Would-be borrowers can find themselves on a lender’s rejection pile for a variety of reasons. Most commonly, it’s because you don’t meet all the lender’s eligibility requirements – like residency, employment status, minimum income, etc. – or because your credit profile isn’t what the lender’s looking for. Either way, it’s pretty frustrating stuff.
The good news is there are plenty of lenders out there, targeting different sections of the market. The goal is to identify which of those lenders can help you, and then which of those can provide the cheapest loan.
If you’ve been rejected for a loan, try to find out what went wrong. Many lenders will automatically provide you with the reason you were rejected, but if that didn’t happen, you could contact the lender to request an explanation.
Lenders have basic eligibility criteria which they typically publish for all to see. This covers things like being a UK resident, being within a specific age range or earning over a specific threshold. They might also specify a list of unacceptable loan purposes. If you didn’t meet the lender’s basic eligibility criteria, they should be upfront about this.
However, lenders also check your credit record, and frustratingly, they don’t publish exactly what it is they’re looking for. Naturally people who can demonstrate a positive history of responsible use of credit are more attractive to loan companies, but at the same time, some lenders are specifically seeking to help those with lower credit scores. If it was the credit check that held you back, then it’s simply a question of finding the lenders that can lend to credit profiles like yours.
Either way, it’s a smart idea to get to know your credit file. That way you’re seeing the same thing the lenders are.
Once you’ve determined the reason you couldn’t get a loan, whether it’s because of your credit history, current financial position, or some other reason, you can work to fix the issue before applying again or you can look elsewhere.
*Improvements to your credit score are not guaranteed. Missing payments to Loqbox or other credit accounts may harm your score.
Most lenders will let you apply for a loan provided it’s for a worthwhile purpose. This includes paying for a wedding, a car, a holiday, home improvements or to consolidate your debt.
While there is no “best” reason to put on your loan application, there are a number of things that you’ll be unable to get a loan for. This includes things like borrowing money for gambling, investing and any illegal activities. This also includes getting a loan that you then use as a down payment or deposit on a larger loan.
Ultimately, the reason you give on your application should be truthful. If you lie on a loan application, you’re likely to risk damaging your profile. Even if the lender believes you, if they find out at a later date, the loan could be called in. In a worst-case scenario, you could end up with a Cifas marker against your name (simply meaning you’ve been flagged in the fraud database as a potential offender).
To make comparing even easier we came up with the Finder Score. Speed, features and flexibility across 60+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the lender – simple.
Read the full methodologyTo make comparing even easier we came up with the Finder Score. Speed, features and flexibility across 60+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the lender – simple.
Read the full methodologyTo make comparing even easier we came up with the Finder Score. Speed, features and flexibility across 60+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the lender – simple.
Read the full methodologyTo make comparing even easier we came up with the Finder Score. Speed, features and flexibility across 60+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the lender – simple.
Read the full methodologyTo make comparing even easier we came up with the Finder Score. Speed, features and flexibility across 60+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the lender – simple.
Read the full methodologyPlease note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
These are things you should avoid when applying for a personal loan:
There’s no way to completely guarantee that your personal loan application will be approved. Even if you meet all the eligibility criteria listed by a lender, the lender can still reject your application at its discretion. What you can do is avoid common mistakes that lead to personal loan application rejection and follow the tips we’ve discussed to improve your chances of approval.
The results of the Finder Customer Satisfaction Awards 2025 are in, and the winner of the personal loans category has been decided.
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