What Are Top Reasons Behind Rejection Of A Personal Loan

What Are Top Reasons Behind Rejection Of A Personal Loan

Many people are confused why their loan application for personal loan gets rejected every time they apply. If that is also your situation, then here are some clues that will help you figure out the possible reason behind it.

No Credit

“No credit” is a case where you have not used credit and so don’t have any credit history for the financial institution to review. They don’t have any method to make an educated decision on whether they should lend a personal loan on the basis of your credit history. No credit condition is worse than poor credit situation. Making regular payments on introductory types of credit can help in solving a “no credit” score problem.

If you are in urgent need of finances, but having a bad credit, you can still apply for Argent Direct loan. Dedicated and skilled customer service professionals are dedicated to fulfilling their needs on priority basis.

Low credit

Low credit can appear in different ways. If you are applying for more than thirty percentage of the allowable debt, then it can adversely impact your credit score. Lapses in loan repayment, bankruptcies or defaults, are big red flags that can negatively influence your credit score. You might need a lot of effort and time to rebuild your credit score from this condition.

Besides this, lenders also look whether you have sizeable assets. People who have no sizeable assets can default on their loan. Lender also checks to find out if you have diversified debts or carrying a single kind of debt.


Income proof is generally needed when you apply for a personal loan. If you are underemployed or unemployed, it can go against you in the process of loan approval. Lenders also need to see a work history to determine how long an applicant has been with the current employer. This lets them determine their job stability. Frequent loss of job or change will give a hint to the creditor that sanctioning loan to you may not be reliable.


If you have defaulted on any of your debts in the past, then your name may come on the “Blacklist”. This mark will take a long time to erase and follow you for a significantly long time. It is important to resolve your debt issues, and also obtain documents that prove of the resolution.


So, if you relate yourself with any of these situations, then you must make efforts to improve credit score. This will increase chances of your loan application to get considered.