What should I do if I've been rejected for a loan?

If you have been denied credit it is best not to apply for credit again until you find out why. There are a number of factors that may result in an application for credit being refused including:

• Not having either a high enough income or sufficient savings to meet the repayments

• The number of other loans and other financial commitments you have

• How secure your employment is

• What’s on your Credit Report, in particular entries for previous bankruptcy, defaults, serious credit infringements, a high number of credit applications or a poor repayment history

 

If you have been declined credit and the information on your Credit Report was a factor, the lender, phone or utility company will give you details of the credit reporting body they used.

If it was Equifax, the first step in understanding why your Equifax Credit Report has contributed to you being declined credit, is to obtain a free copy of your Equifax Credit Report. If you have been declined credit you are entitled obtain a free credit report if you apply within 90 days of being declined and provide evidence that a credit provider has declined your application for credit.

By getting a copy of your Equifax Credit Report you can better understand what information may have contributed to your application refusal. It is important to check your Equifax Credit Report regularly to ensure it is accurate. You may also consider subscription plans from Equifax that provide additional features such as Credit Alerts and Credit Scores that can help you manage your credit profile.

Learn more: CreditSmart helps explain what to do when you can’t get a loan.