Why Can’t I Get a Loan?
Lack of a Steady Income Stream
If your current income and expenditure indicate that you will be unable to afford the loan, then don’t be surprised if you are refused a loan. However, you can avoid this by drawing up a budget in advance, which should help you assess just how much you will be able to afford in monthly repayments.
Bad Credit Score
Having a low credit score can often be a red flag to many potential credit lenders because if your score is under 670+, it indicates that you are too big of a risk to consider lending. However, the good news is that there are bad credit loans that you can still apply for, but at the cost of higher interest rates and fees.
Non-existent Credit History
Having a non-existent credit history happens because you either don’t have a credit card or have never borrowed it before. And if this is the reason why you need a loan been refused everywhere in the UK, then you need to either apply for a credit card or start paying your monthly bills to help boost your credit score.
Failing to clear your past-due payments can often explain why I need a loan but keep getting declined. Having lingering debts or unpaid bills can often be alarming for potential lenders, which is why you should take some time to repay some of your existing debts before submitting your application.
Credit Report Discrepancies
Credit reference agencies can sometimes make a mistake on your report, which is why you should make it a habit to review your credit report. If you spot an error, you can then contact them and ask them to correct it, providing you have sufficient evidence to prove it isn’t accurate. The matter will then be labelled as ‘disputed’ while they investigate it.
Excessive Loan Applications
Taking out multiple credit applications can often discourage lenders from considering your loan because it often reflects on your credit report, which shows desperation. It is for this reason that if you are ever refused a loan, you should avoid trying to apply for another immediately after. And if you must apply for one, then look for lenders that will only carry out soft credit searches, as these won’t register a search marker on your report.
What Can I Do if I've Been Refused a Loan?
Review Other Alternative Options
Don’t make the mistake of rushing to submit another loan application from another credit lender or proper finance ltd, because multiple applications on your credit score will only end up damaging your credit score even further. Instead, you should consider other options like borrowing from friends and family or selling valuable assets.
Raise Your Credit Rating
The common question of ‘why can't I get credit’ often comes down to having a bad credit score. However, the good news is that you can improve your credit rating to improve your chances of securing a line of credit by making it a habit to pay your credit bills on time, as well as consistently paying off more than the minimum amount every month.
Clear All Outstanding Debts
Outstanding debt is often one of the main reasons why most people can't get a loan anywhere, so it goes without saying that you need to make sure that you catch up on past-due accounts before submitting a new application. And while this can often be difficult, it is still the best way to improve your chances of not being refused a loan next time.
Apply for a Bad Credit Loan
In the worst case, you can always apply for a bad credit loan using our online broker service. For instance, if you were refused car finance everywhere, then we will be able to connect you to a suitable lender, but since most bad credit loans come with high-interest rates, as well as late payment fees and penalties, you need to make sure that you review your loan options carefully before applying.
How Can I Increase My Chances of Getting a Loan Approved?
1. Conduct a Credit Report Evaluation
If you don’t want to be faced with a refused payday loan, it is important that you review your credit report before submitting your application. This means making sure that all the information on it is correct, and if you do end up finding an error, then you should quickly contact the relevant Credit Reference Agency to get it amended.
2. Confirm that You Fulfil the Eligibility Requirements
Every credit lender will usually have its own eligibility criteria for approving loans. Some of them tend to be more invested in approving borrowers with good credit scores, while others are more than willing to approve applications as long as you can reasonably afford to repay what they owe. It is important that you pay attention to their requirements, otherwise, you will get refused loans everywhere in the UK.
3. Raise Your Credit Rating
If you have a non-existent or bad credit score, then don’t focus too much on ‘why can't I get a loan, but rather on how to raise your score, in order to improve your chances of securing a line of credit in the near future. And this often starts by catching up on past-due accounts, making on-time payments, disputing credit report errors, as well as limiting how often you apply for new accounts.
What Are the Criteria for a Refused Credit Loan?
If your everyday loans declined, then it will often be because you failed to meet the lending criteria of the financier in question. And while, the eligibility criteria for refused credit loans can often vary, since they mostly depend on the lender in question, in most cases, you can qualify for a refused credit loan as long as you are;
- employed on a full or part-time basis
- a UK resident
- over 18 years old
- a homeowner or car owner (for secure loans)
- able to afford your monthly loan repayments
Credit lenders will also take a look at your credit history to assess your creditworthiness, in terms of how well or poorly you have carried out your credit payments in the past by conducting a soft credit check on your report.
They will also examine your finances to determine your ability to repay your loan, or alternatively to assess how much money they are willing to lend you with a revised offer.
It is for this reason that if you need a loan been refused everywhere in the UK, then you must first ensure that you can prove you have a steady income stream before submitting an application or you risk compromising your chances of securing the line of credit that you need.
How to Apply for a Refused Credit Loan With PaydayLoansUK?
1. Apply Online
You can start your loan application by filling out the online form on PaydayLoansUK, which should only take a few minutes to complete and will require you to fill in your personal information, financial details, as well as contact information.
2. Review Your Loan Options
Once submitted, we will connect you with one of the lenders in our network, who will then use your application to review your creditworthiness. You will then be able to compare various loan options available to see which lenders are offering the most favourable terms to you.
3. Assess Your Quote
Our expert panel of FCA authorised lenders will then use your application to verify your employment status, review your finances and conduct a soft credit check to assess your credit history.
And if you also fulfil their eligibility requirements, then you can expect to receive a quote in as fast as 5 minutes that will describe in detail the approved loan amount, interest rates, as well as the other terms of the agreement.
4. Await Your Funds
Once you agree to the terms of the loan, the lender will then quickly process the amount that you can expect to be credited in as little as 24 hours from when you e-sign the agreement, with no hidden fees to worry about.
Want to Get a Loan?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
What Other Borrowing Options Do I Have if I’ve Been Declined for a Loan?
If your everyday loans declined, then do not panic. Many people that can’t get a loan anywhere tend to make the mistake of thinking that reapplying for a new loan somewhere else is the right strategy, but the problem with that is most lenders will usually conduct hard credit checks to assess your creditworthiness each time you submit an application.
And whether you are refused a loan or not, those checks still show up on your credit file, which will impact your credit rating negatively. This means that the more applications you submit in a short space of time, the more it makes lenders think that you’re desperate for cash, which can even end up affecting the interest rates that you might be charged as well.
It is for this reason that you should first consider borrowing from friends and family, credit unions, or even remortgaging. However, if you’ve also exhausted these options, then you can use a seasoned broker like ourselves, as all you need to do is simply fill in a short online application form that will take just a few minutes to fill out.
We will then connect you to one of the lenders in our network that will get back to you with a free no obligation quote in just a few hours, without harming your credit score in the process.