Why was my personal loan declined?

Why was my personal loan declined? Personal loans can be declined for myriad reasons. The most common ones I see are:

If your personal loan has been declined and you want a second opinion, please contact our Personal Loan Broker.

Insufficient income

The most common cause of a personal loan being declined in my experience is a lack of income. Whilst the online calculator may say you have enough income, or your own calculations may say so, each lender calculates affordability (serviceability) differently.

Lenders can calculate income & expenses very differently, which can work against you. You can also use this information to find a lender that will approve your loan.

We can help you figure out which lender will give you the most generous affordability calculations in your circumstances. Whilst not always, this can give you approval options where you've been declined elsewhere.

Poor Credit Score.

Poor credit scores are relatively common, and will often result in a declined personal loan application. Different lenders have different cut-offs and expectations for your credit file. You should always use your Equifax Score as most lenders will use this exclusively.

Reasons your credit history may be insufficient:

We can usually assist clients in finding a lender to approve their loan in the following circumstances:

• Credit score must be above 400 in all cases. For loans over $15,000, we'll need a credit score over about 550.
• We can accept one small default. It must be paid over 2 years ago and under $300.
• We need any missed payments to be rectified and over 1 month old.
• Previous bankruptcies aren't an issue if they're not on the credit file, and disclosed to us upfront.

Poor Account Conduct.

In many cases, the lender will want to see 90 days' bank statement on your main bank account and/or any existing loans.

Some lenders will accept different amounts of 'poor conduct', and some lenders won't need to see bank statements. There may be options depending on the reason for the decline.

Insufficient time in your job.

Each lender has a minimum time-in-job requirement. The following are acceptable to our lenders (but perhaps not to the lender you applied with):

What can I do once my personal loan has been declined?

Talking to us is the easiest way. We can't help in all situations, but we can give you a good shot. We can at least tell you the reason for the decline. We can generally assist if:

• Credit score over 550. 400-550 accepted in some instances.
• No unpaid defaults or paid defaults over $300.
• Sufficient income to cover current expenses + the new loan.