’ve helped many people get loans after they have been refused everywhere else, and we can do the same for you.

Call us on 1300 769 384 or contact us talk to one of our bad credit specialists today!

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.



November 19, 2018

I desperately need a loan ASAP to help with rent and moving expense. I am recently divorced with 2 minor children and I am trying to start over. I have been rejected by several companies due to my poor credit and creditworthiness and I understand that the reasons for being in this situation in my fault regardless of circumstances. However, I have been for the last few month an still currently working on repairing my credit but my children and I are in need of these funds to assist in moving into a place this week ASAP.

Grant McPherson

December 13, 2018

Can’t get a loan anywhere have really bad credit be amazed if you can help


January 29, 2019

I need a car loan but keep getting rejected

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