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If you’re relying on your loan application going through and it is rejected it can be a shock, and emotionally upsetting. This is particularly the case if you have already figured out what the money is for and you need it. Just remain calm and rational and you’ll figure out what to do next.

Don’t worry – you can definitely be approved next time you apply but you need to do things differently before you apply again. You need to take a couple of steps first before you decide to apply again so that you don’t hurt your credit any further and to make sure you increase your chances of being approved next time.

If you think of the positives in this situation it will give you a chance to reassess your financial habits and behaviors and help improve your chances of being approved.


Top Reasons Your Loan Application Was Rejected

Your Credit Score Was Not High Enough

Your credit score is a good indicator of whether you’ll be approved or not. Most issuers let you know what score is most likely to be approved and the higher score the higher your chances of being approved.

If you want to get one of the best credit cards you’ll need a good or excellent credit score to be approved. Good or excellent credit scores are typically 650 or above.

If you have bad or poor credit there will still be options – you’ll just need to spend more time shopping around to find something that works for your credit score.

Your Income Is Not High Enough

When applying for a credit card you rarely find out exactly how much money you need to make to be approved but there are general guidelines. It is good if you are in full-time employment and making over $800 per month. If you are a college student or in part-time employment then it might not be as straightforward. The reason for this is that credit card issuers want to know that you are going to pay back the loan, and if you can’t then this will be a negative mark against your application.

High Levels of Debt

The higher your debt to income ratio is the riskier your application will seem. If you already have credit cards and you are using more than 30% of your available credit then the loan and credit issuers will look negatively on this. If you want to increase your chances of being approved you should try to pay off some of your debt to lower the ratio before applying again.


Don’t reapply online immediately. Follow our steps to improve your chances next time.

How Can I Improve My Chances Of Being Approved Next Time?

Find Out Why You Were Declined

Before you rush into reapplying you should try to find out why you were declined the first time. It might be something simple like you filled out the form wrong, or it could be to do with your credit score. If it is something easy you might be able to fix it quickly before applying again, but if it is to do with credit utilization or your credit score then this might be more difficult to fix.

You can ask the lender who processed your application why you were declined. They might not tell you exactly the reason but they could outline the main reasons why you were declined which should be helpful.

Re-Check Your Credit Score

After you have heard back from the loan provider you can also go and double-check your credit score to see if there is anything in there that would be helpful. You might have a previous debt that you paid off that remains on your credit report or something else that you didn’t anticipate.

Review it closely and look for any missed payments or anything that should be removed from the report. If you can help clean up your report it will help you the next time you apply.

Don’t Apply Again Straight Away

You might really need the money but don’t reapply immediately as this does not look good on your credit report to to lenders. If you want to improve your chances of being approved the next time apply you should make sure to review all steps in this article before applying again.

Every rejected application will hurt your chances of getting approved in the long run. Even if you are successful in your application every time you apply will mark your credit score which can impact your credit history in the long run.

Richard Allan

Richard Allan

Richard Allan is the founder of Capital Bean and a passionate writer about personal finance, budgeting and how to save money at home and work.

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