I Need A Loan But Keep Getting Declined (2024)

Once you’ve determined the likely reason for your rejection, you’ll want to work on improving your financial situation before applying again. Below are some steps you can take to increase your chances of being approved.

Improve Your Credit Score

One of the best ways to ensure your qualification for a personal loan is to improve your credit score. The first step you’ll want to take is to check your credit report to verify it has no errors. It’s possible to obtain your credit report through various online resources and websites, but your best option is AnnualCreditReport.com where you can get a free weekly credit report from each of the three major credit bureaus all in one place. If you find any glaring errors in your credit report, you’ll want to dispute them with the appropriate bureau.

Once you’ve checked your reports for errors, consider how you can build or improve your credit score. You may want to:

  • Request a credit limit increase: Asking your credit card company for a limit increase and then not using the card will lower your credit utilization (a big factor in your credit score).
  • Pay down your credit card debt: Paying off as much of your credit card debt as you can afford to pay will lower your credit utilization. Using a debt payoff method or talking with a financial advisor can help you prioritize and overcome credit card debt.
  • Set up automatic payments: Having your payments automatically deducted from your bank account each month will help you avoid missing or making late payments.

Taking steps to repair your credit score can also help lower your DTI, increasing your odds of loan approval.

Ask Someone To Co-Sign

If your financial situation isn’t sufficient for loan approval, another option may be to ask someone to co-sign a loan with you. Getting a personal loan with a co-signer that has a strong credit score and a solid income can boost your application.

Your co-signer – ideally, a family member or close friend – will apply alongside you, and you’ll both be responsible for repayment of the loan. Because both your credit score and your co-signer’s score are on the line if you miss a payment, it’s important to make sure any potential co-signer understands the risks involved.

Please note that Rocket Loans℠ doesn’t currently offer the option to co-sign on loans.

Compare Lenders

Lending requirements aren’t the same across all lenders, so it’s often worth comparing multiple lenders to see if you may be loan eligible somewhere else.

Using a broker or lending comparison website might increase your chances of finding a lender that will approve you for a loan. With these services, your loan request goes to several lenders at the same time. This doesn’t damage your credit in any way, and it can provide you with more options.

If you’re still struggling to qualify through a traditional lender, consider working with your local credit union. Credit unions are often more flexible in their requirements and are willing to work with you to evaluate your financial situation.

Use Collateral To Secure The Loan

Most personal loans are unsecured, meaning they don’t require collateral and are approved primarily on your creditworthiness. If your credit score is lower than you need it to be, you could consider a secured loan.

The inclusion of collateral makes secured loans easier to get approved for, as it assures the lender they’ll get their money back one way or another – even if you default on the loan. After enough missed payments, your lender can take permanent possession of the collateral asset you’ve offered up.

Prequalify For A Personal Loan

Prequalifying through a lender can also be a beneficial strategy. Getting prequalified typically only requires a soft credit check and can provide you with a strong indicator of whether you’ll be approved. A prequalification also includes your tentative loan amount and interest rate. It’s important to note that although a positive response may come from your prequalification letter, this doesn’t guarantee you’ll be approved for a loan.

I Need A Loan But Keep Getting Declined (2024)


I Need A Loan But Keep Getting Declined? ›

Use Collateral To Secure The Loan

How to get a loan if you keep getting denied? ›

Credit score, income and debt-to-income ratio are the main factors lenders consider when reviewing applications. Paying down debts, increasing your income, applying with a co-signer or co-borrower and looking for lenders that specialize in loans within your credit band could increase your approval odds.

How to get a loan when you keep getting declined? ›

You may not find out exactly why your loan was declined, but you can take steps to avoid the same happening again. You should check that your credit file is accurate. Improve your credit score by managing existing credit effectively. If you still need a payday loan, consider using a broker or comparison site.

How to get a loan when no one will approve you? ›

Apply for a secured loan

If you have something of value to offer as collateral, you might consider getting a secured loan that isn't a car title or pawn loan. There may be a credit check involved, but if your collateral is sufficient, it could help you to get approved.

How to borrow money when you can't get a loan? ›

Consider these alternatives if you need to borrow but don't qualify for a personal loan:
  1. Credit card.
  2. Home equity loan or HELOC.
  3. Personal line of credit.
  4. Peer-to-peer loan.
  5. Life insurance policy loan.
  6. Retirement plan loan.
  7. Mortgage refinance.
Feb 13, 2023

What is a hardship loan? ›

Hardship personal loans are a type of personal loan that is designed to help you overcome financial difficulties. This type of loan is generally offered by small banks and credit unions, and has lower interest rates, lower maximum loan amounts, and shorter repayment periods than standard personal loans.

How hard is it to get a $30,000 personal loan? ›

Different lenders have varying minimum credit score requirements for a $30,000 personal loan. Generally, a score of 670 or higher is recommended to access better interest rates and terms.

How to get money with really bad credit? ›

Your options for poor credit loans include: Personal loans: Some personal loans are available with bad credit, but you will likely pay higher interest rates and may not be able to borrow the full amount. Secured loans: With a secured loan, you put up an asset as a guarantee when you apply for a loan with bad credit.

Can I appeal a declined loan? ›

An appeal can only be made after a decline decision following a formal application.

Which bank gives a loan easily? ›

With attractive interest rates, minimal documentation and speedy processing, Bank of Baroda Kenya offers among the best personal loans today.

What's the easiest loan to get approved for? ›

The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.

Which loan company is easiest to get? ›

Easiest-to-get personal loans compared 2024
TitleAPRMin. credit score
Avant9.95% to 35.99%580
LendingClub9.57% to 35.99%600
OneMain18% to 35.99%Undisclosed
LendingPoint7.99% to 35.99%600
6 more rows
Mar 28, 2024

Is hardship personal loan legit? ›

Hardship loans are personal loans that typically come with fixed interest rates and payments that are due monthly until you repay the balance. After getting approved for a hardship loan, you'll receive a lump-sum payment via direct deposit or check.

How to get money in an emergency? ›

I need money now. Where can I borrow from fast?
  1. Emergency credit. We do not recommend payday loans or other forms of high-cost credit. ...
  2. Credit unions. Credit unions are local, member-owned alternatives to banks. ...
  3. Grants. ...
  4. Trust funds. ...
  5. Help from your local council. ...
  6. Track down money you have missed out on.

How to borrow $500 quickly? ›

You can get a $500 loan via a personal loan, payday loan, payday alternative loan, cash advance app, or credit card cash advance. However, some options are better than others. Some small loans come with high costs that can cause financial hardship.

Can you have a 700 credit score and still get denied? ›

According to the FICO® scale, a good credit score falls between 670 and 739. However, having a score in that range or above doesn't guarantee approval on credit applications.

Does being denied for a loan hurt your credit? ›

A rejection won't worsen your credit score

Any time you apply for a loan or credit card, a hard inquiry is done on your credit report. And that will usually result in a modest drop in your score -- somewhere in the ballpark of five points or so. A hit that small generally won't have much of an impact.

Who is the easiest to get a personal loan from? ›

Easiest-to-get personal loans compared 2024
TitleAPRMin. credit score
Avant9.95% to 35.99%580
LendingClub9.57% to 35.99%600
OneMain18% to 35.99%Undisclosed
LendingPoint7.99% to 35.99%600
6 more rows
Mar 28, 2024

Why is it so hard to borrow money? ›

The banks revealed that they are being more strict with their loan standards for multiple reasons, including: an uncertain economic outlook, a decreased risk tolerance, funding cost concerns, and effects of legislative changes.

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