You’ve applied for numerous personal loans but for some reasons, all of them have been rejected. Few things can be more painful than being rejected on a regular basis. You start to think that underwriters have a personal problem with you.

Nope – they do not. In fact, you’re the problem here, but you’re not aware of that. Here are a couple of reasons why underwriters reject all the applications you make for personal loans. Your applications are rejected because:


There are Errors in your Credit File

This is the main reason why you can’t seem to get your personal loans, no matter the lender you apply with. You probably haven’t checked it out for quite a while. If you didn’t, errors and inconsistencies might have slipped in it. There are many computing mistakes that can be made by banks, so it’s not necessarily your fault unless you’ve defaulted on previous loans or made late payments. We recommend you check your credit file if your application is rejected again.

Foreclosures and/or having filed for bankruptcy are black stains on your credit file, and they decrease your chances of getting personal loans. Explaining the reasons why any of those happened can make a difference.


You’re not Making Enough Money

You must have a certain amount of monthly income in order to afford the personal loan. If you have a smaller salary, your gross income won’t be sufficient, therefore the underwriter will reject your application. If you’ve got an additional source of money, you should specify it, even if it’s not stable. Working as a freelancer, for instance, can bring you some good money, albeit on-and-off.

If you’ve got a raise, that doesn’t necessarily mean your gross income is bigger. You don’t know that, but the underwriter does.


You’re about to Change your Job

Or you’ve changed it shortly before applying for the loan. In the mind of an underwriter, this is synonymous with not having a well-established source of income. You might have enough income, but there’s still a risk that you’ll change your job again. Employment history, if you’ve ever wondered, does matter when you want to get a personal loan. That’s why it’s important to have a steady job for as much as possible.

This doesn’t guarantee that you’ll get your personal loans, but there’s no harm in trying. The underwriter knows what the costs of living are. If he decides you won’t be left with much money after you’ve made the payment, then he’s right.


Your Credit Score is Low

You shouldn’t be surprised to have your approval rejected lightning-fast if your credit score is low. The chances of getting personal loans, in this case, are dangerously close to 0.

If this is the reason why the underwriter threw your application in the trash, do whatever you can to correct your credit score. You can do it yourself or you can hire a credit repair company. Its services will cost you, but if you have no other choice, you’ll have to pay up.


You’re already in too much Debt

Obviously, if you have multiple debts already, the chances you’ll skip payments on the personal loan you want to get are pretty high, at least in the mind of the underwriter. This is where the credit score comes in handy.

If you have multiple loans but your credit score is pristine, it shows that you’re 100% trustworthy and there’s no risk that you’ll default or start missing on your payments. It would already be redundant to speak about the importance of a good credit score.


You’ve applied for an Unsecured Loan

There’s no way you’ll get unsecured personal loans, especially if you fail to meet all the requirements we’ve talked about above. The lack of a security automatically increases the risk the lender takes by giving you the loan.

Apply for a secured loan and you might actually get it instead of going hit-and-miss with an unsecured one. Unsecured loans have much sterner requirements than their secured counterparts. Plus, they’re usually for larger sums of money.



As you can see, there are plenty of reasons why your applications for personal loans hit the dead end. Banks are usually very rigid when it comes to the standards you must rise to in order to get a loan.

Other lenders are not as draconian, so keep on searching. Of course, make sure everything is alright: check all the points above for possible problems. And also, you can get in contact with NSW Mortgage Corp and get some advice from people with a lot of expertise in this field. If you haven’t done something that ruined your credit file irrefutably, you’ll get your loan sooner or later. Put all your things in order and apply again.