Why do personal loans get rejected?
Back in 2008, we all turned around and blamed the banks for lending money they knew couldn’t be paid back. Since then the big banks are now taking as few risks as possible – if they have any suspicion whatsoever that you mightn’t be able to pay them back, they’ll reject first and ask questions later.
The banks will take into account a number of factors when you’re applying for a loan – the purpose of your desired loan, your income, your monthly rent, your employment status and even the kind of job you have. Here are the main reasons the bank will reject your application for a loan:
- You’re not earning enough
- They’re not comfortable with the purpose of your loan
- Your job is uncertain, or you’re still on your probation period
- You’re in too much debt / have too many loans
- Your credit scores are bad
If your loan application has been rejected, the loan company should tell you why you were rejected – the reply they give you doesn’t have to go into specifics, but it’s useful to know the main reasons. Sometimes your loan application can be rejected because your credit file contains details which are completely wrong. If you’ve been rejected because of your credit score, ask the loan company which credit reference agency they use – then go to the credit reference agency directly to have a look at your file to see if there are any details which need to be corrected.
What are my options if my bank loan application is rejected?
If the bank gives you a giant, red no, you’re not alone. Hundreds of people get rejected by the banks every week and they aren’t going to let up anytime soon. With your personal loan rejected, another form of credit to consider is credit cards – they usually offer a relatively low APR, so this is definitely the next logical option to look at.
Depending on what you need the money for, a credit card might not be the best option – sometimes credit card providers limit the amount that you can take out in cash, meaning these might not always be the best alternative – this all depends on what you need the cash for.
How a 118 118 Money loan can help
At 118 118 Money, you’re more than just a credit profile. Unlike the banks, we don’t see you as just a number – if your credit score is less-than-perfect, it doesn’t mean you won’t be accepted. We look beyond just your credit score – our application is all about working out whether we’re offering you an affordable loan that you’ll be able to pay back. Our applications are all done online, which speeds things up and means you won’t need to suit-up and head to the bank.
Our application process is much quicker than a bank loan application – we’ll try and give you an answer to your application within an hour and (if your application is successful), the money will be in your account within 24 hours. You can pick the repayment term (you can pick 12, 18, 24, 30 or 36 months to pay your loan back in), plus, our super-awesome terms mean that if you’re in a great financial position, we won’t charge for early repayments.
Loans from 118 118 Money are built around you – you’re in charge, and you can log in to manage your account online at any time. If you’re looking for a loan, take a look at our loan calculator and see how much you can save today.