4 Reasons Why You Might Be Rejected for Online Loans

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Rejected
4 Reasons Why You Might Be Rejected for Online
Loans

• Have you been refused a loan? Not sure what or
  why you should do next?
• Getting turned down for a loan can be
  disappointing, especially when you do not
  understand why you were refused. But not
  to worry, lenders all vary, and some
  specialise in lending to borrowers who have had
  credit rating issues.
• If you have been refused online loans,
  some lenders will usually let you know the
  reason for the refusal within a week.
  However, it may vary from lender to lender.
  You are entitled to ask the lender why they
  rejected you for the loan, but they need not have
  to give you a detailed explanation. But if you
  are not sure, chances are it will be one of
  these four common reasons.
• Poor Credit Score
• Lenders tend to base their decisions on several
  factors, but the most important factor in
  getting a loan approved is your credit
  rating. Most borrowers are not aware of
  their credit scores. A bad credit rating is
  a red flag to lenders and gives them a
  general impression of how much of a risk you
  pose. Even if you get approved for online loans

with bad credit, you might get higher
rates of interest. Some websites, such as
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• Experian, TransUnion, Equifax, etc., allow
  you to check your credit score for free for
  a limited period. It is better to check your
  credit rating when applying for a loan.
• Not Enough Employment and Income
• Employment with a stable or regular income
  is a common requirement for lenders. It
  plays a crucial role in helping to approve your
  loan with low or affordable interest rates from
  the lenders and assures them that you can
  repay the amount. Your online loan
  applications could get rejected if you do
  not have a stable or regular income. For
  instance, if you are applying to borrow a large
  amount and your incomings are low, you will
  have a low chance of getting approval. To avoid
  this, ensure that you can afford the loan
  repayments before applying.
• Not Meeting the Basic Requirements
• Every lender sets their eligibility
  requirements, but most check for a few basic
  criteria, such as
• The minimum age requirement is over 18.
• a UK citizen
• must be employed to afford the loan.
• must not be bankrupt.
• Made Too Many Loan Applications

many and which ones you have made.
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Always try to minimise the number of
applications, as lenders may see this as a red
flag and think you are in financial
trouble. Once you decline by one lender,
never keep applying for others. Instead,
look out for lenders who perform soft
searches as it does not affect your credit
rating, and the check cannot be visible to other
lenders. Can a loan rejection affect my credit
rating? Being turned down for a loan does
not affect your credit score. But the act of
applying will leave a mark on your credit
report. However, when you apply for a
loan, the resulting hard search pulls down your
credit rating a little. If your loan
application gets declined, it is important to
identify the reasons why. If you understand
what happened, you can take steps to
improve your chances for the next time.