Reasons for Refusal of Personal Loans

Prêt Personnel Sans Justificatif

Don’t you want personal finance to be a mandatory college course? Unfortunately, too many of us learn by mistake. If you need a personal loan and are declined, you may be amazed at what went wrong and how to fix it. Here are some pointers.


No credit score is a situation in which you have never used a loan and therefore have no credit history for the bank to review. You have no way to make an informed decision about whether or not to repay a personal loan based on your credit rating. No credit is worse than a bad credit. If you qualify for this type of introductory loan and make regular payments for this type of loan, a “no credit check loan” value can be overcome:


Low loans take various forms. Using more than 30% of your allowable debt can negatively impact your score. Too many inquiries from shopping for loans will also hit hard. Defaults, defaults or bankruptcies are huge red flags and it can take a long time to rebuild.

Other things that lenders can check are whether you have sizeably assets or not in case you are in arrears with the loan. They also check whether your debts are diversified or whether you only have one type of debt.


Proof of income is usually required when applying for a personal loan. If you are unemployed or underemployed, this can work against you when approving the loan. Lenders may also need work experience to determine how long you have worked with your current employer and whether you normally have job stability. Frequent loss or change of job indicates to a creditor that your payments may not be reliable.

Purpose of the loan

Believe it or not, your application may be denied based on your proposed purpose for the loan. Financial institutions have the right to set the parameters for their withdrawals and can accept or reject your application depending on what you want the money to be used for.


If you are in default of payment beforehand, your name may be placed on a list to which you cannot make loans. This is also known as the “black list”. This will follow you for a long time and is difficult to erase. If you solve the debt problems, get documents to prove the solution.


If you need a loan now but are concerned that you will not qualify for a personal line of credit, you can qualify for a loan with no credit check. You could be on the way to a better financial future in no time!