Loan Broker UK


Whether you are a first time borrower or a returning customer, Loan Broker is always your trusted friend.

Here is some free professional advice to help secure and enhance your financial future.

Why loans are refused and what to do.

Being rejected for a loan, especially when you’re in an emergency, can be discouraging. Most borrowers are tempted to try again immediately and send out as many applications as they can, hold your horses. Before you send off another loan application, review your application and make sure you’ve followed our loan brokers’ advice. Lenders have to lend money responsibly, they can’t lend you money if they think you won’t be able to make the repayments.

Let’s look at some common reasons why your loans aren’t approved.

You have bad credit history

While bad credit is usually discussed as a single metric, there are varying levels of bad credit. For example, you may have never defaulted on any loans or credit cards but you may have applied for five loans in the past two months. Lenders have different opinions of what is a ‘bad credit score’.

Insufficient income

The lender can’t approve your application if they find that your income won’t sustain your monthly repayments. Lenders usually have a minimum income you need to earn in order to be eligible for the loan so check to see if there is one set. If not, work out what repayments you will need to make and if these will be manageable on your income.

The lender thinks your purpose is dubious

Check to see if you will be able to finance what you need with the loan that your applying for. Many loans come with restrictions as to how the funds can be used. For example, secured loans can only be secured with certain assets and car loans have an age restriction on the vehicle that you are purchasing. Also, if your lender finds out that your loan purpose isn’t credible, your chances of loan rejection are quite high.

Incorrect details

Lenders will usually verify the details you put in your application, if they find inconsistencies, they may reject you.

Unstable employment or insufficient employment history

Lenders are very meticulous about your job stability, many lenders insist that you should have a stable job and be out of your probationary period, otherwise they will reject your loan, probation periods differ but lenders usually require three months of payslips, or six months worth for casual employees.

You hold too many loans

If you hold too many loans, this may give cause to reject you, unless the lender is advertising debt consolidation loans [link to relevant page]

Low value of assets

Lots of lenders have restrictions on the types of assets you can use as collateral for your secured loan. Some are less likely to lend if you are not a home owner, in this case you may need the services of an unsecured personal loan lender.

Don’t keep applying if your application keeps on being rejected.

Think very carefully before applying for more credit. Any credit applications you make, successful or not, will show up on your credit file. Several applications in a short space of time might make lenders think that you are desperate for cash, this might damage your credit rating further. Your credit rating affects whether you can get credit and how much you can borrow, it can also affect the interest rate you are charged.

From our professional experience, addressing these issues will drastically increase your chances of your application being accepted. In our next post, we’ll discuss how you can enhance your loan application. In the meanwhile, our brokers are on hand to answer any questions or concerns you may have about applying for a personal loan. Also, here is some advice on how you can increase your credit rating.

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Representative APR Example

The rate you are offered will depend on your individual circumstances.

All loans are subject to status. The interest rate offered will vary depending on our assessment of your financial circumstances and your chosen loan amount.

Representative APR Example: On an assumed loan amount of £2,600.00 over 36 months. Rate of interest 41% per annum (fixed). Representative 49.7% APR. Total amount payable £4,557.89 of which £1,957.89 is interest. 35 monthly repayments of £126.61 and a final payment of £126.54


Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK
Credit subject to status & affordability assessment by Lenders.
Loan Broker ( is a credit broker and not a lender