Why have I been refused a loan?
Having a country court judgement (CCJ) or history of missed, late or defaulted payments could mean that lenders see you as a risky investment and aren’t willing to give you a loan.
You could be refused because you’ve applied for numerous loans or credit in a short space of time. Multiple loan applications imply you’re seriously hard up and need constant top ups of cash; lenders will be wary of this as it indicates that money management isn't one of your skills and that you must have been turned down numerous times.
Or, you may have been turned down because of a genuine mistake; perhaps your address was written incorrectly or your name’s been spelt wrong. Maybe you’ve just got very little credit history; ironically, if you’ve never borrowed or taken out credit, you could struggle getting a loan approved. Lack of credit history just means that lenders have no idea whether you’re good at repaying money.
It could be that you just don’t meet the target audience for a particular lender. While it never feels good to be rejected because you just don’t fit a profile, at least you know it’s nothing personal. Some lenders specialise in providing loans to those on low incomes, or who live and work within a certain area, such as with credit unions.