How can you get a loan when you are rejected without a reason?    

How can you get a loan when you are rejected without a reason?    

Getting rejection without clarity affects other goals and lifestyle. What if you must pay an urgent bill but cannot because of rejection? It only makes one furious, frustrated and one may panic too. It could be hard to think of anything unless you pay that important bill.  

Moreover, no clarity on the reason for loan rejection complicates things further. You cannot avoid that bill and may think, “I need money now, but can’t get a loan in the UK?” If you often think about that, the blog may help. It lists the possibilities and the steps to take in that case.  

What could be the reasons for personal loan rejections?  

Knowing the personal loan rejection reasons may help you avoid repeating the mistakes. Here are some common aspects where a loan provider may reject an application: 

• Thin credit profile 

• A good number of pending debts in your credit report 

• Spelling and others in the application 

• You applied for a higher amount than what you qualify for 

• Delinquencies in income proof/inability to authenticate the earning source 

• Incomplete information 

For example, you explore the best 2000 pound loans to pay the utility bill urgently. However, you forgot to check the initials you mentioned on the form in a hurry. Instead of James Walker, you wrote James Waker.” This small mistake led to loan rejection. Here, the creditor may also ask you to reapply with the correct information. Don’t apply immediately after rejection. Instead, seek help from your roommate for minor cash meanwhile.  

6 ways to get a loan after a loan rejection 

As you can see that there are several reasons which may lead to loan rejection. Most of the time, you can fix the aspects individually. It just requires you to understand the reasons by contacting the respective loan provider. Here are some steps to follow to get a loan after the rejection: 

Know the reason for the declination 

Most loan providers may not be upfront or clear about the reason for loan rejection. They may instead give you a vague idea about the aspects which may lead to one. It is thus always better to rely on a decision by a real person than a bot. It is because you have more chances to know the reason with the former.  

You must also know what loan providers check while providing a loan. It may help you guess the reason and prepare accordingly. Here are some aspects that loan companies check: 

Check and report credit file errors 

One must always check the credit report before applying for a loan.  Identify the delinquencies and report one to the credit bureaus immediately. Check for duplicate entries, unrecognisable debts and transactions and report these as well.  Reporting errors, paying some debts, and consolidating dues improve your credit score immediately. 

TIP: Ask the creditor which credit agency they refer to for providing loans. Contact them and get an updated credit report from them. It will help you know and repair the potential issues.  

You can also add a Notice of Correction in case of incorrect information mentioned on the credit report. It should be a 200-word notice to the authority demanding an explanation. 

Identify and improve small aspects 

Apart from improving the credit score, highlight the minor aspects which may lead to disapproval. It could be high expenses, unnecessary use of credit cards, or improving to income ratio. Here are other aspects to consider:  

• Clear/settle small arrears, reduce credit utilisation on credit cards 

•  Cancel any unused credit cards if they consume your credit limit 

• Make sure your income is correctly mentioned  and is stable to get a loan 

• Consider and wait until the experts consider your credit report and provide an updated one.  

• Avoid any joint account or financial contact with a person with bad credit. 

Determine the right time to apply 

Individuals must wait until they receive a final version of the credit report from the credit agency. Next, identify the loan providers offering the opportunity to pre-qualify. It helps you understand the amount you can afford without affecting your credit score. Also, choose and identify only loan products that match your needs and affordability.  

Never borrow beyond what you can repay on the loan. It only obstructs your finances and credit score.  Check the aspects in your credit report. If you have heavy debts like credit cards, payday loans, pay these first. It will help you optimise your credit report and apply correctly. 

However, if you need cash urgently, check doorstep loans online for your needs. It does not require much hassle. You can get one without a bank account, credit score or even collateral. It instead helps you get cash at home with just a valid income proof. You can count on it for any small cash need.  

Pay bills in your name 

Most students or self-employed individuals who have shifted to the UK recently depend on guardians for small payments. It is because they lack a valid bank account and ID as of now. Well, it is better to get one as soon as possible. Paying bills like rent, utility bills, deposit, etc., in your name creates credibility. It helps the loan company get a better idea of your finances and affordability. They may approve the loan if your credit report reveals consistent payments for 6 months or over. It also helps you build credit history, which may prove beneficial in the future. You may get a guaranteed loan in the UK with a strong affordability status.  Yes, getting a guaranteed approval is only possible if you can repay the dues timely. Otherwise, you may get rejected for a loan.     

Get an expert’s advice    

If you still struggle to figure it out, consult financial experts. It may help you understand the basics of finances. You get to know the aspects which may lead to loan disapproval in detail. Hence, you can prepare for a loan application better.  

Bottom line 

These are some of the best ways to get a loan after facing rejection. Disapproval is not the end of life. Instead, you can always bounce back with a stronger credit history, income and finances. Determine the cause of loan rejection and work on it. Always pay bills in your name and stay away from unnecessary expenses.  

paul smith

Paul Smith is an established financial author and writer with over nine years of experience, who specialises in personal finance, loans, credit management, and investment strategies for people throughout the UK. Paul’s expertise can be seen on leading loan websites such as Bargainloans. Through his blogs and articles Paul has helped thousands of borrowers make wiser financial decisions while his passion for study encourages people to take control of their finances with greater confidence and clarity